Your employer offers a nice range of benefits and you choose to participate in many of the programs provided. One that you have not made your mind up about yet is the health spending account. In fact, this is a wonderful addition to your benefits package that could make a huge difference at some point. Here are three of the more important reasons why you should set up an account and contribute to it regularly.
The Money Can Be Used for Procedures Not Covered by Your Insurance
Many of your health care needs are met by health insurance. However, there are certain types of procedures the plan does not cover. That’s where having a HSA account in place will make a difference.
Suppose that you choose to have some type of procedure that the insurance company considered elective. For example, you decide to have some type of cosmetic surgery and that is something your health insurance plan does not cover. Instead of having to borrow the money, you can draw on the funds that have accumulated in your health spending account. You get to have the procedure and don’t end up going into debt.
The Spending Account Helps With Insurance Deductibles
While your health insurance policy does cover a certain medical event, there is a deductible or a co-pay that you will have to take care of your own pocket. Depending on the amount, that could put quite a crimp on the household budget for at least a few months. If you happen to have a health spending account in place, you can avoid or at least minimize the impact on the budget.
By drawing on the funds in the account, you can cover the co-pay or deductible without any financial hardship. That will mean the balance in the account is lower for a time. Once you are recovered and back at work, it will be easy to start replacing the funds you withdrew and then continue to increase the balance.
The Option for Short-Term Insurance is There
The better health spending plans also allow clients to secure short-term insurance for specific types of needs. For example, perhaps you plan on taking a trip abroad. Did you know that it’s possible to secure travel health insurance through your HSA? You can also secure emergency services that can come in handy if something unexpected should arise. Thanks to the way many of these plans are structure to provide a wider range of flexible benefits you and your family get to enjoy plenty of protection in just about any situation.
If you have never considered the idea of a health spending plan before, now is the time to talk with your employer about the possibility. Discuss specific scenarios and how this type of plan could provide the financial support needed to get through an event without hardship. You may be surprised to learn how much this one addition to your financial planning will do to keep you and your loved ones safe and prepared.
