I know this post is like a decade late and very boring, but I gotta post it anyway
Basically, with employer-sponsored health insurance the employer pays half and the employee (you) pays half. The cost of your insurance goes way down if you have a high deductible, and a deductible is basically what you’d have to pay before the insurance actually pays anything. So ‘high-deductible’ means you have to pay a lot before insurance pays anything, and it’s a lot cheaper to buy that insurance cause the insurers often just don’t pay anything ever. If it’s $5,000 before insurance pays a dime, often times you have to just pay as though you had no insurance. This is obviously bad, but it’s also cheap so like maybe you just luck out an never get sick or injured, right…?
Anyway, HSAs. Yeah, it’s called “Health Savings Account”. It’s marketed as a tax-advantaged, investor-y, bougie-“we’re comfortable” lifestyle way to really feel like a keen insider. Picture this: what if health insurance was individualized in the same way 401k and retirement stuff was, and you could “call your broker” at your “health savings account” to tell them to invest your tax-free “medical dollars” in the latest gizmo or whatever. Just deeply bad for solidarity and also very weird. And this is how basically everyone thinks about HSAs. A “tax-loophole” for the rich that I can also use because “I’m actually very financially savvy, just like the rich, who got where they are because of a weird hyper-individualized investment thing rather than any underlying systemic basis of societal organization”.
And you’re probably thinking: “But I already hate the suburban petite-bourgeois and their annoying mannerisms for reasons that are way less boring and meaningless.” Well you’re right, but also: high deductible plans are a requirement of HSAs so the employer’s half decreases significantly. Your employer doesn’t contribute to the HSA (they technically could, but if you’re reading this post they don’t [incredibly silly losing battle available there for libs]), so hopefully you do at least up to your deductible, but it’s pretty likely that’s not possible even if you had the money (no one does) because you literally aren’t allowed to due to contribution limits. (if people did have the money it would probably be better to get different / better / additional health insurance anyway.) But importantly and I guess obviously: nobody contributes to their HSA. It’s basically the chance for each person to individually manage an insurance fund for only themselves, which is almost exactly the same as paying out of pocket, the main difference being the additional bank account and a make-work program for MBAs. I’ve talked to almost a dozen office workers about this and they mostly have no idea what I am saying at all or say “yeah, I added money in onboarding, but I canceled it once I realized it came out of my pay.”
There’s no non-scam option btw if that wasn’t clear. And, yeah, obviously all health insurance is a scam, but this is a different scam run by a slightly different set of people (there’s def overlap though don’t get me wrong). The office job benefits world is basically a choice between varying levels of high-deductible plans + HSA (ie. $1.5k, $3k, $5k…) with maybe one ridiculously expensive low-deductible plan.
Anyway, thoughts? I needed to get this rant out, I guess. Maybe I just missed the discourse on this because I was a child at the time lol.
Relatedly: Matt Bruenig: The Welfare System Stole $2k From Me
This is a long rant about Flexible Savings Accounts, which are these ridiculous schemes that allow you redirect some of your untaxed paycheck into accounts that can only be spent on certain health care or child care items. To use them, you have to guess how much you are going to spend on those items during the year, and if you wind up wrong, you the money you put into the account is forfeited to your employer. Nearly half the people who use the accounts forfeit money to their employer ever year!
ya i, cleverly or so i thought, squirrelled away enough money this year at the new job to cover me for a years of worth of (weekly? semi-weekly? i probably split the difference) psychotherapy appointments, which it appeared, despite what i think is pretty good health insurance, to require a non-deminimis copayment per appointment. free money, fuck the tax man, fund the the fsa. but, as it turns out, any telehealth behavioral apppointments are actually free on my plan, and i see my therapist by telehealth, so it’s all actually free, and so now ive earmarked thousands of dollars for the fsa which i now i have no plan for and only a small fraction will rollover at the end of the year.
so! will i get in a terrible car accident or be diagnosed with a terrible disease and be able to put that money to good use? or will i just buy the most expensive pair of oliver peoples glasses at the end of year, or buy a room full of diapers in a desperate attempt to prove to my ex i’m now reliable and responsible and good at money and planning (this being an unfortunate exception). time will tell!
I am disabled so I think about it like a 15% deduction on the bajillion dollars a year I have to pay out of pocket. But it gives me the perverse thought that when I can get a coupon or discount on something, it makes me feel like I am “wasting” the money I put into the FSA.
But also I just spent two months rent to start laser hair removal and I might be able to reimburse some or all of that out of FSA funds.
Horrible horrible horrible fucking system.
I found a YouTube link in your comment. Here are links to the same video on alternative frontends that protect your privacy: