On HSA accounts and being sick...

So I haven't followed through very well with blogging on a more consistent basis.  I swear its work causing all the havoc.  And the upper respiratory infection I had the last couple of days that I finally dealt with.  BTW, I'm beginning to love my HSA account.   It is doing exactly what I planned for with it.  

Here's the problem...  my spending for health was not matching my consumption for health.  In essence, I was spending about $7 or $8 for every $1 of coverage I got through the health insurance.  The problem is that my family doesn't get very sick.  So I end up spending a lot of money on insurance but don't get much out of it.   Now...   a bit of math...  before, I was spending $168/week for health insurance.  Now that is last years' rate for family.  All told, that equates to $8,736 out of pocket expense regardless of whether I go to the doctor or not.  And if I have to go to the doctor, then I end up paying another $30 copay plus any cost of prescription I pay for.  If it was a brand name drug, I think the cost was $15.  So If I went to the doctor 4 times amongst the family in a year, and got 1 medicine per year, that would be $8736 for premiums, plus $30 copay and $15 for medicine.  So...  $8,736 + ($45 * 4) = $8,916.  That's pretty horrendous.

Now, I pay $118 a week for premiums, so $6,136.  On top of that, I contribute $50 a week and my job matches $50 a week into a Health Savings Account.  Based on my contribution alone, that would be $2,600 in the account by the end of year.  Combine that with the employee match, and you have $5,200.  Now...  If I never get sick, that $50 I contribute and the $50 my job contributes stack up and stack up.  It's not a "use it or lose it" proposition.  Because the insurance company thinks check-ups and shots will keep people healthy, I pay nothing for those.  My son had his 3 year well check and 2 shots and my daughter had her 2 year well check and a shot and I paid nothing.  The insurance company covered all of that.  

Now, for me and my wife getting sick and getting medicine, it was about $170 each plus another $30 each for medicine.   Remember that money in the HSA account?  That's how the bill got paid.  So...  that bit of savings paid the entire bill.  The HSA works like a good emergency strictly for medical emergencies.  Then I get to spend my emergency fund on actual emergencies. 

Second part...   What happens if I get in a car wreck?  The cap per person per year, prescriptions included, is $5,000.   As of yet, I've contributed roughly $200 towards my cap.  Anything over that cap is paid in full by the insurance company.   In the case of a family car wreck, the family cap is $10,000 per family. 

Personally, I'm willing to take a few more first dollar risks if I get to save big bucks.  That's also the point of having an emergency fund so you are financially capable of taking those first dollar risks.