Re:Ask HN: US-based freelancers - how much is health insurance?
by mgkimsal on Monday June 14, 2010 @03:09PM
(#1430615)
That's not an HSA then - that's a 'cafeteria plan' thing I bet. HSA is your own account via an HSA-capable banking institution. It's basically just another IRA, but you can pay for medical expenses from it with no penalties.
The 'cafeteria plans', IMO, are a bit of a joke, specifically because of the 'use it or lose it' clause, which forces people to waste money or buy stuff they don't need.
I did have one HR person tell me once that they'd cut you a check back for the diff if it wasn't spent, but then it counts as 'taxable income' and this was said with some degree of gravity, as if that was some type of 'ultimate sin' - having taxable income! I'd rather keep the 70% of my money rather than spending it on something vaguely 'medical' that I do not need, thank you.
The 'cafeteria plans', IMO, are a bit of a joke, specifically because of the 'use it or lose it' clause, which forces people to waste money or buy stuff they don't need.
I did have one HR person tell me once that they'd cut you a check back for the diff if it wasn't spent, but then it counts as 'taxable income' and this was said with some degree of gravity, as if that was some type of 'ultimate sin' - having taxable income! I'd rather keep the 70% of my money rather than spending it on something vaguely 'medical' that I do not need, thank you.