YNAB You Need A Budget

[Silverlining]

It's been almost three years since I took the leap and dropped my traditional BCBS health insurance. I am self employed, and every year after my 50th birthday, my premium rose up to 30%, even with a $1,000 deductible and a co-pay on prescriptions.
I approached BCBS about a high deductible plan combined with an HSA, and BCBS was not interested in keeping me at all as a customer.

I joined Assurant/Time Life with a premium locked in at $278 for three years (my last premium with BCBS was $700). With the recession, and extremely irregular income, I have not been able to pay into my HSA as much as I would like. However, I've continued with a $100 automatic deduction from my checking account.

For me, this was the right decision. There have been a few big ticket items that have almost wiped my account clean: A colonoscopy and a crown at the dentist, each over $1,000. I try to space my routine check-ups so that my HSA can accommodate. If I have an emergency, or (God forbid) surgery, I'll probably have to lean on my credit cards for the deductible.

What has changed for me is that I question my doctors about tests and prescriptions. I decline duplicate tests at my GP and OBGYN. I can use my HSA for over the counter meds such as Tylenol and cough drops. I get prescriptions in 90 day vs. 30 day supplies at my local discount membership store, and it's amazing how much is saved!

With all of it on my shoulders, I am finally prompted to take responsibility for my health. I never smoked, and have cut back on alcohol to an occasional social drink at a restaurant. I rarely eat fast food, but don't feel guilty over cheeseburger now and then. Most important, I started walking every day in a local (hilly) park. I've lost 20 pounds, and my cholesterol is back within normal range. I think I'll have other long term benefits, too, especially in bone density. Just as important, walking in a beautiful place and listening to my music has been an amazing stress reliever.

[xraymd]

Greetings, Silverlining, are you a poster/reader on The Motley Fool? The poster there, joelcorley, has some threads about HSA's that are really good to read. One of the really valuable tips from him was (if it is still true) that eligibility of a covered expense to get reimbursed from your HSA DOES NOT EXPIRE if your HSA had begun to be funded before the candidate expense was incurred. What that means for me is that I now save and document *every receipt* for an HSA-eligibile transaction in case I thought I wanted to utilize HSA funds in years to come towards those expenses, to keep the HSA withdrawals tax-free.

I have not kept closely up on any HSA legislative changes so I don't know if this benefit is still in force, but it is sure useful to know about if so, and hope this helps.

xraymd