conversation: User (WorkoutProblems): "Trying to google/research FSA vs HSA but I am not showing any real downsides of having a HSA. My company has always offered FSAs and I've taken advantage of the opportunity annually, but a downside has always been *use it or lose it* with FSA, now this year my company is offering HSA which let's you roll over your funds even if you don't use it. Am I missing something? is this too good to be true? Should I only have one or the other? or can I utilize both? \n\nEDIT: My company offers a HDHP where the deductible is a little over than 5x (1,600 vs 300) the regular. Also the co insurance looks to be double (20% vs 10% non HDHP) \n\nBut they also contribute $400 to HSA, which essentially would bring the deductible down to $1,200 right? \n"
  Self: "A high deductible plan combined with an HSA is great when you have almost no medical expenses, or consistently have a lot of medical expenses so that you blow past the deductible and the tax savings from an HSA make expenses cheaper than co-insurance would otherwise be.\n\nIf you're out in the middle a HDHP plan with HSA is probably not the best deal for paying medical expenses, but even then it might be worth it since you can aggressively fund the HSA, invest it, and use it as an auxiliary retirement account because of the great tax treatment."
  User (WorkoutProblems): "Care to elaborate on co-insurance?\n\nFor example let's say I go to the doctor for something major, the bill comes out to 10,000. \n\nwithout HDHP my deductible per year is $300 \n\nCo-insurance 10%\n\nSo does this mean I'm on the hook for $300 + (9,700 * 10$) = 1,270\n\n\n\nWhereas if I had HDHP \n\nDeductible: $1,600\n\nCo-insurance: 20%\n\nI'd be on the hook for $1,600 + (840 * 20%) = $3,280? "
  Self: "That's the idea - only difference is that you need to consider the co-insurance on the HDHP is (potentially, I guess) paid from the HSA, which is tax free. So $8,400 * 20% = $1680, but since it's tax free you're basically getting it at a discount of your tax rate and it looks more like $1260 - $1344. You're on the hook for less considering that, but still more than your particular low deductible plan for that $10k example.\n\nTake into account max yearly out of pocket between the two plans as well, then you can make some assumptions and figure out where your "best deal" is at for you (and your family)."
  User (WorkoutProblems): "Out of pocket is $3,200 (HDHP) vs $1,500, so does that mean once I have paid 3.2k my insurance will cover everything going forward for the year? "
  Self: "Yup, that's my understanding :)"
  