The idea behind health insurance is spending other people's money. If health insurance provides no benefit over just putting money in your savings account, people will just do that instead. Then the system collapses.
(Pooling the money is more beneficial than keeping it to yourself, because the insurance companies can invest it better than an individual can. Think of the interest you get on $1000 vs. what you get on $1,000,000. One buys you a cup of coffee, the other supports you for life. When the insurance companies leverage your premiums in this way, it means that the actual money the spend is nearly free. It's a pretty good deal.)
My high deductable plan doesn't cover anything until I spend $1.5k on health costs in a year. (Except preventive health stuff, that's all covered.) After you pay 1.5k they cover everything. My company and I pay a premium for this coverage (it's not nearly as high as the co-pay and HMO plans available).
Really, when I got to the doctor once or twice a year, for a whopping grand total of about $70/visit, then spend MAYBE $100 on prescriptions/other medications with my prescription discount card, it's really not worth that extra $30 every two weeks.
I don't want to pay for my hypochondriac neighbor's daily doctor visits, or for their kid's sniffles. The way I (and a lot of other Americans) see health insurance is that it should pay for things that would bankrupt you, I can handle the small stuff.
The best part about HSAs is that they are pre-tax accounts, so they help with your income tax costs. This also has the effect of making medical things cheaper because you didn't lose 30%+ on that money before having to spend it. I'm just hoping Congress doesn't cut the usefulness of HSAs with their new health care garbage...
It's only tax-free if your contribution is less than the standard deduction. I don't spend $7500 on healthcare per year, so I can't even deduct it. Maybe if I buy a house I can't afford, then I'll have some deductable interest to push me over...
(If your employer handles the FSA/HSA, then it's pre-tax no matter what. I'm W2, but my employer simply doesn't offer that benefit because it costs them too much money.)
I don't want to pay for my hypochondriac neighbor's daily doctor visits, or for their kid's sniffles.
Well, that's what the co-pay is for. $20 every time you visit the doctor adds up if you visit unnecessarily -- the real cost that the doctor bills the insurance company isn't even much higher than that. Insurance companies aren't losing money on people who see the doctor every week.
(Why do I like the current system? Because the premium I pay is almost exactly matched to my monthly health maintenance cost. And I have protection in the case of disaster, or generally expensive medical procedures.)
Maybe, but only if that forced a real market in healthcare, with transparent and advertised prices and no tying between different services and specialists, so one could actually shop around. Right now, it's damn near impossible to get a rate sheet out of a doctor's office or a hospital, and they don't much like giving quotes on the phone either. Even auto mechanics are more transparent than that (they'll at least give you a quote or estimate if you insist on one). Why can't I go to five different doctors' websites and see five different rate sheets for what they charge for a range of common things, like standard office visits or vaccinations? Why won't a hospital tell me up front how much a surgery will cost, in total after all the different fees (surgeon, anesthesiologist, materials, etc.) are included?
