I Broke My Elbow, But Not My Bank Account Because Of My HSA

By objective standards, I’m a healthy human being. Good blood pressure, BMI, weight, and no diseases or chronic conditions. I generally eat healthy and am consistent with physical fitness. On the contrary, my proclivity for taking risks recently brought me back down to earth, literally.

A few months ago, I dislocated and broke my elbow while commuting home from work. The accident happened as a result of being too confident and lackadaisical in my unorthodox method of transport. Ironically, I was on the way to the gym when I left a life of independence and freedom to one of reliance on others and our current healthcare system.

While I was unprepared to absorb the fall, I was prepared to take care of my medical expenses. I’ve had and maintained a Health Savings Account for 10 years and because of this, I’m not in financial hardship with respect to medical expenses, nor do I intend to ever be. I’ve had two costly health-related years out of the past 10. That’s not bad.

My HSA History

During most of these years, I’ve had a qualifying High Deductible Health Plan (the prerequisite for contributing to an HSA) which has allowed me to contribute, pre-tax, to my Health Savings Account. Over time, I’ve built a nest egg (quail sized not ostrich) to save for future medical expenses, as well as my retirement. If it weren’t for my HSA, I would have had a minor financial setback. As importantly, the lack of peace of mind would have added to my pain and frustration.

This plan year, I’ve hit my deductible, as well as my out of pocket maximum (worst case scenario) and will have paid $5,000 to cover all of my bills. As an anecdotal guy living in a data-driven world, I claim (no pun intended), unequivocally, that having an HSA has been one of the best financial decisions I’ve ever made.

The Savings

I could do a side by side comparison, show the cost breakdowns and really dive into the various ways I’m justifying my HSA decision. But, for now, I’ll spare the details and just say that while $5,000 in medical expenses was no drop in the bucket, it was an expense that I’ve moved past because in addition to the triple tax benefits of an HSA, it also brought me peace of mind, which has proved to be invaluable.