FREQUENTLY ASKED QUESTIONS AND ANSWERS FOR
HSA
HEALTH SAVINGS ACCOUNT
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6. Can I open an HSA myself?

Some insurers will offer you the insurance policy and the Health Savings Account, so you will not have to open a separate account. Other insurers offer just the insurance policy, and you will have to find a bank or other trustee to open your Health Savings Account

7. Why would some one who is less healthy want a Health Savings Account?

There are two key reasons the less healthy should choose a Health Savings Account.
The first reason is to have control over their own health care decisions and treatments, including their prescription drugs. With an HMO, the sick must face the rationing regime in place by HMOs to contain costs, which includes a frustrating waiting list to see a specialist and treatment and prescription drug formularies that may not have the most up-to-date treatments or brand name drugs that would make them feel the best.

The second reason is a financial incentive.
Assuming the less healthy would rather not be in an HMO or other managed care plan, then they would likely choose a fee-for-service plan. The standard fee-for-service plan has a $500 deductible, with a 20% co-pay of the next $5,000. This means the person would pay $500 for the deductible, and $1,000 for 20% of $5,000, before being covered 100%.
That is $1,500 in after-tax income to be insured 100% for someone who is less healthy in a traditional, low deductible, fee-for-service health insurance plan.
With a Health Savings Account, the same individual would pay a much smaller premium, and in most cases, the savings fund a majority of the deductible in their Health Savings Account.

With a $1,700 deductible, and, say $1,500 deposited tax-free in the Health Savings Account, the less healthy individual with an HSA would have to come up with $200 in after tax money to be covered 100%. ($1,700 deductible minus $1,500 from the Health Savings Account equals $200 to meet the deductible).
So the choice for a less healthy individual in a fee for service plan is: (1) pay $1,500 in after-tax funds to pay to be covered 100% by their insurance, or (2) with an HSA, pay $200 in after tax money to be covered 100%. The less healthy, therefore, have a financial incentive to choose a Health Savings Account