We have the plans setup here for some people who want them.... it's not to replace the insurance though, it's to help with the higher deductible since insurance costs so much we have elected to go with lower coverages these last few years as the cost keeps climbing up & up.
Health care insurance is a major issue in the US and it just keep going up higher every year, for some reason it has stayed off the radar this last year or two but the cost is crazy.
It's a risk you have to assess for yourself though, I'm not sure if I could do it myself.... just think that one major issue could break you and all your savings and then some.
but what are the odds of that?
you use it in conjunction with an approved High deductible insurance plan (basically like a major medical plan)
I can get a plan that does everything. including prescriptions, after the initial deductible is met for about $78/month.
now figure that the deductible is the same as the total yoou can put into the account of $2850, and divide that by 12 months, and even if i set it so the company pays the ENTIRE amount into the account ($2850) its still cheaper for the company (2850/12 = $237.50 + $80/month = $317.50/month), and unlike regular insurance, that money, if not used, rolls over into the next year and can be used for any approved medical expense without penalty.
And it's pre-tax income and tax free outlay.... so it's in essence the same as me having 1.33 times that to pay for medical expenses.
it makes sense IF you don't use all of your deductible every year, and there are even cheaper HDHP plans out there.....
but i want to hear from someone that uses one to see if i'm missing anything.