Why Healthy People Should Ditch Low-Deductible Plans and Go High Deductible with an HSA

Apple a day keeps the doctor away

Written by Chris Caffrey, ACNP, PMHNP

January 16th 2025

Let’s talk about health insurance. Yes, it’s boring. No one wakes up thinking, “I can’t wait to discuss deductibles and premiums today.” But if you’re a healthy human being (the kind who doesn’t spend weekends swapping hospital stories), choosing the wrong plan could mean you’re lighting money on fire. And no one likes burning cash.

Here’s the deal: if you’re healthy, you’re better off with a high-deductible health plan (HDHP) paired with a Health Savings Account (HSA). Not just because it’s the financially savvy thing to do, but because it’s basically the grown-up equivalent of discovering cheat codes for life. Let’s break it down.

1. Lower Premiums = More Money for You

Health insurance premiums are like a monthly subscription to anxiety reduction. The problem? For low-deductible plans, you’re paying top dollar for a subscription you barely use.

With a high-deductible plan, the monthly premium is significantly lower. That’s because you’re agreeing to pay more out-of-pocket if something major happens. But if you’re healthy and only go to the doctor for an annual checkup or the occasional sniffle, you’re unlikely to ever hit that deductible.

Translation: less money wasted on insurance you don’t use. Instead of forking over hundreds of extra dollars every month, you get to keep that cash in your wallet or, better yet, put it to work in your HSA.

2. The HSA: A Unicorn in the Tax World

Here’s where it gets exciting. An HSA isn’t just a boring savings account for medical expenses. It’s a triple-tax-advantaged powerhouse that turns your health costs into a financial win. How?

• Tax-Free Contributions: Every dollar you put into your HSA is pre-tax. It lowers your taxable income, meaning you’ll owe less come tax season.

• Tax-Free Growth: If you’re smart and invest your HSA funds (yes, you can do that), your money grows tax-free. It’s like a 401(k) for your health.

• Tax-Free Withdrawals: Use your HSA for eligible medical expenses, and it’s 100% tax-free. No strings, no fine print, just tax-free spending.

  
  

And here’s the kicker: the money in your HSA is yours forever. It doesn’t expire, roll over, or disappear if you switch jobs. In fact, once you hit 65, you can even use it for non-medical expenses (though those withdrawals will be taxed, like a regular retirement account).

3. Cover Your Medical Costs—Eligible and Beyond

Okay, so what qualifies as an “eligible medical expense”? The list is long and includes the usual suspects: doctor visits, prescriptions, and medical devices. But what about all the “extras” that keep you healthy, like supplements, gym memberships, or home gym equipment? That’s where it gets interesting.

With a little paperwork, these non-traditional expenses can become eligible for HSA coverage. Enter the magical document: a letter of medical necessity. This isn’t something you can scribble on a Post-it yourself. It needs to come from a healthcare provider who can certify that your expense is legitimately tied to your health.

And guess what? You don’t have to beg your primary care doctor to write this letter (because let’s be real, they’re busy and might mess it up). A telehealth company like FlexUp Wellness PLLC specializes in evaluating your needs and providing these letters quickly and efficiently.

Boom: your gym membership, cold plunge and Athletic Greens (AG1) just became tax-free!

4. Build Your Tax-Saving Arsenal

Think about all the health-related stuff you buy that could suddenly become HSA-eligible with a letter of medical necessity:

• Gym Memberships: Staying fit reduces your risk of chronic diseases, so why not let your HSA foot the bill?

• Home Gym Equipment: Treadmills, weights, yoga mats—all covered if you’ve got the right paperwork.

• Supplements: Need vitamin D, fish oil or protein powder for your health goals? Add it to the list.

• And so many more that you would not expect!

  
  

By leveraging your HSA for these expenses, you’re not just staying healthy—you’re doing it while saving a boatload of cash on taxes. And if you’re unsure whether something qualifies, FlexUp Wellness PLLC can help navigate the rules and ensure your bases are covered.

5. Financial Peace of Mind

Here’s the ultimate truth: life is unpredictable. Even the healthiest among us can face unexpected medical bills. But with an HSA, you’re prepared. That account is your safety net, ready to cover the unexpected without derailing your finances.

Plus, the fact that you can invest your HSA funds means it’s not just a safety net—it’s a growth opportunity. While you’re staying healthy, your money is working overtime in the background, compounding and growing like a financial superhero.

6. You’re Playing the Long Game

Here’s the thing about high-deductible plans and HSAs: they’re not just about saving money today. They’re about setting yourself up for a healthier, wealthier future. Medical expenses are inevitable as we age, and having a fully funded HSA means you’re ready for whatever comes your way.

And if you stay healthy and don’t use much of your HSA? Even better. That money can roll into your retirement plans, giving you more options and flexibility when you’re older. It’s like planting a money tree and watching it grow over decades.

Final Thoughts

If you’re healthy and sticking with a low-deductible health plan, you’re leaving money on the table. A high-deductible plan paired with an HSA is the smart choice—lower premiums, triple tax benefits, and the ability to turn everyday health expenses into tax-saving opportunities.

And with tools like FlexUp Wellness PLLC to help you make the most of your HSA (hello, gym memberships and supplements!), there’s no reason not to make the switch. So, take the plunge, do the math, and start playing the health insurance game to win.

Your wallet—and your future self—will thank you.