The First Health Savings Account

The great thing about Health Savings Accounts is that they put health care consumers in the driver's seat. For HSA owners, most health care costs are paid out of their tax-free custodial account—in other words, their own money. HSA owners become strong advocates for their own care and savvy consumers.

Just ask Pam Wimbish, the nation's first Health Savings Account Health Savings Account customer, who purchased her plan from Assurant Health. Pam, a furniture manufacturer's representative, had foot surgery 15 years ago—and now her foot was causing a great deal of pain. Her doctor found that a screw in her foot, put in place during her previous surgery, was coming out. Pam asked if this could be remedied right then and there, but her doctor said it would need to be scheduled at a local surgical center.

The day before the procedure, a representative called Pam to ask if she would prefer full or local anesthetic. Since it was just a 10-minute surgery, Pam elected the local. She also asked if there could be a discount, since she would be paying in full that day—and they said they would give a 5 percent discount.

As Pam was being prepped the day of her procedure, her nurse mentioned that the anesthesiologist would be in shortly. Pam said there must be a mistake—she had chosen a local for this procedure. She was told it was the surgical center's policy to have an anesthesiologist administer locals as well as full anesthesia. Since Pam was paying for this procedure with money from her HSA custodial account, paying for two doctors (the anesthesiologist and her own physician) was unacceptable to her. She told the nurse that she wanted her doctor to administer the local. The surgical center ultimately agreed. Ten minutes later Pam was feeling great and driving herself home.

Pam's doctor gave her two prescriptions—an antibiotic and a pain reliever. Pam didn't feel she needed the pain reliever, saving that cost as well. Pam ended up by saving a great deal on all her costs. Her doctor's fee was reduced from $400 to $275, and the surgical center ultimately gave her a 50 percent discount (from $1,260 to $630)! "If I had traditional insurance, I probably wouldn't have asked the questions or made the choices I did," said Pam. "It's much better to be in control of your care. I not only saved money, I also got exactly what I wanted. This all reinforced what a good decision purchasing my HSA was."