The Johnson Family – Buying Health Insurance for the First Time

The Johnson Family

Health Savings Account Case Study - Johnson Family 2

Buying Health Insurance for the First Time.

Who: Steve and Laura Johnson and their twins, Allison and Olivia
Where: Dayton, Ohio
What: HSA plan owners
Why: Buying health insurance for the first time

Steve Johnson is a newly self-employed IT consultant. He recently left his position at a large company to avoid a move across the country and away from his close-knit extended family.

Laura is a successful caterer – although she’s cut back a little since the birth of the twins, Olivia and Allison, 5 years ago.

The family has always relied on Steve’s employer group coverage, but now is buying health insurance for the first time. The enrollment process is new to them and they have looked at plans both on and off the exchange.

In addition to making sure that they purchase quality coverage that meets their kids’ health needs, Steve and Laura are also concerned about their finances and the future.

Laura used the calculators on and discovered that an HSA plan makes sense for their family. She likes the fact that an HSA would provide more predictability and control over her family’s health care dollars, and that she can use the savings to pay the family health plan deductible. Once they meet the calendar year family deductible, the health insurance kicks in and pays for 100% of their covered expenses for the rest of the year.

Savings and Tax Breaks

With both parents self-employed, they’re also serious about savings and tax breaks. An HSA offers them:

  • Tax deductible savings.
  • Tax deferred growth.
  • Tax free use of saving for qualified medical expenses, even in retirement.

So, for a future that includes real tax advantages and control over health care spending, the Johnsons agreed that an HSA was the best choice for their young active family.

* The Johnson’s story is a hypothetical example for purposes of illustration only.