Tony Novak profile picture
  "AskTony" column archive        


Most Popular

AskTony Archive

This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

The author is paid for product endorsements and has an ownership or other financial interest in the businesses related to the topics covered.

New questions

Submit consumer finance questions at and health insurance questions at

Sponsored by: Insurance Exchange - your source of valuable information on state and federal health reform benefits.

Core Health Insurance - America's favorite mini-med insurance  with affordable premiums, freedom to choose providers, optional PPO discounts and guaranteed eligibility regardless of medical conditions.

Please support the Web sites that make publication of AskTony services possible.

HSA price goes down when adding a child?

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email

Q: I have a single person HSA insurance and account through my employer. I asked how much it would cost to add my child to the policy and the price was a lot lower than I pay for myself alone. Why?

A: This seems illogical at first, but is one of the quirks of the health savings account program as it is designed by law. Right now you have a policy with a single deductible, about $1600. When you add a child to the policy, it immediately becomes a "family" type plan with a minimum deductible of about $3200. Assuming all other factors remain the same, a policy with a single deductible of $3200 cost less than a policy with a "per person" deductible of $1600 each. There is no error here, it will cost you less (but also increase your risk exposure) to add your child to your HSA plan.


More resources: