Why a Blogger's Trial with HSAs Fell Short and His Plans for Health Insurance in 2025

Andre Nader, founder of the financial blog FAANG FIRE, set out to explore the advantages of a health savings account (HSA) and discovered it wasn't as beneficial as anticipated. Moving forward, he anticipates reverting to his previous health insurance approach for simplicity.

A Strategic Methodology Applied to Personal Finances

Andre Nader spent years honing his skills on Meta’s growth team, applying experimental methods to enhance products. He now uses similar strategies in his personal life. Having accumulated substantial wealth through strategic investments, Nader shifted his focus to blogging on Substack full-time after being laid off in 2023.

Testing the Waters with HSAs

In 2024, Nader embarked on an exploration of the triple tax-advantaged HSA. This account type necessitated switching his family’s insurance to a High Deductible Health Plan (HDHP) from the more straightforward EPO plan they had relied on for years. While the EPO offered convenience with low co-pays and ample in-network options, the potential savings of an HSA warranted examination.

Understanding HSA Benefits

HSAs are admired for a trio of tax perks: contributions reduce taxable income, investment growth is tax-free, and withdrawals for qualified medical expenses are also tax-free. Post-65, funds can be used for any expense, taxed like regular income. This versatility makes HSAs unique compared to Roth IRAs and traditional 401(k)s, where tax advantages differ.

To fully capitalize on an HSA, funds should be invested and left untouched to maximize growth, which means paying for medical costs out of pocket initially. This was Nader's strategy throughout 2024, meticulously saving every receipt for potential reimbursement in the future.

Reassessing Priorities for 2025

At the end of this experimental year, Nader concluded that the HDHP was not ideal for his family's needs. The incremental benefits of the HSA did not justify the complexities involved. He plans to return to the EPO format that allowed for easier handling of his healthcare without financial concerns dictating health decisions.

Mental Load of an HDHP

Nader found the ongoing need to mentally calculate healthcare costs overwhelming. Unlike the EPO, where costs were predictable, the HDHP required constant consideration of deductibles and out-of-pocket caps. This burden influenced his health choices, leading to undesirable intersections of finance and healthcare.

Ultimately, Nader realized he did not want everyday health decisions to be influenced by cost considerations. His aim is to live without the stress of balancing health needs against financial calculations.