Suppose you have HSA Health Insurance (High deductible) and at some point you develop a serious illness like breast cancer. You undergo treatment that costs thousands of dollars and the cancer goes into remission. At this point, no other insurance companie will write you a new policy. So you are stuck with the HSA Insurance for the reminder of your hopefully long-life. In this case, just preventative treatment/test could run thousands of dollars each year.

On the other hand, if you had standard health insurance, the yearly costs should be much more affordable.

Is this correct?

Regards.
 

This is a very complicated topic and it depends mostly if your HSA is individual or group insurance from your employer. If you have a group coverage it does not really matter if you are HSA or not from the standpoint of getting the group insurance. By federal law as long as you have been covered by group insurance you cannot be denied by your next employer's insurance group coverage, and you will be fully covered at your employer's rates. The HSA option may not even be available with your next employee

If you are looking at individual coverage, it is regulated by the state you live in so basically anything can happen.The state may sponsor your insurance, or refuse to sponsor, or force you into HSA, or prohibit forcing you to HSA. Check with your state insurance commission for guidance. HSA is quite an uncharted territory.

On a personal note, HSA may be a good deal from a tax standpoint, but if you incur a lot of expences and switch jobs and  you may lose a lot of money that year. That is because your deductible will reset, but tax deduction for the HSA contribution will be pro-rated. For example mu son had surgery, so I had used all the deductible (5000) in May. I switched jobs in June so I had to pay a new deductible for the rest of the year. To add insult to the injury the Feds allowed me deduct only 2500b because the deduction maximum is pro-rated on monthly basis. 

Reach, I have used an HSA with a 2500 deductable for about three years now and have over 6k extra in my account. I figured the difference between the policy costs at my company for standard insurance and an HSA then took that plus the normal $350. deductable and added that in. That came as I recall to about $2500 difference per year and the company now adds 1k to the account as well. For me it is a no lose proposition. It also can be used for dental, glasses, aspirin, pretty much any health item. It can even be used to pay for COBRA and it is all non taxable. A great program in my mind but each has their own specific needs.      Ken

Perhaps

If by 'standard insurance' you mean employer sponsored group plan coverage, then usually most will continue to provide coverage following a protracted or costly illness, usually with the cost sharing of annual deductibles and copays, and many group plans will have maximum out-of-pocket annual expenses above which the plan will cover all necessary charges.

Generally, HSA affiliated High Deductible  plans, following an initial enrollment period, will provide coverage 'guaranteed renewable', meaning the plan will stay in force providing you pay the premiums, regardless of the insured's medical condition. However, I believe this may vary by state, so you should check your state's insurance commissioner's web site to be sure.

And the HDHP associate with your HSA will only provide coverage until you are 65, at which point it must stop and Medicare will become your primary health insurer.

BruceM