General Discussion

Ruby the Liberal

(26,219 posts) Sun Oct 27, 2013, 05:09 PM Oct 2013

My new employer-based HSA insurance? Help?

I think it is better, but can I have a second set of eyes on this?

Currently, I pay $1,600 for premiums for health and dental with deductible of $400 and copays ($25/$50) and have gone out of pocket, after tax, at around $2,500. By my account, that it $1,600 pretax and $2,500 after tax.

In January, they are offering that plan again ($700 deductible, same premiums), but are also offering a 'high deductible' plan with an HSA option. For the same $1,600 on the latter, I will pay $520 in premiums, the company will put $520 into my HSA, and if I add $1,100 pretax to the HSA, I am covered for the higher $1,500 deductible with some room to spare. The HSA can be rolled over (it doesn't expire at year end), and ALL services are covered above the $1,500 at 100%

By my math, it seems like I will save about $2k a year plus tax benefits with this new deal, but am hoping someone can shoot holes in this for anything I may have missed before I have to enroll next week. Seems too good to be true and can't help but think I am missing something.

Help?

4 replies

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My new employer-based HSA insurance? Help? (Original Post) Ruby the Liberal Oct 2013 OP

In general, the HSA can be a good deal if you have a chronic condition requiring a lot hedgehog Oct 2013 #1

I appreciate your feedback. Ruby the Liberal Oct 2013 #2

double check your maximum annual and lifetime out of pocket limits Sedona Oct 2013 #3

Thanks - that was another point of confusion Ruby the Liberal Oct 2013 #4

hedgehog

(36,286 posts)

1. In general, the HSA can be a good deal if you have a chronic condition requiring a lot

Reply to Ruby the Liberal (Original post)

Sun Oct 27, 2013, 05:20 PM

Oct 2013

of check-ups and/or expensive prescriptions. (We've seen a lot of our scripts drop from $60 a month to $4 a month as the generics came out!) I'm seeing doctors on a regular basis, so we maxed out our HSA by June.

If eye glasses are covered, (which they should be), that may make it worthwhile.

The best way to judge is to set up two spread sheets and input your costs from this year. (It doesn't have to be exact, you can input $40 instead of hunting up the receipt to find out if it was $38.50 or $39.50!)

Ruby the Liberal

(26,219 posts)

2. I appreciate your feedback.

Reply to hedgehog (Reply #1)

Sun Oct 27, 2013, 05:26 PM

Oct 2013

Yes - vision is included. Pretty much everything but over-the-counter can be paid for from the HSA.

I just can't help but think I am missing something with everyone talking about how it will be more expensive. They specifically stated that this was in response to "Obamacare (not ACA ) requirements" and were adding their contribution to buffer as they anticipate rates to go up 20% in 2015. We have 3,500 employees.

Maybe the piece I am missing is not knowing what my Neurologist is going to charge for a 3x/year visit as opposed to the $50 I pay now - but even then, medical is 100% covered and prescriptions got to a copay after $1,500, so does it even matter?

Sedona

(3,769 posts)

3. double check your maximum annual and lifetime out of pocket limits

Reply to Ruby the Liberal (Original post)

Sun Oct 27, 2013, 05:36 PM

Oct 2013

Ruby the Liberal

(26,219 posts)

4. Thanks - that was another point of confusion

Reply to Sedona (Reply #3)

Sun Oct 27, 2013, 06:16 PM

Oct 2013

The deductible is $1,500 and everything after that is 100% covered with a $3,000 per year maximum, it almost reads like the gap between the $1,500 for services and $3,000 annual cap is only for prescriptions (which go to a copay after $1,500).

Reminds me - I need to check out prescriptions through costco since I will have to pay full price if I do this.

There is no lifetime max - they list it as N/A.

Appreciate your guidance - this HSA thing is new to me. I bought through the open market for years, mostly catastrophic plans...

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