Anyone have an HSA plan?

[poundwise]

Originally Posted by LivingAlmostLarge

HDHPs are good for people who have low medical costs. IF you are a high medical cost person it doesn't make sense. DH would love a HDHP if I were healthier.

This is not necessarily accurate. If you have low medical cost OR high medical costs then, in many cases, a HDHP and HSA will prove to be the better value. It is the middle ground where the traditional PPO plan will typically outdistance the HDHP. Of course, there are so many variables to each scenario that one cannot make these statements as blanket. It should just be pointed out that assuming HDHP/HSA plans are only good if you have low medical costs is absolutely not always, or even more often than not, the case. I believe I linked to an article earlier that makes that point.

[poundwise]

Originally Posted by rexdart

as far as my interest rate on the account goes, as long as I stay with my employer's custodian for the account they - the employer - pay all fees (and they keep adding money to the account). I can move it if I like but then I'm subject to the fees of the new custodian and I lose the considerable company contributions.

Yikes. Well, I wouldn't want to lose the company contributions. That alone would probably make it worth staying put. However, just so anyone else reading can know, there are plenty of higher interest, no-fee (or fees waived for simple minimums) HSA accounts out there.

[poundwise]

Originally Posted by Sweepsplayer

I think since HSAs and HDHPs vary so widely, it's impossible to make general statements about them. Everyone has to run the numbers (while including some scientific wild a-- guesses about medical needs) and see if it makes sense for their family.

I agree but not only regarding HSAs/HDHPs but insurance period and companies offerings to employees and etc.

Yes, accurate general statements are hard to come by when discussing this topic.

[StressLess]

Just have to respond about HSA's in NJ. I think it depends on the insurance company, or else the employer. In our case, it makes perfect sense.

Husband/wife coverage with the traditional insurance: $171 biweekly
Husband/wife coverage with the HSA: $43 biweekly.

$128 less biweekly, or $3328 less a year, if your current medical needs are minimal. Plus the tax shelter. This is through Horizon Blue Cross.

We put $1040 in the savings part last year, and didn't use half. And that is using some for dental appointments, which previously we would have had to pay for out of our regular budget.

[disneysteve]

Originally Posted by StressLess

Just have to respond about HSA's in NJ. I think it depends on the insurance company, or else the employer. In our case, it makes perfect sense.

Husband/wife coverage with the traditional insurance: $171 biweekly
Husband/wife coverage with the HSA: $43 biweekly.

$128 less biweekly, or $3328 less a year, if your current medical needs are minimal. Plus the tax shelter. This is through Horizon Blue Cross.

This plan is definitely not available to us. We use an independent insurance broker, who has been very good to us over the years. He said himself that the HSAs in NJ don't make sense at this point in time due to the premiums. He thinks they are a great idea in theory, but until NJ gets on the ball (which somehow your employer has managed to do), they are not a good deal.

[MarianneJ]

Is any portion paid by your employer or is the $43 biweekly the total premium?

Originally Posted by StressLess

Just have to respond about HSA's in NJ. I think it depends on the insurance company, or else the employer. In our case, it makes perfect sense.

Husband/wife coverage with the traditional insurance: $171 biweekly
Husband/wife coverage with the HSA: $43 biweekly.

$128 less biweekly, or $3328 less a year, if your current medical needs are minimal. Plus the tax shelter. This is through Horizon Blue Cross.

We put $1040 in the savings part last year, and didn't use half. And that is using some for dental appointments, which previously we would have had to pay for out of our regular budget.

[ealimbuyao]

Here is the situation:

I am currently employed and my husband, two kids and I are under my employer’s group health insurance plan.

Now, there is an option for me to switch to a position (under the same employer) where I will forgo all my work –related benefits (paid time-offs, and health insurance coverage) in exchange of an increase of salary – that is, $ 11/hr more. One thing is left, I can still contribute to the 401k, only they will lower the match to 3% from previous 6% of my contribution.

Increase in salary - $11/hr (2,184 hrs/year that I work) = $ 24, 024/ year
Lost PTO worth - $5,125

Now, my plan is to look for a HSA/HDHP to cover our health insurance. As per ehealthinsurance.com:
Plan - PPO
Premium - $271/month
Deductible - $ 2000
Coinsurance – 25%
Office Visit - $30

Current Employer:
Plan: PPO
Premiums - $ 150/ bi-weekly
Single deductible - $600
Family deductible - $1,800
Single out of pocket – $2,500
Family out of pocket - $7,500
Co-insurance – 10%
Office Visit – deductible/coinsurance

We are basically healthy family. Husband goes to the cardiologist annually for check-up and has two kinds of prescription meds for the heart.

Would you recommend me switch jobs? The increase in salary is enticing. I definitely need SWEEPS, POUNDWISE, DISNEYSTEVE, MARIANNEJ, REXDART...and everybody's comments on this.

Thanks...

[sweeps]

One thing I would check out is the details on the HDHP plan. What are the benefit limits? You're currently healthy, but if God forbid you had a serious health problem you want to make sure you're going to be fully covered. Also do they cover pre-existing conditions (e.g. your husband's heart condition), prescriptions, and dental visits? These should be factored into the analysis.

My gut feeling is that you'll come out ahead by switching jobs, but maybe not by as much as you think. Your net increase is about $19,000, but subtract from that taxes, out-of-pocket health costs, unpaid days when you need to take unexpected days off, and reduction of 401k match.

On the other hand, a higher salary has other advantages. Cost of living increases (based on percentage) are higher, the amount you can contribute (and get matched) to your 401k is higher, your social security credits are higher, and future employers will usually be more impressed if you command higher pay.

Oh -- and an important question, will you like the job as much as your current one?

[ealimbuyao]

Thanks Sweeps!

It is the same job....only forgoing the benefits offered by the employer in exchange of the $11 raise. Whether I love it or not---that will be another thread.

Thanks for the analysis. I will take note of them while I continue to think about this one.

Yup, the HDHP covers the pre-existing condition of my husband.

[Scanner]

I'll comment as one type of physician and DisneySteve can confirm or deny this.

The only problem I see with HSA's or their sister, MSA's is that patients end up not going to the doctor.

They know they have a $2000 deductible and just don't want to spend the money. So, the neglect this or that, sometimes to their detriment. In fact, I can only remember 1 patient in the last 10 months with a high deductible plan entering my office.

People generally don't want to spend money on the doctor for themselves. If it's their dog or their horse, they'll drop $50's and $100's like a hooked gambler at a casino.

If it's their own health, they'll hold onto the $5's and 10's like the meisters on the frugal forum.

Also. . .it sounds like you are searching for an "Individual health plan" vs. a group health plan. You should know individual health plans are much less regulated than group health plans and often get away with excluding procedures you might otherwise get covered through an employer-based coverage.

To me, it almost seems like a wash but let me end with one thought.

In the world of health insurance, when you are healthy, the cheap plan is the best one around.

When you get sick, then the cheap plan sucks.

Also consider this: my wife entered the hospital with hydronephrosis of her right kidney for 5 days during her second pregnancy. Her hospitalization cost around $100,000. . .what was the allowable, I don't know. . .let's say they allowed $60,000 for her hospital stay.

25% of 60K is $15,000 out of pocket costs to us if we had your new plan.

With your old plan, $2500 is all we would have owed.

I don't think $11/hour is worth it. . .that's just my gut feel.

[ealimbuyao]

Thanks,Scanner. I haven't decided on this yet. I am seriously taking notes, still waiting for some more advices.