Business & Investing
Sponsored by

Health Savings Accounts

9,937 Views | 82 Replies | Last: 7 yr ago by DonaldFDraper
LostInLA07
How long do you want to ignore this user?
AG
Summary plan description. It's the 50+ page document describing the plan.
AlphaBean
How long do you want to ignore this user?
AG
Well timed bump. Earlier in the week HR presented next year's stuff and I noticed the cost of our HDHP for employee only is only about $200 more per year than the company contribution to the HSA so that got me to thinking. I'm on my husband's much better insurance but would it make sense to do the HDHP employee only plan at my employer to take advantage of the HSA? Anyone know whether or not double coverage is allowed (would stay on my husband's plan, his company does not offer an HDHP) in conjunction with the HSA?
LostInLA07
How long do you want to ignore this user?
AG
Double coverage is allowed. Benefits are coordinated between both plans. It actually works out well for us. Our whole family is on my company's HDHP and my wife and kids are in her $300 deductible PPO. Between the three of them, we consume a lot of healthcare so our family deductible on my HDHP is basically paid for by claims against her PPO...so I essentially have no deductible. It helps that there is no employee contribution for my company's HDHP. It's free to include dependents so might as well include all of them since their claims that are paid by another plan still count towards the family deductible.
cr0wbar
How long do you want to ignore this user?
AG
Good bump -

I've had our companies HDHP for a year now - have had the BoA HSA but I'm about to roll that over to another provider. I've been maxing out contributions for this year (~6750) but I'm also slowly paying off my Lasik procedure that I had done last year.

Rolling over to Select Account. They offer several tiered plans as far as their fees, and their interest on the account (if your balance is high enough) will offset their monthly maintenance fee.

I used HSA Search to do a brief comparison over the other providers earlier in the week - and Select Account looked to have some of the best user reviews.
DonaldFDraper
How long do you want to ignore this user?
AG
Would you be willing to talk me through the mechanics of this a little more?

My fiance is provided either a PPO or HDHP from her employer at no cost. She currently is not enrolled in either because she is covered under her dad's plan (she's under 26).

Since there is no cost associated with the HDHP plan and her employer will contribute $73 per paycheck (twice per month) to an HSA, I was thinking it was a no brainer for her to be enrolled in the HDHP to contribute to an HSA then continue to use the full coverage from her dad's insurance.

After asking a few questions to her insurance rep, he said the HDHP plan provided by her employer would be the "primary" plan. So I am trying to figure out what that looks like for her and if it makes sense for her to have both coverage.
DonaldFDraper
How long do you want to ignore this user?
AG
Some more info...

Based on my searching, she cannot be covered by any other plan (even secondary) and contribute to a HSA.

I am trying to figure out if it makes sense from an investment perspective for her to opt out of her dad's PPO and enroll into the HDHP.

100% of preventative care is covered at no cost under her HDHP.

We are both generally healthy other than the occasional visit to a minute clinic for a z pack or a trip to a specialist (dermatologist, chiropractor, etc)


Crunching the numbers:

  • She can enroll in a HDHP at no cost, which allows her to contribute $3,400 per year to an HSA.
  • Her employer will contribute an additional $1,752 into her HSA
  • HSA funds are tax free = additional savings
  • Coinsurance is 100% in networking, 70% out of network
  • The max in network deductible is $5,000; out of network is $10,000
  • The max in network out of pocket (including deductible) is also $5,000, out of network is $20,000

My thoughts are as long as her healthcare costs for the year do not exceed the $1,752 contribution from her employer, she is coming out ahead. Thoughts on if my logical is sound?


Once we are married, the numbers get more complicated because there is cost to add a spouse to her employers plan.

  • Adding me to the HDHP would cost $4,849 per year.
  • My current PPO insurance is $2,244 per year, which I would drop.
  • Net cost to add me = $2,605 per year
  • Cost of adding me minus employer contribution of $1,752 = $853
  • Coinsurance is 100% in networking, 70% out of network
  • The max in network deductible is $10,000; out of network is $20,000
  • The max in network out of pocket (including deductible) is also $10,000, out of network is $40,000

Both of us being on the HDHP plan allows us to contribute $6750 per year tax free to the HSA but I am not sure the extra tax free money is worth the $853 net cost, higher deductible/out of pocket max, and me giving up my PPO coverage.

I feel like if the tables were turned where I had the HDHP plan with HSA, it would make sense to add her for the ability to increase tax free savings then she could get the free PPO option from her employer.

Apologies for the thesis, I needed to get the information out of my head so I figured it made sense to have you guys check my work and maybe it would be useful to other in similar situations.
Mustang1
How long do you want to ignore this user?
AG
Does employer contribution to HSA increase on family plan?
DonaldFDraper
How long do you want to ignore this user?
AG
I don't believe so but I need to confirm.
jtmoney03
How long do you want to ignore this user?
AG
Point of clarification for you...the employer contribution counts towards the $3,400. So she will only contribute ~$68 a paycheck if you want it fully funded for the year.

Definitely check on if there is a increase to contribution from employer with a family. One thing I'm not completely clear on is if the definition of family includes employee + spouse. I've always had kids with the plan, so I'm not sure, and the few articles I've looked at didn't give me a definitive answer.

Most plans I've seen, have the contribution double for family from the employer, so that's a nice benefit. Then the per check deduction would be ~$125 to get to the $6,750.
DonaldFDraper
How long do you want to ignore this user?
AG
Good info! Thank you.

I assumed the employer contributions were treated separately like a 401k.

I'll confirm about the increase in employer contribution and total contribution limit with employee+ spouse
YouBet
How long do you want to ignore this user?
AG
Max Limit is $3,350 if she is lone person on plan. When you get added it increases to $6,750. So, you get an extra $50 per year by going the family plan route.

Otherwise, it's $3,350 each if you both have your own HSA through your employer's.
LostInLA07
How long do you want to ignore this user?
AG
Primary plan pays first. Secondary plan looks at the claim as if it were the only payer (so all charges count against the deductible, which is why this works out well in our situation because I essentially have no deductible as long as she has medical care first) and determines what it would pay if it was the only plan, then that amount is reduced by what the primary plan paid.

Since I'm only covered by a HDHP I can contribute $3,350 to the HSA but we can use that to pay any of our medical expenses.
DonaldFDraper
How long do you want to ignore this user?
AG
Confirmed with the benefits rep that the employer contribution does not increase if it's a family plan.

One peculiar thing is her rep said she can still contribute to an HSA if she's enrolled in her dad's plan as a secondary coverage, which would be most ideal.

So it looks like we'll be enrolling her in the free HDHP so she can contribute to the HSA then keep everything else the same.

Thanks for all the help!
DonaldFDraper
How long do you want to ignore this user?
AG
After doing some more research, I think her benefits coordinator is wrong about her being able to be eligible to contribute to an HSA and still be covered under her dad's PPO.

A few articles...

https://www.irs.gov/publications/p969/ar02.html#en_US_2015_publink1000204039

https://www.zanebenefits.com/blog/bid/97341/faq-can-i-have-an-hra-and-an-hsa-at-the-same-time

Can any one confirm based on experience?
 
×
subscribe Verify your student status
See Subscription Benefits
Trial only available to users who have never subscribed or participated in a previous trial.