Health Savings Accounts

[matt267 PE]

My state is now offering a high premium health insurance option with a health savings account. The will contribute $3000 the first year. Their contributions will be determined yearly though, so next year might be less. the IRS caps the 2016 total contributions at $6650 for a family plan. There is a $6000 max out of pocket for families. So at the very minimum, in 2016, I would bank $650 dollars. I would also save about $40 per month with this new plan.

The idea of a HSA looks nice. I like the idea of being able to put money away into a tax differed account that can grow and be used in retirement. I'm just not sure if there are any hidden down sides. I also don't trust the state.

Does anyone else have this type of health insurance plan from the government? What are your thoughts?

 

[matt267 PE]

Blah. Nevermind.

I just found paperwork that shows my co-share would only go down about $6 per month. So it would cost me more then what I'm paying now to max out the HSA.

Nope. No thank you.

 

[zelgar]

In Indiana, we've had the HSA option since 2008. The biggest downside of the HSA is not being able to double cover someone (e.g., you spouse if they have individual insurance from work). We basically have been forced into HSA because all of the cost for the different insurance options have skyrocketed. We're now offered 3 options for health insurance, 2 with a HSA and one without. In 2008, we were paying $0 for biweekly premiums for our High Deductible Health Saving Accounts , now we're around $100 for them. Additionally, the State is putting around $2,500 into our HSA.

 

[matt267 PE]

I'm worried that the state is going to force the issue on us eventually. I though it was a good deal until I realized that we still had to pay (almost the same) co-share.

 

[zelgar]

There's are pro's and con's to HSA. The biggest pro is if you don't have too many expenses, it will be covered by the amount your State puts into it. The biggest con to them is not having enough money when you first get one to cover the cost of a major event that would result in reaching your Maximum Out of Pocket expense. When the HSA were an option, there was around a $5K difference of what the State put into our HSA and the MOOP. I ended up making a spreadsheet and updated it since (it's currently based upon our newest data since we're in open enrollment) to determine the best rate. When the HSA were first offered, there was a splitting line depending on the type of insurance plans because of the cost for premiums, HSA contributions and MOOP. Indiana also penalizes you if you smoke/gives you a benefit if you don't smoke depending on how you look at it and is also gives people a discount if they exercise (self reporting - so who knows how accurate it is).

2015 - 2016 Insurance Comparison.xlsx

 

[matt267 PE]

thanks for the info zelgar.

 

[snickerd3]

stupid ass people in charge of insurance.  I've been back full time for a bit now and they still took the parttime insurance premium (just under $500) amount of out my paycheck instead of the Fulltime premium (just over $150).

 

[Dexman PE PMP]

Our paychecks are a week behind the work weeks they actually cover.  My paycheck on Friday (3/11) covers the hours worked between Feb 22nd & March 4th. Some places they delay it 2 weeks.  It could also be that they can only change the status at the beginning of a "cycle" (month, quarter, year).

Or they are just idiots.

 

[snickerd3]

ours is delayed too, but this paycheck is the one for work from the second half of feb which was completely full time.  They can change status in the middle of a period if needed, but i purposely timed my return to coincide with a new payperiod to avoid this sort of thing.  they are just idiots

 

[matt267 PE]

Or they are just idiots.

this.

 

[snickerd3]

talked to the insurance lady.  She called the fiscal people, they screwed up by not updating the system.  They made the change this morning but the insurance lady can't do anything until after the next payroll has been processed to see the change and then make the appropriate refund which would then have to wait until the next payroll to be processed.  so I am at least a month out from getting my $ back

 

[matt267 PE]

Good luck snick. Sounds like a typical cluster f#ck.

 

[Dexman PE PMP]

Hope this gets straightened out quickly and without further headache. Really frustrating when you expect money and then takes an act of Congress to actually get what you've earned.

 

[snickerd3]

stupid self insure dental program.  Still waiting on reimbursement from dentist visits from april 2015, oct 2015 and april 2016.  The price tag is up to ~$530.  With all the interest for the delay looks like I will be getting more than $50, whenever the state decides to write the checks.