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Started By
Message
HSA vs. Traditional Health Insurance Plans
Posted on 11/12/13 at 2:13 pm
Posted on 11/12/13 at 2:13 pm
First off, sorry for the novel, but I couldn't see how to shorten it before posting as I want to provide enough information to get some solid feedback from you all.
My company is going through open enrollment now, and I am seeking advice from you all about what you would do if you were in my situation.
My situation - 29 years old, married, and have a 2 month old son, all of whom will be covered under my plan. Wife does not work and will be part time if she does ever go back to work, so no penalty from the President there. I work for a Fortune 500 company with insurance through Cigna.
I've always went with the traditional plan in the past and been relatively satisfied with coverage. However, in response to Obamacare, my company has jacked up the rates and now has me questioning which plan I should enroll in. It's going to cost me $4900 in payroll contributions under the traditional plan, but only $2250 under the HSA option. My employer also contributes $750 each year to the HSA plan, but it has a $3K deductible to meet before the plan pays benefits which I believe are then paid out at 80/20 by them.
I am in good health and go to the doctor maybe 2 times per year, and my wife is also in pretty good health though she has issues come up slightly more frequently. Everything with my kid seems great so far - he's happy and healthy through 2 months of his short life. We do not plan on having another child until 2015 at the very earliest, which was the greatest cost for insurance in 2013.
Would you continue with the traditional plan or enroll in the HSA if you were in my shoes? I guess I'm also looking for pros and cons to each as information from my employer and Cigna seem sort of ambiguous on the HSA option.
Thanks in advance.
My company is going through open enrollment now, and I am seeking advice from you all about what you would do if you were in my situation.
My situation - 29 years old, married, and have a 2 month old son, all of whom will be covered under my plan. Wife does not work and will be part time if she does ever go back to work, so no penalty from the President there. I work for a Fortune 500 company with insurance through Cigna.
I've always went with the traditional plan in the past and been relatively satisfied with coverage. However, in response to Obamacare, my company has jacked up the rates and now has me questioning which plan I should enroll in. It's going to cost me $4900 in payroll contributions under the traditional plan, but only $2250 under the HSA option. My employer also contributes $750 each year to the HSA plan, but it has a $3K deductible to meet before the plan pays benefits which I believe are then paid out at 80/20 by them.
I am in good health and go to the doctor maybe 2 times per year, and my wife is also in pretty good health though she has issues come up slightly more frequently. Everything with my kid seems great so far - he's happy and healthy through 2 months of his short life. We do not plan on having another child until 2015 at the very earliest, which was the greatest cost for insurance in 2013.
Would you continue with the traditional plan or enroll in the HSA if you were in my shoes? I guess I'm also looking for pros and cons to each as information from my employer and Cigna seem sort of ambiguous on the HSA option.
Thanks in advance.
Posted on 11/12/13 at 2:26 pm to Shenanigans
If you aren't going to dr much the high ded plan looks better. Even if you pay the whole deductible you are running about even with the other plan. I'm sure the other plan has extra costs such as company's and all which aren't cheap these days either and add up quickly.
Posted on 11/12/13 at 2:59 pm to Shenanigans
I know our prescriptions are high with the higher deductible.
As a family of four we are rarely sick so we only visit doctor for physicals.
As a family of four we are rarely sick so we only visit doctor for physicals.
Posted on 11/12/13 at 4:19 pm to Shenanigans
Thanks for the help. I'm leaning to the HSA option now. Any situations you can think of where the lower deductible plan would make more sense?
Posted on 11/12/13 at 6:58 pm to Shenanigans
I have an HSA/HDHP and it's worked well for me. Without knowing all the numbers and plan details you have I can't help much, but if you do go this route I suggest contributing as heavily as you can, even if it means skimping on your IRA.
Why? Because the HSA functions much like an IRA that lets you withdraw early for medical reasons. It isn't exactly the same and if those differences matter then so be it. But just like a regular IRA, once you hit retirement age you can withdraw from it under the same rules.
Why? Because the HSA functions much like an IRA that lets you withdraw early for medical reasons. It isn't exactly the same and if those differences matter then so be it. But just like a regular IRA, once you hit retirement age you can withdraw from it under the same rules.
Posted on 11/14/13 at 12:46 pm to Shenanigans
quote:Ecolab?
I work for a Fortune 500 company with insurance through Cigna
if so brotha
ETA: FTR, I'm going with the HSA.
This post was edited on 11/14/13 at 12:49 pm
Posted on 11/14/13 at 1:39 pm to Shenanigans
Another advantage of HSA is that you can use pretax money from the HSA to pay for things like dental visits and over the counter meds.
Posted on 11/14/13 at 2:19 pm to Shenanigans
quote:
I've always went with the traditional plan in the past and been relatively satisfied with coverage. However, in response to Obamacare, my company has jacked up the rates and now has me questioning which plan I should enroll in. It's going to cost me $4900 in payroll contributions under the traditional plan, but only $2250 under the HSA option. My employer also contributes $750 each year to the HSA plan, but it has a $3K deductible to meet before the plan pays benefits which I believe are then paid out at 80/20 by them.
$2250+($3000-$750)<$4900 If the coverage is equal, then the HSA is a no brainer.
PLUS, you get to keep any contributions you do not use. Forever. And can even invest the contributions. Preferably in something very safe. But small gains are better than no gains. I look at it as another form of retirement if you don't end up meeting your deductible every year. Chances are you will have medical expenses when you retire.
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