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Started By
Message
Talk me out of choosing a high deductible plan + HSA
Posted on 10/10/17 at 9:30 pm
Posted on 10/10/17 at 9:30 pm
So it's enrollment time.
Family of 4. Wife and 2 kids (16 year old stepdaughter and 3 year old son)
We're currently enrolled in a low deductible plan. $2000 deductible.
Presently we're barely below meeting deductible for the year.
3 yo old and 16 yo are contributing to almost 100% of healthcare costs.
I'm leaning towards signing us up for a high deductible plan ($4000) and putting the paycheck savings ($100 per) towards the HSA. The $2600 in contributions to the HSA will more than make up for the difference in deductibles but I definitely see that we will be financially at risk if, for example, somebody breaks an arm at the beginning of the transition.
Am I seeing things clearly? It seems like a no brainer to go the HSA route since it rolls over if you don't use it up by the end of the year.
I understand there's a yearly maximum that can be contributed to a HSA but is there a cap on how much can accumulate in the account?
Family of 4. Wife and 2 kids (16 year old stepdaughter and 3 year old son)
We're currently enrolled in a low deductible plan. $2000 deductible.
Presently we're barely below meeting deductible for the year.
3 yo old and 16 yo are contributing to almost 100% of healthcare costs.
I'm leaning towards signing us up for a high deductible plan ($4000) and putting the paycheck savings ($100 per) towards the HSA. The $2600 in contributions to the HSA will more than make up for the difference in deductibles but I definitely see that we will be financially at risk if, for example, somebody breaks an arm at the beginning of the transition.
Am I seeing things clearly? It seems like a no brainer to go the HSA route since it rolls over if you don't use it up by the end of the year.
I understand there's a yearly maximum that can be contributed to a HSA but is there a cap on how much can accumulate in the account?
12
Posted on 10/10/17 at 9:32 pm to dkreller
HSAs are the best savings accounts there are. Tax savings three times.
This post was edited on 10/10/17 at 10:16 pm
Posted on 10/11/17 at 6:13 am to dkreller
The way mine works is if you have a major expense at the beginning of the year that would more than exceed your HSA balance, the account would more or less credit what was needed and then pro rata that portion from your paycheck for the rest of the year to pay it back.
Posted on 10/11/17 at 8:01 am to dkreller
quote:
I understand there's a yearly maximum that can be contributed to a HSA but is there a cap on how much can accumulate in the account?
No maximum on how much can accumulate. I started mine about 5 years ago and currently have about $15k in it. I love it, wish I would have started earlier. And after 65 you can use the money for anything you want, you just pay taxes on it.
Posted on 10/11/17 at 9:16 am to dkreller
It's great to have, especially once the balance is up there.
Posted on 10/11/17 at 10:41 am to dkreller
quote:
The $2600 in contributions to the HSA will more than make up for the difference in deductibles but I definitely see that we will be financially at risk if, for example, somebody breaks an arm at the beginning of the transition.
That's the risk. If you can get past the first few months, you will be good.
Does your current plan have co-pays? Remember in a co-pay plan, many things are via co-pay from dollar one. For example, my kid has as ear infection. Goes to doc. We pay $25 co-pay. Does NOT count toward deductible. If we had an HSA... we would have paid $190, but it DOES go toward deductible.
If you don't have co-pays, and everything is subject to deductible from the start, then I think it's an even better decision to move to the HSA.
It would help if you had $4,000 in savings that you can access from the start in case of emergency, it would also help if you could throw some additional money at the HSA contribution ($1,400 per year at least so you are covering the full deductible).
Posted on 10/11/17 at 1:07 pm to dkreller
HSA is like the traditional IRA and the ROTH IRA (if the funds are eventually being used for medical expenses) rolled into one. I prioritize maxing out my HSA before my IRA.
Posted on 10/11/17 at 1:09 pm to dkreller
I am very glad you started this thread. I am in a similar situation with a child who will be two. Right now it's myself, my wife, and my son on a traditional plan. She will be on her works insurance next year and I'm thinking of switching myself and my son to the high-deductible HSA Plan. I will contribute the full difference into the HSA and I have been contributing some into an FSA this year that I can use until March of next year. I feel like I am making the right decision, just have to keep fingers crossed nothing major happens early on in the year.
Posted on 10/11/17 at 1:23 pm to dkreller
Depends on the health of your family, you can't plan for emergencies that happen. Our oldest son has Down syndrome so the medicines, therapy, various appointments and testing add up to fast. Although we would meet our yearly deductible we wouldn't get any relief or time to save for the high up front costs. Just glad my work offers both, copay is easier for us to manage (we have tried the HSA plan and upfront costs hurt). If your family is healthy and doesn't require much medical care throughout the year they are great.
Posted on 10/11/17 at 8:49 pm to dkreller
This is something I've been considering over the past year.
My wife has a high-deductible plan covered through her work. She's on my FSA plan though... so if I remove her next year I can start contributing towards a HSA?
You really can't beat the triple tax benefits.
My wife has a high-deductible plan covered through her work. She's on my FSA plan though... so if I remove her next year I can start contributing towards a HSA?
You really can't beat the triple tax benefits.
Posted on 10/12/17 at 1:12 pm to dkreller
i can't comment on your scenario but my wife and i had one from when we got married until we had our first kid (about 5 years). Using the money we saved in that HSA account, we haven't paid a single medical bill out of pocket, all paid out of the HSA account. That include having three kids in the past five years. i think we still have a few thousand left.
Posted on 10/14/17 at 6:31 am to dkreller
We have a HSA with quite a bit of money in it now. Great product.
Posted on 10/16/17 at 5:49 pm to dkreller
I'm going to do a little thread hijacking here instead of starting a new one on the same page. I'm an hourly manager at a grocer while going to school part-time. Was in an HRA, thinking of going to an HSA, but the kicker is in january I'm going to step down and go to school full time( 
), and probably lose it. Employee matches dollar for dollar up to 350 a year/single 700 a year/family.
I really like the tax advantages of the HSA but is it worth it if I'm going to be looking for independent health insurance in two months? Is it legal for me to sign up for the "Family" plan to try and get more matched dollars for a couple months even though I'm not married and have no dependents? Can I rollover an HSA if I find a company with better rates?
Single, 24, have enough saved up for next two semesters. Four semesters left. Working on getting the numbers to work for those last two, but I'll find a way.
), and probably lose it. Employee matches dollar for dollar up to 350 a year/single 700 a year/family. I really like the tax advantages of the HSA but is it worth it if I'm going to be looking for independent health insurance in two months? Is it legal for me to sign up for the "Family" plan to try and get more matched dollars for a couple months even though I'm not married and have no dependents? Can I rollover an HSA if I find a company with better rates?
Single, 24, have enough saved up for next two semesters. Four semesters left. Working on getting the numbers to work for those last two, but I'll find a way.
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