how does HDHSA/plan save $ for family of 5?

[elaine]

I keep hearing that a high deductible health plan can save $. How? We are a family of 5. Not sickies, but we are over 50 with 3 kids: 1 on occasional asthma meds, 2 on HBP meds, regular Dr. visits, labs, and 50+ things like colonoscopies, cardio tests, etc. Throw in an occasional ortho visit for some sports injury, a few xrays, some PT, strep throat, etc. and I just don't see how the HD plan "saves" us any $. The premiums are less for the HD Plan, but not enough to offset the difference between OOP for above, even with a HDHSA. Am I missing something? So, sticking with BCBS or GEHA unless someone has a better idea.

 

[Elan]

Last year, when my company began offering HDHP, I did the analysis comparing to our PPO option. My conclusion that the HDHP was cheaper if you were either extremely healthy, or extremely sick. The former due to lower premiums, and the latter because if the lower maximum OOP. If you were in the middle, the PPO was cheaper.
FWIW, we're also a family of 5. We seem to be coming out ahead with the HDHP this year. Next year might be different, but I'm sticking with it for now. Oh, my company also seeds my HSA with $500 each year and matches the first $500 I put in each year.

 

[Rumpled]

For my company, the high deductible plan has no premium. The low family premium is about $2500/yr. Deductibles are $1500/300. After that it's 90/10.
At any amount of approved expenditures, the high plan is always cheaper.

 

[VacationForever]

Based on the original post here, the description of your family's health situation is not a good candidate for HDHSA plan. HDHSA plan works for those who see the doctor a couple of times a year, no ER, no expensive lab tests, no ortho, no PT...

 

[elaine]

thanks. that's what I thought. With 5 persons, someone will need a test for something, someone might have a sprain, minor (but still $$) surgery, etc. What I might do is switch from standard BCBS PPO to GEHA standard PPO, which knocks $250 per month off of the premium and is about the same as the HD plans. All but 1 Dr. take GEHA. Time to find a new dermatologist.

 

[SmithOp]

There are tax incentives also.

HSA Tax Benefits

• Contributions to HSAs are not subject to federal income taxes.*
• Earnings to an HSA from interest and investments are tax-free.
• Distributions from an HSA to pay for qualified medical expenses are tax-free.

 

[dioxide45]

You might be better to use a medial reimbursement account instead of a HSA. HRA is a use it or lose it type of account so you need to estimate your expenses very well. It has tax advantages similar to an HSA, you just can't use it to save money from one year to the next.

 

[Sugarcubesea]

Last year, when my company began offering HDHP, I did the analysis comparing to our PPO option. My conclusion that the HDHP was cheaper if you were either extremely healthy, or extremely sick. The former due to lower premiums, and the latter because if the lower maximum OOP. If you were in the middle, the PPO was cheaper.
FWIW, we're also a family of 5. We seem to be coming out ahead with the HDHP this year. Next year might be different, but I'm sticking with it for now. Oh, my company also seeds my HSA with $500 each year and matches the first $500 I put in each year.

I'm so blessed my company puts in $2K into my HSA if we select the family High Deductible Plan. My daughter got diagnosed with Type 1 diabetes this year in April and we instantly meet the deductible and the rest of this year my plan has paid about 90%, we are a family of 4 and it's worked out great for us.

 

[dougp26364]

Each plan is different and your mileage will vary. If I had to rely on my company's high deductible plan I fear I'd be in the poor house just paying for my wife's monthly meds. Our HD plan doesn't have a prescription drug plan attached. Instead, I pay full retail and they reimburse after the deductible is met. Sure they kick in $900 to the HSA but, that's not nearly enough.

 

[Luanne]

You might be better to use a medial reimbursement account instead of a HSA. HRA is a use it or lose it type of account so you need to estimate your expenses very well. It has tax advantages similar to an HSA, you just can't use it to save money from one year to the next.

Here is more information about the differences between a HSA and a HRA. Some of it has to do with eligibility. When I was working I had a medical reimbursement account, which was also a use it or lose it. However, I could submit for reimbursement before the money was accrued in the account.

Now that I'm retired and on Medicare I automatically have a HRA (since I got my prescription plan through the company that oversees the retiree medical) that the company puts money into for me. It covers my Medicare and Medicare supplement payments as well as the prescription plan.

http://www.diffen.com/difference/HRA_vs_HSA

 

[Elan]

You might be better to use a medial reimbursement account instead of a HSA. HRA is a use it or lose it type of account so you need to estimate your expenses very well. It has tax advantages similar to an HSA, you just can't use it to save money from one year to the next.

We had an FSA prior to switching to the HSA. One of the things I like best about the HSA is that I don't have to try and guess my medical expenses for the year. I did hear, however, that we're now allowed to carry over $500 from one year to the next on our FSA's.

 

[dioxide45]

We had an FSA prior to switching to the HSA. One of the things I like best about the HSA is that I don't have to try and guess my medical expenses for the year. I did hear, however, that we're now allowed to carry over $500 from one year to the next on our FSA's.

Correct. An FSA/HRA doesn't allow you to carry over funds from one year to the next. It is use it or lose it. This is why it is important to estimate your medical expenses carefully. When we used an FSA, I always contributed a bit less than we thought we would need. They were good in that you could just use the debit card at the cash register and it would take off the amount that was eligible for reimbursement. I do like now with the HSA that I don't have to submit receipts for all medical expenses. Though I do have to save them just in case of an audit.

 

[Elan]

As I mentioned, ours is no longer "use it or lose it" with the $500 rollover.

One other benefit is that one can invest the contents of an HSA. In effect, an HSA is like a 401k supplement, with the restriction that the contents can only be used for medical expenses.

 

[staceyeileen]

As I mentioned, ours is no longer "use it or lose it" with the $500 rollover.

One other benefit is that one can invest the contents of an HSA. In effect, an HSA is like a 401k supplement, with the restriction that the contents can only be used for medical expenses.

After age 65, the money in an HSA can be used for any reason without penalty. You will pay taxes on the distribution if not used for medical expense, but in that respect it is exactly the same as a 401k. We view our HSA as additional retirement savings that comes with the added benefit of knowing we can use the money without penalty if a legitimate medical emergency were to arise and we needed the money.

With that being said, we hedge our bets. We are a family of 4. I cover myself and two small children through my employer's insurance (a PPO with an HRA component that my employer contributes $1200 annually into). My husband has the HDHP and HSA through his employer, who also contributes into the HSA. It's actually been a really long time since the whole family was on the same insurance plan. We find it's generally best to take advantage of each employer's contribution whatever they may be, assuming a dual income household.

 

[geekette]

As I mentioned, ours is no longer "use it or lose it" with the $500 rollover.

One other benefit is that one can invest the contents of an HSA. In effect, an HSA is like a 401k supplement, with the restriction that the contents can only be used for medical expenses.

YES, this is one of the best features for me. I put money in, and pay my expenses out of pocket, preferring to let the HSAs percolate as healthcare 401ks "for later". My HSAs will allow me to get out of the workforce before medicare-eligible.

Dirt cheap premiums is also nice. Folks that enjoy copays would not like the full-freight nature of the office visit. I also have a greater coinsurance than the PPO plan offered here. I'm going for catastrophic so having 90% coverage in that event vs 80% can make a big difference.

 

[tashamen]

I couldn't figure out how to quote geekette in this new system, but this is also my plan: "My HSAs will allow me to get out of the workforce before medicare-eligible." My employer contributes $2,500 a year into my HSA and I'm putting in more and hope to retire early!

 

[WinniWoman]

I couldn't figure out how to quote geekette in this new system, but this is also my plan: "My HSAs will allow me to get out of the workforce before medicare-eligible." My employer contributes $2,500 a year into my HSA and I'm putting in more and hope to retire early!

I just figured it out. You just click on the reply button at her post. I had been clicking on the Quote button and it wasn't working. It's the reply button that does it.

 

[Elan]

I couldn't figure out how to quote geekette in this new system, ..........

^ 1st "+Quote" and "Reply"

I just figured it out. You just click on the reply button at her post. I had been clicking on the Quote button and it wasn't working. It's the reply button that does it.

^ 2nd "+Quote" and "Reply"

Use the "+Quote" with "Reply" to multi-quote, as above. Click "+Quote" and "Reply" for each post you desire to quote.

 

[Elan]

Or, it appears that one can Reply and use the "Insert Quotes" button to append any previously "+Quote" selected quotes.

 

[tashamen]

Thanks for all the hints on how to quote - what I should have said is I don't have time right now to figure out how to quote. I started with Quote too instead of Reply which is not at all intuitive. It was much easier in the old system. I'll get it one of these days.

In any case, sorry to sidetrack from the real point of this thread.