HSA - moving to new company

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ejvyas
Posts: 773
Joined: Sat Apr 30, 2011 12:09 am
Location: Boston, MA

HSA - moving to new company

Post by ejvyas »

I am leaving a company to work for another company that offers HDHP + HSA. I have already hit 90-10 deductible in current company HDHP plan (lots of kids appointments) and very close to OOPMax. Please confirm the following:

1. If I elect HDHP in new company, I will have to go through a new cycle to hit deductible again for the year?
2. can I contribute $6550 in this company (Jan-June 2014) and change to non-HDHP plan in the new company?
3. Estimating $10k healthcare expenses (July-Dec) Is it even worth going through another HDHP cycle and getting to the deductible?
4. Can I max out FSA if I select non HDHP plan from July-Dec?
5. How many doctor visits etc can I use to estimate and compare plans? (<1 yr baby with 2-3 minor issues at birth + routine sickness)

New company (half yearly figures for company contrib and payroll contrib)
HDHP plan
$3000 deductible then 10% coinsurance upto OOPmax $6000
company contribution $750
payroll contribution $700
office visits(preventive 0, otherwise 10%coins until deductible) , $100 Emergency(after deductible), hospital 10% coinsurance after deductible, diagnostic (labs/xrays) 10% coinsurance after deductible
What counts towards OOPmax: office visits, emergency, coinsurance, deductible, pharmacy copay


plan A
$500 deductible, OOPmax $4000
payroll contribution $1300
copays apply
$20 office visits, $100 Emergency, hospital 10% coinsurance after deductible, diagnostic (labs/xrays) 10% coinsurance after deductible
What counts towards OOPmax: office visits, emergency, coinsurance, deductible

plan B
no deductible, OOPmax NA
payroll contribution $2500
copays apply
$20 office visits, $75 Emergency, hospital $0, diagnostic (labs/xrays) $0
What counts towards OOPmax: None
Last edited by ejvyas on Tue Jun 10, 2014 5:05 pm, edited 1 time in total.
Spirit Rider
Posts: 13977
Joined: Fri Mar 02, 2007 1:39 pm

Re: HSA - moving to new company

Post by Spirit Rider »

1. I don't know the answer, you will have to check with the new company insurance company.
2. No, max HSA contributions are prorated. If you have six months of HDHP status, your max contribution would be $3225.
3. Maybe, need more information.

a. Does plan A have co-insurance, I factored 10%, which only ends up being $350 a year.
b. What are your co-pays. With your description of appointments, it could end up being $1K over six months. This could be the significant factor.
c. What is unknown is can you use an FSA and how much in this situation.
b. I used 25% marginal tax rate.

Here are some scenarios with the above assumptions and your choices:

HDHP $2631 = $3250 - ($2475 * 25%)

+ $700(premium)
+ $3000(ded.)
+ $300(($6000(OOPmax) - $3000(ded.) * 10% co-ins)
- $750(Co. HSA contribution)
- HSA contr. tax benefit (($3225 Max 1/2 year HSA - $750 Co. HSA Contr.) * marginal tax rate)


Plan A $#### = $3150 - FSA tax benefit?)

+ $1300(premium)
+ $500(ded.)
+ (($4000(OOPmax) - $500(ded.) * co-ins)
+ co-pays
- FSA contr. tax benefit???


Plan B $#### = $3500 - FSA tax benefit?)

+ $2500
+ copays
- FSA contr. tax benefit???
Spirit Rider
Posts: 13977
Joined: Fri Mar 02, 2007 1:39 pm

Re: HSA - moving to new company

Post by Spirit Rider »

4. Can I max out FSA if I select non HDHP plan from July-Dec?
5. How many doctor visits etc can I use to estimate and compare plans? (<1 yr baby with 2-3 minor issues at birth + routine sickness)

4. Yes, I am not an expert, but this is what I believe from my reading of IRS Publication 969:
a. An FSA makes you ineligible for HSA contributions.
b. HSA contribution limits are prorated, FSA are not.
c. HSA status from enrollment until disqualification. FSA status from enrollment to plan year end.
d. An HSA/FSA mid year change would be 50% HSA max contribution, 100% FSA contribution.
e. An FSA/HSA mid year change would be 100% FSA max contribution, 0% HSA contribution because FSA status continues to plan year end.

5. You should use as many office visits as you expect to have.
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