Trying to Understand HSA [Health savings account]

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SpartanBull
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Trying to Understand HSA [Health savings account]

Post by SpartanBull »

So a little bit about me. Making decent money. Still on my dad's insurance--I pay him back for my share (His work covers him, and then has to pay to insure his family members). I don't think this plan is a "high deductible plan" as I think HSA requires?
Would it be smart to switch to my own plan, a high deductible plan, which allow me to utilize the benefits of a HSA account? Let me know if I'm someone who this would make sense for, or if I'm missing something. Thanks.
Last edited by SpartanBull on Wed Jan 17, 2018 12:36 am, edited 1 time in total.
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LadyGeek
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Re: Trying to Understand HSA [Health savings account]

Post by LadyGeek »

This thread is now in the Personal Finance (Not Investing) (Health Savings Account). I retitled the thread to help with the acronym.

The wiki has some background info: Health savings account

Also: High deductible health plan

Why don't you ask your Dad if he knows? If not, we can help him figure it out. (There's no need to name his employer.)
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TIAX
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Re: Trying to Understand HSA [Health savings account]

Post by TIAX »

What's the deductible on the policy?
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SpartanBull
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Re: Trying to Understand HSA [Health savings account]

Post by SpartanBull »

According to my dad, its definitely not a "high deductible plan". He works at a pretty small company. (Like 15-20 employees). The insurance is through Blue Care network. Co-pays are like $20-for most doctor visits, and my dad seems to think that If I required an expensive operation of some kind, the deductible would be $500. Does that provide enough information?
It appears to be pretty "good" coverage from what I can tell. What I'm trying to figure out is if there is an advantage in having a high deductible policy instead, which allows me to enjoy the benefits of these Health Savings accounts. Or am I overthinking this and should just enjoy the benefits of the good coverage I have (and pay about $455 a month for). Thanks.
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TX_TURTLE
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Re: Trying to Understand HSA [Health savings account]

Post by TX_TURTLE »

SpartanBull wrote:So a little bit about me. Middle twenties, recent college graduate. Self employing making decent money. Still on my dad's insurance--I pay him back for my share (His work covers him, and then has to pay to insure his family members). I don't think this plan is a "high deductible plan" as I think HSA requires?
Would it be smart to switch to my own plan, a high deductible plan, which allow me to utilize the benefits of a HSA account? Let me know if I'm someone who this would make sense for, or if I'm missing something. Thanks.
If you are in your mid twenties, most likely you are about to be dropped from your father's plan: I believe that with the ACA rules you won't go past 26. Therefore, you may want to start quoting the price of a decent HSA compatible plan. For a young male, this shouldn't be very expensive. You may be able to find one for the same kind of money you are currently reimbursing your father, or perhaps less. Prices and plans vary by state, so you need to get a quote based on your state of residence.
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LadyGeek
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Re: Trying to Understand HSA [Health savings account]

Post by LadyGeek »

As TX_TURTLE suggests, why don't you price a policy on your own? It will be a good learning experience.

The point is to minimize the money you pay for health coverage. That's the total of doctor visits, emergency room, prescriptions, hospital stays, and anything else that falls within the boundary of the policy.

Would your Dad let you peak over his shoulder when he's logged into the insurance website?

You'll see that it's not just the deductible, but total "out of pocket" coverage. For example, if you run into a situation that needed lots of medical care, the most he will pay is the "out of pocket maximum". Although that's a lot of money, the purpose of insurance is to protect against catastrophic loss. Without that coverage, you'd be broke otherwise.

Additionally, you should pay attention if the doctor is "in-network" or "out-of-network". Choosing doctors is part of the decision process.

Most probably, dental is under a separate policy and you might want to fork over some money for that. Don't worry, it's cheap. :)
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