Open Enrollment at work; they split the HSA into two options now

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stimulacra
Posts: 99
Joined: Wed Dec 21, 2016 3:50 pm
Location: Houston

Open Enrollment at work; they split the HSA into two options now

Post by stimulacra » Tue Nov 14, 2017 3:06 am

Had an HSA at work that's worked out pretty well and now for 2018 it looks like they split it into two options.

Saver HSA
Company contribution (individual/family): $600 / $1,200
Preventative care: $0 with no deductible
Deductible (individual/family): $3,500 / $7,000
Out-of-pocket maximum (individual/family): $3,500 / $7,000
Co-insurance: $0 after deductible

Choice HSA
Company contribution (individual/family): $500 / $1,000
Preventative care: $0 with no deductible
Deductible (individual/family): $1,750 / $3,500
Out-of-pocket maximum (individual/family): $3,500 / $7,000
Co-insurance: 20% after deductible

Looks like the premium is about the same.
Trying to see which option would be the best option for my circumstance:

Age: 40, healthy I probably go to the doctor 2-3 times a year for checkup, blood work and the odd symptom I want checked out.
Dependents: 7 year old daughter with mild asthma
My out of pocket on a typical year is probably under $2k.

Seems like if I was a light to moderate consumer of healthcare services going forward, the Choice HSA would be the better more flexible bet.

The Saver HSA plan would work better if I was planning on consuming VERY little healthcare services or wanted to guard against a significant medical bill (in excess of $20-30k).

What's the best way to calculate the financial impact of likely scenarios? Based on the company contribution, it looks like they're wanting to nudge employees over to the Saver HSA plan.

nps
Posts: 433
Joined: Thu Dec 04, 2014 10:18 am

Re: Open Enrollment at work; they split the HSA into two options now

Post by nps » Tue Nov 14, 2017 7:42 am

The extra $200/mo in HSA contributions means you would be better off with saver up to $6,500 in out of pocket expenses against the deductible. Above $6,500 you would start out slightly worse off in saver (max $400 worse off at $7,000 expenses), then the difference would shrink and favor saver again after $9,000 expenses. With max risk of only $400 I would go with the saver, assuming the medical networks were the same.

overthought
Posts: 109
Joined: Tue Oct 17, 2017 3:44 am

Re: Open Enrollment at work; they split the HSA into two options now

Post by overthought » Tue Nov 14, 2017 12:38 pm

nps wrote:
Tue Nov 14, 2017 7:42 am
The extra $200/mo in HSA contributions means you would be better off with saver up to $6,500 in out of pocket expenses against the deductible. Above $6,500 you would start out slightly worse off in saver (max $400 worse off at $7,000 expenses), then the difference would shrink and favor saver again after $9,000 expenses. With max risk of only $400 I would go with the saver, assuming the medical networks were the same.
In my experience, that company contribution is yearly, not monthly (monthly would hit contribution limits halfway through the year). My previous employer contributed $1000/year for family; my new employer contributes $1500/year.

IMO medical insurance serves two main purposes these days: to knock 90% off the sticker price for medical care, and to prevent big-ticket health issues (cancer, major surgery, etc.) from causing unnecessary economic hardship. Assuming both plans had networks that covered your medical providers of choice, with a $7k OOP max they are equivalent. Further, with after-discount medical bills less than $3500/year, or more than $21,000/year, the plans are identical. If you have exactly $7k in after-discount bills, though, you would pay ~$2400 more with the Saver plan.

So yeah, I'd go with the Choice HSA. Significant risk of $2400 downside in return for $200/year isn't super appealing to me. You can still contribute the missing $200 yourself and will come out ahead in most cases.

stimulacra
Posts: 99
Joined: Wed Dec 21, 2016 3:50 pm
Location: Houston

Re: Open Enrollment at work; they split the HSA into two options now

Post by stimulacra » Tue Nov 14, 2017 5:05 pm

Thank you everyone for the response.

Yes the employer match amount is annual, not monthly contribution.

I'm leaning towards the Choice HSA now. Need to check out some other items before the deadline of Dec 1.

Thanks again.

nps
Posts: 433
Joined: Thu Dec 04, 2014 10:18 am

Re: Open Enrollment at work; they split the HSA into two options now

Post by nps » Tue Nov 14, 2017 6:35 pm

Of course, not per month. Must drink more coffee :happy

Agree, it definitely does not seem worth $200 per year

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