To HSA or not?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
pepperz
Posts: 210
Joined: Sun Jan 24, 2016 7:13 pm

To HSA or not?

Post by pepperz » Sat Feb 24, 2018 2:30 am

We are switching health insurance from individual plan on exchange to company sponsored.

Options:

Can select an HSA plan with Blue Cross with $4500 deductible.

Or Blue Cross Silver plan with $500 deductible.

Usually I would go with HSA without thinking twice but we are (hopefully) planning on having a baby maybe January of 2019... so a pregnancy / birth would probably use our entire $4500 deductible, right?

At which point does the non-HSA plan make more sense?

mega317
Posts: 2015
Joined: Tue Apr 19, 2016 10:55 am

Re: To HSA or not?

Post by mega317 » Sat Feb 24, 2018 4:51 am

And that's the million dollar question. You have to carefully estimate your own expenses. We can't begin to do that for you, and good luck because you won't be able to get a perfectly accurate number even with a lot of research.

I decided to delay moving to a HDHP until the year after our last child was born.

motorcyclesarecool
Posts: 352
Joined: Sun Dec 14, 2014 7:39 am

Re: To HSA or not?

Post by motorcyclesarecool » Sat Feb 24, 2018 6:12 am

pepperz wrote:
Sat Feb 24, 2018 2:30 am
Usually I would go with HSA without thinking twice but we are (hopefully) planning on having a baby maybe January of 2019... so a pregnancy / birth would probably use our entire $4500 deductible, right?

At which point does the non-HSA plan make more sense?
Get the plan brochure and look up the maternity benefit. Some plans pay 100% of maternity expenses after you meet the deductible. Compare total annual outlay including premiums and deductibles for both plans.

If HDHP would be through an employer, do they kick in $$ to the account as a sweetener? Factor that in. Call around to different obstetricians and ask if they can provide an estimate of what they charge insurance after all “discounts” for an uncomplicated delivery. We switched OB for our second kid and OB number two included it in their welcome packet. You’re going to have to do some homework.
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.

Olemiss540
Posts: 468
Joined: Fri Aug 18, 2017 8:46 pm

Re: To HSA or not?

Post by Olemiss540 » Sat Feb 24, 2018 7:01 am

motorcyclesarecool wrote:
Sat Feb 24, 2018 6:12 am
pepperz wrote:
Sat Feb 24, 2018 2:30 am
Usually I would go with HSA without thinking twice but we are (hopefully) planning on having a baby maybe January of 2019... so a pregnancy / birth would probably use our entire $4500 deductible, right?

At which point does the non-HSA plan make more sense?
Get the plan brochure and look up the maternity benefit. Some plans pay 100% of maternity expenses after you meet the deductible. Compare total annual outlay including premiums and deductibles for both plans.

If HDHP would be through an employer, do they kick in $$ to the account as a sweetener? Factor that in. Call around to different obstetricians and ask if they can provide an estimate of what they charge insurance after all “discounts” for an uncomplicated delivery. We switched OB for our second kid and OB number two included it in their welcome packet. You’re going to have to do some homework.
This +1. Have to calculate premium difference and tax savings for hsa contributions to decrease the OOP costs.
I hold index funds because I do not overestimate my ability to pick stocks OR stock pickers.

User avatar
samsoes
Posts: 717
Joined: Tue Mar 05, 2013 9:12 am
Location: Northeast Rat Race

Re: To HSA or not?

Post by samsoes » Sat Feb 24, 2018 8:00 am

HDHP deductibles are usually 2-tier - per person and per family. Be sure to include the estimated medical expenses for the baby's father, and for the baby his/herself. Your out of pocket expenses may be higher than anticipated due to the per person deductibles.
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. | (Avatar is the statue of Gen. Warren at Little Round Top @ Gettysburg National Military Park.)

lstone19
Posts: 109
Joined: Fri Nov 03, 2017 3:33 pm

Re: To HSA or not?

Post by lstone19 » Sat Feb 24, 2018 8:19 am

samsoes wrote:
Sat Feb 24, 2018 8:00 am
HDHP deductibles are usually 2-tier - per person and per family. Be sure to include the estimated medical expenses for the baby's father, and for the baby his/herself. Your out of pocket expenses may be higher than anticipated due to the per person deductibles.
OTOH, through two different employers and at least four different insurers/plans, our HDHP deductible has always been only per family (all plan documents have always said individual deductible applies only to individual plans). But out of pocket maximum has been both per person and per family with the family OOP maximum twice the individual (a person can hit there OOP max. before others in the family but once the family max. is hit, all members of the family are now covered 100%).

AkwardDoct@rd
Posts: 33
Joined: Tue Aug 11, 2015 11:59 pm

Re: To HSA or not?

Post by AkwardDoct@rd » Sat Feb 24, 2018 8:50 am

I would not do the HSA. Deliveries can get expensive. Just wait for a year

haban01
Posts: 654
Joined: Thu Mar 01, 2007 9:55 pm
Location: Wisconsin

Re: To HSA or not?

Post by haban01 » Sat Feb 24, 2018 9:21 am

Yes. You will blow up the $4500.00 deductible to start. What is the copay after that and then max out of pocket. Everything in healthcare is going up. If the premium is significantly less it may make sense if you then max out the HSA. The 500 deductible is almost unheard of today. I figure baby 2 is going to be about 7k. 5400 deductible (2709 embedded x 2) and then a 10-20% copay after. Max OP is 13k.
Eric Haban | | "Stay the Course" | "Press on Regardless" | | Wisconsin Bogleheads Chapter Coordinator

Bacchus01
Posts: 1524
Joined: Mon Dec 24, 2012 9:35 pm

Re: To HSA or not?

Post by Bacchus01 » Sat Feb 24, 2018 9:22 am

Not enough info to decide. What are your premiums? What is your marginal tax bracket? What is your max OOP? Is the employer kicking anything to your HSA? Know all that, then assume $10K in expenses for a delivery and see how that works in each scenario in a tax adjusted basis. You may be better off in the hdhp.

Post Reply