Question on Insurance - Move wife to separate plan?

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aadwen
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Joined: Sat Dec 05, 2009 12:42 am

Question on Insurance - Move wife to separate plan?

Post by aadwen » Sun Aug 12, 2018 1:59 pm

Wife's school district covers her insurance premium, well all but $6 per month.

Right now we are on a HSA through my work as a family. Should we consider moving her off?

Would result in an increased in maximum out of pocket (15255 vs 12334) - $2921 increase

Would result in an immediate savings of $2079 (3705 vs 5784)

What are your thoughts? I would realize the $2079 savings 100% of the time due to premium deltas, but would have the risk of realizing a higher deductible if something catastrophic happened. The way I have plotted the HSA + Wife on TRS is probably flawed as well, since I am simply adding two curves together, when in reality the heathcare costs would be hit at a ratioed amount between the wife and the me+kids, because I am effectively doubling the impact right now, but that would involve massive rework to my tables. The crossover point is @ $2000 right now, but that is likely much higher.

I have plotted the cost of HSA family (my work), HSA Employee - kids (my work), HSA w/ Wife on TRS, TRS for wife, and if the wife put our entire family on insurance (horrible option).

I am adding the HSA Employee + Kids to the TRS Active Care 1 to create the HSA + Wife on TRS Activecare 1.

Thanks!
Had to link the Imugr, our forum couldn't determine the dimensions of the image..

https://imgur.com/a/FX1EX7O

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dm200
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Location: Washington DC area

Re: Question on Insurance - Move wife to separate plan?

Post by dm200 » Sun Aug 12, 2018 2:40 pm

aadwen wrote:
Sun Aug 12, 2018 1:59 pm
Wife's school district covers her insurance premium, well all but $6 per month.
Right now we are on a HSA through my work as a family. Should we consider moving her off?

Would result in an increased in maximum out of pocket (15255 vs 12334) - $2921 increase

Would result in an immediate savings of $2079 (3705 vs 5784)
What are your thoughts? I would realize the $2079 savings 100% of the time due to premium deltas, but would have the risk of realizing a higher deductible if something catastrophic happened. The way I have plotted the HSA + Wife on TRS is probably flawed as well, since I am simply adding two curves together, when in reality the heathcare costs would be hit at a ratioed amount between the wife and the me+kids, because I am effectively doubling the impact right now, but that would involve massive rework to my tables. The crossover point is @ $2000 right now, but that is likely much higher.
I have plotted the cost of HSA family (my work), HSA Employee - kids (my work), HSA w/ Wife on TRS, TRS for wife, and if the wife put our entire family on insurance (horrible option).
I am adding the HSA Employee + Kids to the TRS Active Care 1 to create the HSA + Wife on TRS Activecare 1.
Thanks!
Had to link the Imugr, our forum couldn't determine the dimensions of the image..
https://imgur.com/a/FX1EX7O
Am I correct that the max out of pocket is due to wife's plan having a max out of pocket?

To me the sure thing savings of $2,079 every year vastly overrides the relatively small (and unlikely) max out of pocket risk.

aadwen
Posts: 152
Joined: Sat Dec 05, 2009 12:42 am

Re: Question on Insurance - Move wife to separate plan?

Post by aadwen » Sun Aug 12, 2018 4:36 pm

Correct

Max out of pocket for me and kids is 12334

Me + kids 8533, Wife 6722 = 15255

Thanks!

aadwen
Posts: 152
Joined: Sat Dec 05, 2009 12:42 am

Re: Question on Insurance - Move wife to separate plan?

Post by aadwen » Sun Aug 12, 2018 9:17 pm

any other opinions?

AlphaLess
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Joined: Fri Sep 29, 2017 11:38 pm

Re: Question on Insurance - Move wife to separate plan?

Post by AlphaLess » Sun Aug 12, 2018 10:03 pm

aadwen wrote:
Sun Aug 12, 2018 1:59 pm
Would result in an immediate savings of $2079 (3705 vs 5784)

In the light of $6 a month premium for wife on here plan, where is the 2079 coming from?

Iridium
Posts: 218
Joined: Thu May 19, 2016 10:49 am

Re: Question on Insurance - Move wife to separate plan?

Post by Iridium » Sun Aug 12, 2018 11:40 pm

aadwen wrote:
Sun Aug 12, 2018 9:17 pm
any other opinions?
Almost certainly a winner. However, it is not hitting out of pocket max that will get you (2 members of your family would have to suffer catastrophes), it will be the fact that wife's spending will no longer count against your deductible. Still a likely winner, assuming wife has less than $2k health cost on average.

Note: There may be some weird things that happen if your wife signs up for an FSA. Be sure to research it before doing so.

Beyond the financials: is the coverage good? Allows out of network? Has a good network? Your doctors are in both?

aadwen
Posts: 152
Joined: Sat Dec 05, 2009 12:42 am

Re: Question on Insurance - Move wife to separate plan?

Post by aadwen » Mon Aug 13, 2018 8:47 am

AlphaLess wrote:
Sun Aug 12, 2018 10:03 pm
aadwen wrote:
Sun Aug 12, 2018 1:59 pm
Would result in an immediate savings of $2079 (3705 vs 5784)

In the light of $6 a month premium for wife on here plan, where is the 2079 coming from?
Delta between my employee plus kids, vs entire family healthcare cost.

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