HSA question

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captpete
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HSA question

Post by captpete » Mon Dec 03, 2018 10:05 pm

The IRS defines a HDHP as:

"A high deductible plan (HDHP) can be combined with a health savings account (HSA), allowing you to pay for certain medical expenses with money free from federal taxes. The IRS defines a high deductible health plan as any plan with a deductible of at least $1,350 for an individual or $2,700 for a family."
High Deductible Health Plan (HDHP) - HealthCare.gov Glossary ...
https://www.healthcare.gov/glossary/hig ... alth-plan/

I don't think my employer calls what we have a HDHP but the deductible is 2500 for just me, and the premiums are $200/month. I use the FSA at work as it is the only option but I keep hearing about the Fidelity HSA account and am wondering if this is something I can do with this?

Any one else in a similar situation

terran
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Re: HSA question

Post by terran » Mon Dec 03, 2018 10:52 pm

HSA eligible plans have other requirements such as not covering ANYTHING other than ACA mandated preventative care until the deductible is met. Insurers are usually pretty keen to let you know your plan is HSA eligible because it's a sought after feature. Not to say it's not possible that your plan is eligible, but it seems unlikely that it would be and they wouldn't make that very clear.

captpete
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Re: HSA question

Post by captpete » Tue Dec 04, 2018 10:19 am

terran wrote:
Mon Dec 03, 2018 10:52 pm
HSA eligible plans have other requirements such as not covering ANYTHING other than ACA mandated preventative care until the deductible is met. Insurers are usually pretty keen to let you know your plan is HSA eligible because it's a sought after feature. Not to say it's not possible that your plan is eligible, but it seems unlikely that it would be and they wouldn't make that very clear.
Thanks,

I wonder how I go about finding out this information, we do have FSA at work,which we use but I would love to get the 3000 tax sheltered in a HSA if I can...

Thanks again

terran
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Re: HSA question

Post by terran » Tue Dec 04, 2018 10:30 am

You can ask your employer and/or insurer, but I really doubt it's eligible if they're not making it really obvious. They usually make a pretty big deal about it since it's seen as a good thing (which it is).

ras4250
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Re: HSA question

Post by ras4250 » Tue Dec 04, 2018 11:26 am

Usually if you have the FSA you can’t contribute to the HSA.

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MP123
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Re: HSA question

Post by MP123 » Tue Dec 04, 2018 7:46 pm

ras4250 wrote:
Tue Dec 04, 2018 11:26 am
Usually if you have the FSA you can’t contribute to the HSA.
This is correct.

Also, if your health plan doesn't specifically say "HSA" in the name of the plan it almost certainly isn't eligible.

captpete
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Re: HSA question

Post by captpete » Wed Dec 05, 2018 7:09 am

so we just pay a high premium and a high deductible. If I were to use it for the family it goes to close to $700/ month plus the deductible...

Frustrating

Spirit Rider
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Re: HSA question

Post by Spirit Rider » Wed Dec 05, 2018 9:09 am

captpete wrote:
Tue Dec 04, 2018 10:19 am
I wonder how I go about finding out this information, we do have FSA at work,which we use but I would love to get the 3000 tax sheltered in a HSA if I can...
The fact that you can enroll in a General Purpose FSA virtually guarantees that your health insurance plan is not an HSA qualifying HDHP.

If either you or your spouse enroll in a General Purpose FSA it makes both of you ineligible for an HSA.

A company offering an HSA qualifying HDHP, would only allow you enroll in a Limited Purpose (dental/vision expenses) and/or a Post-Deductible FSA.

lstone19
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Re: HSA question

Post by lstone19 » Wed Dec 05, 2018 9:45 am

terran wrote:
Mon Dec 03, 2018 10:52 pm
HSA eligible plans have other requirements such as not covering ANYTHING other than ACA mandated preventative care until the deductible is met.
That's the key point. If it has a high deductible but you only pay a co-pay for an office visit or prescription drugs before the deductible is met, it's not an HSA-qualifying plan. You must be paying 100% of the cost (at the insurance company negotiated rate) until the deductible is met.
Insurers are usually pretty keen to let you know your plan is HSA eligible because it's a sought after feature. Not to say it's not possible that your plan is eligible, but it seems unlikely that it would be and they wouldn't make that very clear.
In general, true. But there are some 3rd party or broker sites who don't understand the value of HSAs so you have to dig deep to find out if they're HSA eligible.

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Edie
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Re: HSA question

Post by Edie » Wed Dec 05, 2018 10:17 am

lstone19 wrote:
Wed Dec 05, 2018 9:45 am
terran wrote:
Mon Dec 03, 2018 10:52 pm
HSA eligible plans have other requirements such as not covering ANYTHING other than ACA mandated preventative care until the deductible is met.
That's the key point. If it has a high deductible but you only pay a co-pay for an office visit or prescription drugs before the deductible is met, it's not an HSA-qualifying plan. You must be paying 100% of the cost (at the insurance company negotiated rate) until the deductible is met.
Insurers are usually pretty keen to let you know your plan is HSA eligible because it's a sought after feature. Not to say it's not possible that your plan is eligible, but it seems unlikely that it would be and they wouldn't make that very clear.
In general, true. But there are some 3rd party or broker sites who don't understand the value of HSAs so you have to dig deep to find out if they're HSA eligible.
I'm not positive that the underlined is true for all classes of drug. We have an HDHP with an HSA (marketed as such, all literature identifies it as such), but we only pay co-pays for my husband's diabetic drugs before our deductible, and full price for "non-life-saving" drugs like acne and psoriasis medications.

lstone19
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Re: HSA question

Post by lstone19 » Wed Dec 05, 2018 10:48 am

Edie wrote:
Wed Dec 05, 2018 10:17 am
lstone19 wrote:
Wed Dec 05, 2018 9:45 am
That's the key point. If it has a high deductible but you only pay a co-pay for an office visit or prescription drugs before the deductible is met, it's not an HSA-qualifying plan. You must be paying 100% of the cost (at the insurance company negotiated rate) until the deductible is met.
I'm not positive that the underlined is true for all classes of drug. We have an HDHP with an HSA (marketed as such, all literature identifies it as such), but we only pay co-pays for my husband's diabetic drugs before our deductible, and full price for "non-life-saving" drugs like acne and psoriasis medications.
Edie, now that you mention it, I believe you are correct. I'm not sure what drugs fall into that exception but it appears certain drugs, such as for diabetes, are considered preventative and therefore covered before the deductible is met.

Spirit Rider
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Re: HSA question

Post by Spirit Rider » Wed Dec 05, 2018 3:00 pm

Generally medicines that provide therapeutic treatment for chronic diseases/conditions are considered preventative healthcare. They can be reimbursed without regard to the minimum deductible.

This includes drugs for well known diseases/conditions such as diabetes, hypertension, cholesterol/triglyceride control, and other risk factors of heart disease/stroke and other less well known ones.

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beyou
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Re: HSA question

Post by beyou » Wed Dec 05, 2018 3:07 pm

Minor point of clarity :

Note you can have both FSA and HSA, but the FSA can only cover dental and vision, not medical expenses.
Called a "limited purpose" FSA.

If you have a general purpose FSA, you are likely in a non-compliant plan as far as HDHP HSA eligibility.

My firm offers both types of FSA, and an insurance plan that allows one or the other but not both on same insurance plan.
I elected HSA and decided to pass on the limited FSA (don't want to set aside use it or lose it $ for such a limited purpose).

captpete
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Re: HSA question

Post by captpete » Mon Dec 10, 2018 8:33 am

Ok, no HSA for me...

Thanks for all the responses.

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