Should I use this HSA plan?

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nerdmaster
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Joined: Thu Nov 07, 2019 9:51 am

Should I use this HSA plan?

Post by nerdmaster » Thu Nov 07, 2019 10:21 am

I've been salivating for years about having an HSA option, now my employer is offering one and it doesn't seem that appealing.

They contribute nothing to the account for you. HSA account is with "HSA Bank." There do not seem to be any fees, they seem to offer Vanguard funds (still checking on what exactly)

The cost to participate is $656/month for family (vs. $423 for a basic regular insurance option with a $2000 deductible and same out of pocket max, which charges copays and percentages up to the deductible). Then of course you fund the HSA yourself up to $7100/year.

$4000 family deductible. $8000 annual family out of pocket maximum. preventive care visits free, other visits you pay full price until the deductible, then a percentage.

We would plan to fully fund it each year and not spend any of it until retirement.

I know there is not a right or wrong answer to this, and I'm not sure I've given you enough info to answer, but I'm just wondering what others might do, and how to approach the calculation.

We are maxing out 403b/401k/457 etc.

Thanks for any input!

rivercrosser
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Re: Should I use this HSA plan?

Post by rivercrosser » Thu Nov 07, 2019 12:06 pm

If your both healthy and don't use it heavy maybe. But only if you max out the tax free contributions like you said. I didn't really have a choice where I worked. They put in a 1000.00 for me last year and I put in 7000.00 (Im older).

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samsoes
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Re: Should I use this HSA plan?

Post by samsoes » Thu Nov 07, 2019 1:24 pm

The "basic" insurance option is less expensive than the HDHP/HSA? That's bizarre. My old Megacorp heavily encouraged HDHP's (with HSA) by making them free for single employees, and substantially cheaper for those with spouses and kids. Plus they contributed significantly into the HSA.

From what you've posted, I vote forgetaboutit. Not worth it.
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stoptothink
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Re: Should I use this HSA plan?

Post by stoptothink » Thu Nov 07, 2019 1:29 pm

samsoes wrote:
Thu Nov 07, 2019 1:24 pm
The "basic" insurance option is more expensive than the HSA? That's bizarre. My old Megacorp heavily encouraged HSA's by making them free for single employees, and substantially cheaper for those with spouses and kids.
We have 3 options at my employer, with the HDHP being the most expensive, and covers the least (obviously). I have no clue why this is. Thankfully my wife has similar options and her employer covers the entire premium. If we were on my company's plan I'm not sure it would make financial sense to be on the HDHP.

deltaneutral83
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Re: Should I use this HSA plan?

Post by deltaneutral83 » Thu Nov 07, 2019 1:35 pm

OP it doesn't make much sense if you are paying $233 more per month to have significantly higher deductible and OOP max. That annual premium differnece alone is $2,796 which is 70% of the way to your out of pocket max ($4k) on the PPO. Be sure to double check your employers literature on this. The PPO offered is pretty solid though with a $4k out of pocket max on $423 in monthly premiums for a family and of course all the other perks of a PPO.

Topic Author
nerdmaster
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Joined: Thu Nov 07, 2019 9:51 am

Re: Should I use this HSA plan?

Post by nerdmaster » Thu Nov 07, 2019 1:45 pm

Yeah that was my main reaction when I looked at the price. I always thought HDHPs were supposed to be cheaper than regular insurance, not more.

pwrdwnsys
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Re: Should I use this HSA plan?

Post by pwrdwnsys » Thu Nov 07, 2019 2:25 pm

nerdmaster wrote:
Thu Nov 07, 2019 1:45 pm
Yeah that was my main reaction when I looked at the price. I always thought HDHPs were supposed to be cheaper than regular insurance, not more.
Check the details of what is covered under each plan. I had a similar experience at a former employer. It turns out, the less expensive PPO plan did not cover hospitalization - at all!

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