HSA-Eligible Plan Higher Premiums

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Topic Author
rpd
Posts: 7
Joined: Fri Sep 28, 2018 11:52 am

HSA-Eligible Plan Higher Premiums

Post by rpd »

For some reason, the HSA-eligible plan premium through the ACA marketplace is $170 more per month for our family ($2,040 per year) than a non-HSA comparable plan with a slightly higher deductible. My wife and I are 54 and in relatively good health. If the premiums were equal we would sign up for the HSA-eligible plan...we're not worried about the high deductible. We plan on using this as a retirement account. Is there a good way to justify paying the higher premiums for the HSA plan?

Any advice would be appreciated. Thanks.
terran
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Re: HSA-Eligible Plan Higher Premiums

Post by terran »

This is pretty common -- the insurers know people like HSAs so they design two plans with one covering something small that disqualifies it from being HSA eligible. The only way to justify it is if the tax savings from the HSA contribution outweigh the extra premiums. Remember to account for any increase in the premium subsidies that the lower income from the HSA contribution can get you.
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Artful Dodger
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Re: HSA-Eligible Plan Higher Premiums

Post by Artful Dodger »

What you're saying doesn't make sense if they really are comparable plans. Are there some differences you're not noting? What is the deductible difference? Does the non-HSA plan have a higher out of pocket limit. Are the coinsurance levels different?
Walkure
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Re: HSA-Eligible Plan Higher Premiums

Post by Walkure »

There's basically no way it's worth it at $2,000+ more in premiums per year for similar coverage unless the subsidies are substantial. For a family that can contribute $7,750 for 2024, you'd have to save combined State+Fed taxes at a marginal rate of 25.8% just to break even on every dollar you put in. (Since it's an exchange plan, you don't have the option of avoiding payroll taxes through employer deductions, so that savings is out, too.) Are you maxing out the other tax-advantaged space available to you?
Topic Author
rpd
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Re: HSA-Eligible Plan Higher Premiums

Post by rpd »

Yes, we're maxing tax-advantages space.

The deductible is about $1,500 less for the HSA plan.
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Artful Dodger
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Re: HSA-Eligible Plan Higher Premiums

Post by Artful Dodger »

rpd wrote: Tue Apr 02, 2024 1:09 pm Yes, we're maxing tax-advantages space.

The deductible is about $1,500 less for the HSA plan.
$1500 is the Family deductible?

What is the out of pocket difference?

Coinsurance difference?

Other copays?
LotsaGray
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Re: HSA-Eligible Plan Higher Premiums

Post by LotsaGray »

Artful Dodger wrote: Tue Apr 02, 2024 1:15 pm
rpd wrote: Tue Apr 02, 2024 1:09 pm Yes, we're maxing tax-advantages space.

The deductible is about $1,500 less for the HSA plan.
$1500 is the Family deductible?

What is the out of pocket difference?

Coinsurance difference?

Other copays?
$1500 LESS. Less is a key word
Topic Author
rpd
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Joined: Fri Sep 28, 2018 11:52 am

Re: HSA-Eligible Plan Higher Premiums

Post by rpd »

Yes, it's $1,500 less.

Non-HSA Deductible: $9,450
HSA Deductible: $7,950

Out of pocket max is the same as the deductibles for each. It looks like nothing is covered before the deductible is met except preventative services.

I'm just trying to think it all through regarding current advantages as well as in retirement.

Thanks for the replies.
EricGold
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Re: HSA-Eligible Plan Higher Premiums

Post by EricGold »

rpd wrote: Tue Apr 02, 2024 12:41 pm For some reason, the HSA-eligible plan premium through the ACA marketplace is $170 more per month for our family ($2,040 per year) than a non-HSA comparable plan with a slightly higher deductible.
I noticed the same. I don't think it was always this way, but I don't have the records to be sure. It just seems like marketing to me, but I'm not an expert
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