Need Info for GEHA HDHP Insurance Plan for San Francisco

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wangy26
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Need Info for GEHA HDHP Insurance Plan for San Francisco

Post by wangy26 » Wed Dec 04, 2019 5:42 pm

We currently have GEHA HDHP insurance plan and live in MD. The plan seems work for us. Our family doctors are in network and we are generally healthy. We plan to retire next year and move to CA in March 2020. I understand that GEHA HDHD is a national wide plan and we can keep the same plan after moving. I just don’t know how big the network is in San Francisco for this plan. How easy or difficult to find doctors there that will accept this plan? Any information in this regard will be greatly appreciated!

Tdubs
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Re: Need Info for GEHA HDHP Insurance Plan for San Francisco

Post by Tdubs » Wed Dec 04, 2019 5:49 pm

wangy26 wrote:
Wed Dec 04, 2019 5:42 pm
We currently have GEHA HDHP insurance plan and live in MD. The plan seems work for us. Our family doctors are in network and we are generally healthy. We plan to retire next year and move to CA in March 2020. I understand that GEHA HDHD is a national wide plan and we can keep the same plan after moving. I just don’t know how big the network is in San Francisco for this plan. How easy or difficult to find doctors there that will accept this plan? Any information in this regard will be greatly appreciated!
You can try Checkbook's feature to search for doctors in your new zip code, though I haven't always found it reliable.

Are you sure GEHA HDHP will still serve your needs in retirement? It is certainly a good option when paired with an HSA, but you won't be able to do that after you stop working.

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grabiner
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Re: Need Info for GEHA HDHP Insurance Plan for San Francisco

Post by grabiner » Wed Dec 04, 2019 9:46 pm

Tdubs wrote:
Wed Dec 04, 2019 5:49 pm
Are you sure GEHA HDHP will still serve your needs in retirement? It is certainly a good option when paired with an HSA, but you won't be able to do that after you stop working.
You can still contribute to the HSA after retiring (until you start Medicare). You can't contribute by payroll deduction when there is no payroll, but you can write a check to the HSA provider and deduct that amount from your taxes.

Note that CA does not recognize HSAs. If you plan to move to CA, sell all the stock in your HSA before you move, so that CA will not tax the capital gain. (If you have taxable carryover losses, this doesn't matter, as CA will offset the loss with the gain whether you sell before or after moving.) You might invest the HSA in TIPS so that the gains will be exempt from CA tax.
Wiki David Grabiner

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wangy26
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Re: Need Info for GEHA HDHP Insurance Plan for San Francisco

Post by wangy26 » Wed Dec 04, 2019 11:39 pm

Thanks very much for the info. Now I am really confused. I understand that you can't deduct CA state tax when contribute money to HSA as an employee. But I thought that money in the HSA account (including capital gain part) can be used for any medical expense without paying any tax. Did I miss something?

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grabiner
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Re: Need Info for GEHA HDHP Insurance Plan for San Francisco

Post by grabiner » Wed Dec 04, 2019 11:47 pm

wangy26 wrote:
Wed Dec 04, 2019 11:39 pm
Thanks very much for the info. Now I am really confused. I understand that you can't deduct CA state tax when contribute money to HSA as an employee. But I thought that money in the HSA account (including capital gain part) can be used for any medical expense without paying any tax. Did I miss something?
CA doesn't recognize HSAs; for CA tax purposes, an HSA is just a bank or brokerage account. Therefore, you pay CA tax on any income (except Treasury interest) earned within the HSA. You pay no CA tax on withdrawals from the HSA, even if the withdrawal is not qualified for federal tax purposes. But if you have to sell for a capital gain in order to make the withdrawal, you pay CA tax on that capital gain.
Wiki David Grabiner

nalor511
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Re: Need Info for GEHA HDHP Insurance Plan for San Francisco

Post by nalor511 » Thu Dec 05, 2019 2:20 am

To see if you can keep your current plan (the network being national means nothing), go to coveredca.com , you will see plan choices and costs, and you can find links to the places to find network doctors for each plan. assuming you want aca subsidies, that is.

GiannaLuna
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Re: Need Info for GEHA HDHP Insurance Plan for San Francisco

Post by GiannaLuna » Thu Dec 05, 2019 7:14 am

CA doesn't recognize HSAs; for CA tax purposes, an HSA is just a bank or brokerage account. Therefore, you pay CA tax on any income (except Treasury interest) earned within the HSA. You pay no CA tax on withdrawals from the HSA, even if the withdrawal is not qualified for federal tax purposes. But if you have to sell for a capital gain in order to make the withdrawal, you pay CA tax on that capital gain.

Would there be a place to go to see a list of states that do not recognize HSAs?

Thank you.

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grabiner
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Re: Need Info for GEHA HDHP Insurance Plan for San Francisco

Post by grabiner » Thu Dec 05, 2019 8:41 pm

GiannaLuna wrote:
Thu Dec 05, 2019 7:14 am
CA doesn't recognize HSAs; for CA tax purposes, an HSA is just a bank or brokerage account. Therefore, you pay CA tax on any income (except Treasury interest) earned within the HSA. You pay no CA tax on withdrawals from the HSA, even if the withdrawal is not qualified for federal tax purposes. But if you have to sell for a capital gain in order to make the withdrawal, you pay CA tax on that capital gain.

Would there be a place to go to see a list of states that do not recognize HSAs?
CA and NJ are the only states that don't recognize HSAs; there is also no state benefit from HSAs in states with no income tax.

State income taxes on the wiki is a summary written by Bogleheads of the tax differences between states, but it covers only 13 states, mostly larger ones. Individual Income Tax Provisions in the States is a good summary of the different income tax provisions across all states, although it doesn't always go into detail.

You can also check the tax instructions for your own state tax bureau.
Wiki David Grabiner

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