HSAs vs Traditional plans

[detlef]

My wife and I are trying to decide which version of health plan to accept from her employer. I've done some research but am curious about a few things. Of course, I turn to the Huddle.

 

Most data seems to support the fact that we're the type of people who would benefit from HSAs, we're pretty much healthy, don't have any cronic issues and aren't on any medications. We're also financially solvent enough to be able to deal if something unexpected happened and we were forced to pay up to our deductible before we'd been in it long enough to build up our balance. Obviously it would suck, but it wouldn't ruin us.

 

Here's what I am trying to determine before we go this way and I would like to hear from any of you with specific experience:

 

I understand that insurance companies negotiate lower prices for most services. Are the out of pocket expenses made by HSA holders at that lower price?

 

Because we've always been on traditional plans, we're rather insulated from the costs associated with health care so I'm having a hard time determining what the break even point will be assuming a normal year with perhaps one unexpected medical issue (moderate injury, kidney stone, etc). The plan offered by my wife's employer covers preventative office visits including OB/GYN at 100% deductible waived. Our deductable otherwise is $5K

 

Between how much less we'll have to pay for the coverage and her employer's contribution to the plan, the difference per year is about $3K.

 

I appreciate any insight.

[TheShiznit]

My wife and I are trying to decide which version of health plan to accept from her employer. I've done some research but am curious about a few things. Of course, I turn to the Huddle.

 

Most data seems to support the fact that we're the type of people who would benefit from HSAs, we're pretty much healthy, don't have any cronic issues and aren't on any medications. We're also financially solvent enough to be able to deal if something unexpected happened and we were forced to pay up to our deductible before we'd been in it long enough to build up our balance. Obviously it would suck, but it wouldn't ruin us.

 

Here's what I am trying to determine before we go this way and I would like to hear from any of you with specific experience:

 

I understand that insurance companies negotiate lower prices for most services. Are the out of pocket expenses made by HSA holders at that lower price?

 

Because we've always been on traditional plans, we're rather insulated from the costs associated with health care so I'm having a hard time determining what the break even point will be assuming a normal year with perhaps one unexpected medical issue (moderate injury, kidney stone, etc). The plan offered by my wife's employer covers preventative office visits including OB/GYN at 100% deductible waived. Our deductable otherwise is $5K

 

Between how much less we'll have to pay for the coverage and her employer's contribution to the plan, the difference per year is about $3K.

 

I appreciate any insight.

 

Go with the HSA. You are on the right track. I sell about 50 health plans per year. Do one thing though...pick the HSA plan that has 100% coinsurance coverage after your deductible is met. That is how some HSA group plans sucker participants in. Also, you don't ever really have to fund the HSA account unless you want to. I would as it could act as another spot to put money for retirement....and HSA account can convert to a regular IRA at 59 1/2. PM me with the company and the particulars of the plan. But, figure how often you went to the doctor last year and how many Rx scripts you got. Add in the copays of the Traditional PPO plan and throw in the cost of copays and what not....and if your total savings is 3K, then you will have your dedcutible saved in a year and a half. Also, you will get the negotiated rates for the doctor...you are still utilizing the PPO network after all. Like I said, PM me and I will help out anyway I can.

[Puddy]

Good info Shiznit.

 

My company offered an HSA for the first time this year. Our deductible is 3K. Significantly higher than the 1k we had with our traditional plan. But everything is covered at 100% after meeting the deductible. I liked the idea of 3k being my ceiling on health care costs (outside of my premiums) for the year. Of course, the idea behind these plans is for all of us to save money for medical expenses when we retire. Think of it as an IRA for medical expenses. If you fully fund your HSA each year, i.e. 5k, but only use a portion of that during the current year, the remainder carries over year after year until you reach retirement age. The idea makes a lot of sense. We will have our highest medical bills in our advanced age. I like the idea of having a "medical" IRA to help offset those costs instead of utilizing my normal retirement funds (IRA's. 401k's, etc.) to pay for that.