Originally Posted by ginadog
We would plan to contribute the family maximum for sure.
Hubby’s HR person is all for the HSA and even does it with his family of 7! My HR person cannot fathom why anyone would not opt for the dual benefits and is insisting I meet with her.
That's unusual. Megacorp here is pushing HSA plan.
A lot of people were dubious and distrusting of Megacorp HR due to this "selling," but some of the engineer types came up with some pretty clever spreadsheets (with graphs) to show the effect I mention above.
- Rare doctor visits, low prescriptions: HSA wins
- Many doctor visits, many prescriptions: Traditional wins
- Catastrophic: HSA wins
There was a "knee" and "sweet spot" in the curve for those middle "traditional plan" wins. The spreadsheet took into effect copays, negotiated costs for the HDHP plan, the tax effect of the income reduction going into the HSA, etc. It was pretty cool, but of course might differ with other Megacorp plans.
Finally, the one thing the spreadsheet didn't take into account was if costs were paid out of regular funds (not HSA), and if the HSA was growing tax deferred. This is hard to quantify, but yet another part of the benefit we didn't even consider. (This would be +3 of the so called "triple tax advantage".)