Funding HSA's on a CSR Silver Plan

[ivinsfan]

Someone has asked me about the subject. I think it was talked about here but we now have so many HSA threads I can't find it.

If you have a Sliver HSA exchange plan and hit a CSR level say 225% of the FPL...can you still fund an HSA as your deductible and OOP costs will be lower?

I've tried Mr Google without much success.

 

[audreyh1]

I believe the answer was no.

 

[ivinsfan]

I believe the answer was no.

That's what I thought too, but the insurance has it listed as a Sliver HSA plan with cost sharing. That seems confusing. It's not cut and dried on the website as to if the HSA portion goes away.Perhaps they just have it coded that way so that people know it's cost share eligible.

 

[MichaelB]

HSA Bank says no. HSA Eligibility – Health Exchanges - HSA Bank

If you qualify for reduced cost sharing*, you may not be eligible to make contributions to an HSA.

 

[Sue J]

In 2015 we had an ACA bronze plan with a narrow network that had a deductible of $6450 but included 3 free PCP visits. It was HSA compatible, which made me ask lots of questions. HealthCare.gov and the insurer both confirmed that it was HSA compatible.

I asked my physician how this plan worked and she told me that it was treated like an HMO in that the insurer paid a lump sum for the total of the subscribers in the practice and that covered the 3 free visits.

My understanding of an HSA compatible HDHP is that the member pays for everything until the deductible is met so I found this interesting as a way to offer free visits. It was only for your Primary Care Physician.

For 2016 this plan increased the price and then dropped my doctor's practice from the narrow network. I thought that the practice left the narrow network. My doctor told me the insurer excluded them. We ended up moving to another insurer and we both had to find new doctors.

 

[ivinsfan]

MichaelB that was a good link and I take it to mean to depends on the level of your subsidy if your deductible is higher then 1250/2500 you could still be eligible to fund your HSA..


so it would depend on where your income is . I'm guessing 225% not eligible .. Medica lists the CS at 94%...87% and 73%... at 73 your deductible is 1300/2600...so that should get you and HSA....question is what income level is a 73% cost share.

 

[MichaelB]

MichaelB that was a good link and I take it to mean to depends on the level of your subsidy if your deductible is higher then 1250/2500 you could still be eligible to fund your HSA..


so it would depend on where your income is . I'm guessing 225% not eligible .. Medica lists the CS at 94%...87% and 73%... at 73 your deductible is 1300/2600...so that should get you and HSA....question is what income level is a 73% cost share.

This sounds logical. I do recall a thread discussion that concluded HSA policies were eligible for premium tax credits, so there would be no reason a policy that benefits from CSR could also be HSA, as long as all HSA conditions are met.

The 94/87/73 are the actuarial values for cost sharing, and the 73% corresponds to income between 201%-250% of the FPL. (see pages 14-16 here)

 

[RunningBum]

A Sliver plan? Ouch, sounds painful! Not under the nail, I hope, those are the worst! Who would buy a plan for this?

Maybe a mod can correct the spelling in the title, so it's more easily found with a search later?

 

[ivinsfan]

A Sliver plan? Ouch, sounds painful! Not under the nail, I hope, those are the worst! Who would buy a plan for this?

Maybe a mod can correct the spelling in the title, so it's more easily found with a search later?

I'm happy you caught my fast fingers..but...don't really get your sense of humor..I guess the spelling police don't have to be polite...a simple comment would have done the trick.

 

[MichaelB]

Thread title looks fine to me

 

[MBSC]

There is not much reduction in cost sharing between 201%-250% FPL. If the plan still meets the HSA eligibility criteria AFTER the reductions are applied, then it remains HSA eligible.

2018 deductible and MOOP limits for HSA eligibility AFTER reductions.

Individual:
$1,350 minimum deductible (up from $1,300)
$6,650 maximum out-of-pocket (up from $6,550)

Family:
$2,700 minimum deductible (up from $2,600)
$13,300 maximum out-of-pocket (up from $13,100)

If the cost-sharing subsidies would reduce the deductible to below the minimum for HSA-qualified plans, people generally won’t be able to contribute to an HSA in those circumstances, according to a Treasury Department spokesperson.

“For purposes of a health savings account, the cost-sharing reduction is considered in determining the deductible of the plan,” the spokesperson said.

Reference: https://khn.org/news/andrews-readers-ask-how-do-marketplace-plans-differ-from-others/

 

[ivinsfan]

This sounds logical. I do recall a thread discussion that concluded HSA policies were eligible for premium tax credits, so there would be no reason a policy that benefits from CSR could also be HSA, as long as all HSA conditions are met.

The 94/87/73 are the actuarial values for cost sharing, and the 73% corresponds to income between 201%-250% of the FPL. (see pages 14-16 here)

You're the man, so many details at your fingertips.

 

[ivinsfan]

Just recheck the Medica 2018 Silver HSA and at 73% the deductible is 1300 which means no soup for you on the HSA..