Silver or Bronze? New wrinkle for me this year....

[BarbWire]

I buy my ACA insurance, no subsidies, from Florida Blue.

For the last four years I've had plan 1735 (Bronze with HSA) which has been suited me since I use almost no medical services and can fund the HSA. And in the past my Bronze premiums were also lower than premiums for any Silver plan.

(Interestingly, if I stick with the same 1735 plan, my 2021 premium at age 63 will be $30/month lower than for 2020 at 62. But I digress...)

This year I have the wrinkle that there is a Silver plan that has lower premiums than my Bronze plan.

plan : premium -- deductible -- out of pocket max

Bronze HSA : $775 -- $6850 -- $6850

Silver : $767 -- $5180 -- $8150

Despite the Silver having a lower monthly premium, I really see no reason to leave the Bronze HSA plan: I figure that if I have a real medical need it will blow quite quickly beyond $6850, and until then I have the assets to cover expenses if needed.

Is my logic sound?

 

[pb4uski]

in addition, with the HSA plan you can contribute to an HSA and get a tax benefit or provide yourself more headroom for Roth conversions.

 

[BarbWire]

Absolutely -- the ability to contribute to the HSA and lower taxable income is non-trivial, especially as I look ahead to means-testing for Medicare premiums. :-(

 

[Aerides]

Oh if the Silver doesn't also offer an HSA it would not even be a consideration for me. I always search on HSA plans only, and there is 1735 looking like the obvious choice so I re-up with that.

 

[BrianB]

A couple of thoughts:

The HSA option is really a big plus for us. It saves taxes and HSA contributions are one of the few MAGI-reducing options out there that don't require W-2 earned income.

Watch out for the coinsurance. For our plans in MN the Bronze HSA plans have 0% coinsurance. The Silver non-HSA plans have a 15% or 20% coinsurance. That is why your OOP maximum is higher than your deductible for the Silver option.

After a few years of very low health care spending, we have blown past the max OOP in 2020, and it looks like we will again in 2021. For us, the Bronze is actually cheaper total cost because of the additional coinsurance and higher premiums on the Silver plan.

A couple years ago someone here made a slick little spreadsheet that lets you compare total plan cost with premiums, deductibles, coinsurance and max OOP all included. I really like it, but I can't find the old thread. Maybe someone else can locate it?

BrianB

 

[BarbWire]

Right. Thanks everyone. For all the reasons you mention, my instinct is to continue with the Bronze HSA plan.

Right now my brain is fried from having to deal with a bunch of other stuff, so I thought I'd ping this group to confirm my logic of keeping the Bronze HSA before doing something stupid!

Decision made: stick with the Bronze HSA 1735.

Thanks!