Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Do I qualify to open an Health Savings Account?
Old 07-25-2019, 07:55 AM   #1
Dryer sheet aficionado
 
Join Date: Jun 2018
Posts: 38
Do I qualify to open an Health Savings Account?

I'm enrolled in a Bronze Plan with my company.
Deductible $3000/$6000 (individual/family)
Max out of pocket $6,000/$12000 (individual/family)

I see that for 2019 the definition of a high deductible plan is:
Minimum deductible $1,350/$2,700 (individual/family)
Maximum out of pocket $6,750/$13,500 (individual/family)

I'm assuming I need to be above the $1,350/$2,700 (individual/family) minimum deductible? I'm also assuming I need to be above the Max out of pocket as well? So I do not qualify?
Machine99 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 07-25-2019, 08:02 AM   #2
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,586
In addition to the deductible limits, the policy must also require you to meet all expenses until the deductible is met, with the exception of certain preventive care.



Many HSA eligible policies use "HSA" in the name. Is that the case here?
MichaelB is offline   Reply With Quote
Old 07-25-2019, 08:06 AM   #3
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 3,594
Quote:
Originally Posted by Machine99 View Post
I'm enrolled in a Bronze Plan with my company.
Deductible $3000/$6000 (individual/family)
Max out of pocket $6,000/$12000 (individual/family)

I see that for 2019 the definition of a high deductible plan is:
Minimum deductible $1,350/$2,700 (individual/family)
Maximum out of pocket $6,750/$13,500 (individual/family)

I'm assuming I need to be above the $1,350/$2,700 (individual/family) minimum deductible? I'm also assuming I need to be above the Max out of pocket as well? So I do not qualify?
If I am not mistaken, you have this backwards. You need to be below the out-of-pocket-maximum limit, not above.

-gauss
gauss is offline   Reply With Quote
Old 07-25-2019, 08:07 AM   #4
Thinks s/he gets paid by the post
Rianne's Avatar
 
Join Date: Aug 2017
Location: Champaign
Posts: 4,689
Yes, must say HSA in the name. I was looking at a bronze policy last year and the deductibles were high, @ $6K for each of us. It was not an HSA approved policy. I called our health equity company and asked, they gave me incorrect information. Told me, yes, the policy was qualified at that level of deductibles. I felt unsatisfied and called our insurance broker. She said it was NOT a qualified plan.
__________________
"Do not go where the path may lead, go instead where there is no path and leave a trail."

Ralph Waldo Emerson
Rianne is offline   Reply With Quote
Old 07-25-2019, 08:10 AM   #5
Dryer sheet aficionado
 
Join Date: Jun 2018
Posts: 38
Quote:
Originally Posted by MichaelB View Post
In addition to the deductible limits, the policy must also require you to meet all expenses until the deductible is met, with the exception of certain preventive care.



Many HSA eligible policies use "HSA" in the name. Is that the case here?
It does not have HSA in the name. Should I call United Healthcare and just ask them?
Machine99 is offline   Reply With Quote
Old 07-25-2019, 08:17 AM   #6
Thinks s/he gets paid by the post
Rianne's Avatar
 
Join Date: Aug 2017
Location: Champaign
Posts: 4,689
Quote:
Originally Posted by Machine99 View Post
It does not have HSA in the name. Should I call United Healthcare and just ask them?
Absolutely worth the call.
__________________
"Do not go where the path may lead, go instead where there is no path and leave a trail."

Ralph Waldo Emerson
Rianne is offline   Reply With Quote
Old 07-25-2019, 08:34 AM   #7
Moderator
Aerides's Avatar
 
Join Date: Nov 2015
Posts: 13,879
For sure call them, or you can probably see your plan details on healthcare.gov? The description usually makes it clear. If you aren't eligible for this year, be sure to look for that qualifier when re-upping for 2020.
Aerides is offline   Reply With Quote
Old 07-25-2019, 08:49 AM   #8
Thinks s/he gets paid by the post
 
Join Date: Jul 2015
Location: Beaverton
Posts: 1,382
Quote:
Originally Posted by Rianne View Post
Yes, must say HSA in the name. I was looking at a bronze policy last year and the deductibles were high, @ $6K for each of us. It was not an HSA approved policy. I called our health equity company and asked, they gave me incorrect information. Told me, yes, the policy was qualified at that level of deductibles. I felt unsatisfied and called our insurance broker. She said it was NOT a qualified plan.
Sorry but this is incorrect. You just have to meet the deductible criteria. Mine doesn't say HSA on it and I qualify for HSA.
__________________
Jump in, the water's warm.
Bir48die is offline   Reply With Quote
Old 07-25-2019, 08:58 AM   #9
Dryer sheet aficionado
 
Join Date: Jun 2018
Posts: 38
Well I called United Healthcare. Lady I spoke with had no clue what I was talking about and told me to call my company's benefits department. I call them and they were clueless as well.....
Machine99 is offline   Reply With Quote
Old 07-25-2019, 09:01 AM   #10
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,586
Quote:
Originally Posted by Machine99 View Post
Well I called United Healthcare. Lady I spoke with had no clue what I was talking about and told me to call my company's benefits department. I call them and they were clueless as well.....
Does the policy pay for any non-preventive health care before you've fully met the deductible? These would be expenses like a specialist visit, some lab work, etc. Something other than preventive care. Also, does it have any co-pay?
MichaelB is offline   Reply With Quote
Old 07-25-2019, 09:09 AM   #11
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
Machine99, this website may help: Health Savings Account FAQ - HSA Qualifying Plans
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 07-25-2019, 09:23 AM   #12
Dryer sheet aficionado
 
Join Date: Jun 2018
Posts: 38
Quote:
Originally Posted by MichaelB View Post
Does the policy pay for any non-preventive health care before you've fully met the deductible? These would be expenses like a specialist visit, some lab work, etc. Something other than preventive care. Also, does it have any co-pay?
BRONZE PLUS PLAN 
 In Network
Calendar Year Deductible Individual/Family$3,000 / $6,000
Medical Annual Outof-Pocket Maximum Individual/Family$6,000 / $12,000
Coinsurance60%
Annual checkups/physicals,mammograms, etc.100%
Phone or OnlineConsultation —provided by Teladoc100%
Primary CarePhysician (PCP)Office Visit60% coinsurance,after deductible
Specialist Office Visit 60% coinsurance,after deductible
Surgery (Inpatient or Outpatient Hospital)60% coinsurance,after deductible
Hospital Care60% coinsurance,after deductible
Emergency Room 60% coinsurance,after deductible
Urgent Care Clinic 60% coinsurance,after deductible
Machine99 is offline   Reply With Quote
Old 07-25-2019, 10:00 AM   #13
Dryer sheet aficionado
 
Join Date: Jun 2018
Posts: 38
I called Fidelity and they say I quality. So I guess I'm going to go ahead and open an account.
Machine99 is offline   Reply With Quote
Old 07-25-2019, 11:38 AM   #14
Thinks s/he gets paid by the post
 
Join Date: Aug 2010
Posts: 1,089
Quote:
Originally Posted by Machine99 View Post
I called Fidelity and they say I quality. So I guess I'm going to go ahead and open an account.
I hope you are correct so you can contribute the amount.

My old employer provided plan has HDHP as part of the name, and online sign up form indicates amount of payroll deduction each pay period, so I know it is HSA eligible.

Now we are using ACA. My ACA Bronze plan also has HDHP as part of the name. In plan summary, there is a table with an entry: Health Savings Account (HSA) eligible = Yes.

I would try to call the Insurance company again to make sure it is. If the line agent is not sure, ask to speak to the supervisor. HSA eligible plans will send 1099-SA for tax purpose. So, that might be another clue.
fh2000 is offline   Reply With Quote
Old 07-25-2019, 11:47 AM   #15
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
Quote:
Originally Posted by fh2000 View Post

My old employer provided plan has HDHP as part of the name, and online sign up form indicates amount of payroll deduction each pay period, so I know it is HSA eligible.

Now we are using ACA. My ACA Bronze plan also has HDHP as part of the name. In plan summary, there is a table with an entry: Health Savings Account (HSA) eligible = Yes.

I would try to call the Insurance company again to make sure it is. If the line agent is not sure, ask to speak to the supervisor. HSA eligible plans will send 1099-SA for tax purpose. So, that might be another clue.
+1

My experience says if a plan is HSA eligible it will say so in the name of the policy.

From the website I linked above:

Quote:
The health insurance company or plan administrator will provide a written statement verifying this [HSA] status. The words "qualifying high-deductible health plan" or a reference to IRC Section 223 will be included in the declaration page of the policy or in another official communication from the insurance company. If this documentation is not provided or available, it is NOT a qualifying plan.
__________________
Numbers is hard
REWahoo is offline   Reply With Quote
Old 07-25-2019, 12:26 PM   #16
Dryer sheet aficionado
 
Join Date: Jun 2018
Posts: 38
Thanks all,

Just chatted online with United Healthcare and they confirmed my bronze plan is considered High Deductible and I qualify to open an HSA.
Machine99 is offline   Reply With Quote
Old 07-25-2019, 12:58 PM   #17
Thinks s/he gets paid by the post
gauss's Avatar
 
Join Date: Aug 2011
Posts: 3,594
Quote:
Originally Posted by fh2000 View Post
I hope you are correct so you can contribute the amount.

...
I would try to call the Insurance company again to make sure it is. If the line agent is not sure, ask to speak to the supervisor. HSA eligible plans will send 1099-SA for tax purpose. So, that might be another clue.
Actually this is not quite the case.

It is the HSA administrator (ie bank, fidelity, etc.) where the money is invested that sends the 1099-SA, not the health insurance plan.
When I openend my most recent HSA account at Fidelity, all I needed to do was certify that I was elgible to have and/or to make contributions to an HSA. There was no third party verification.

If you really want to make sure that you are clean on this, read the requirements for a HI plan to qualify as HDHP in the IRS documentation.

Publication 968
Form 8869 Instructions

-gauss
gauss is offline   Reply With Quote
Old 07-26-2019, 07:08 AM   #18
Thinks s/he gets paid by the post
Rianne's Avatar
 
Join Date: Aug 2017
Location: Champaign
Posts: 4,689
Quote:
Originally Posted by Bir48die View Post
Sorry but this is incorrect. You just have to meet the deductible criteria. Mine doesn't say HSA on it and I qualify for HSA.
Correction: It said HDHP. The other plan was not HDHP/HSA approved.
__________________
"Do not go where the path may lead, go instead where there is no path and leave a trail."

Ralph Waldo Emerson
Rianne is offline   Reply With Quote
Old 07-26-2019, 08:02 AM   #19
Thinks s/he gets paid by the post
 
Join Date: Jan 2008
Posts: 1,653
When I was on an HDHP retiree plan through my former employer, the annual renewal confirmation stated that the plan qualified for an HSA. I needed this statement two years in a row when my Form 8889 was audited by the IRS.
jebmke is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Where to open a Health Savings Account and another question spncity FIRE and Money 32 01-03-2017 11:51 AM
Bank needs Credit Check to open a savings account?? Chuckanut Other topics 13 01-16-2015 09:55 AM
IRS announces 2014 health savings account and high-deductible health plan limits SumDay Health and Early Retirement 3 05-03-2013 03:36 PM
should i even open up a online high interest savings account if i only have $5,000? dooo42 FIRE and Money 3 04-07-2011 08:58 PM
Health Savings Account/Flexible Spending Account Bongybo Health and Early Retirement 5 07-26-2008 06:46 PM

» Quick Links

 
All times are GMT -6. The time now is 05:27 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.