Thinking about the HSA plan but my kid also has a non-HSA plan

[dvalley]

So I was really thinking of trying out the HSA plan this year to put some money away for the rainy day. Aside from the fact that the deductibles are $5k for individuals and $6k for family (ouch!) I also realized that I can't insure my kid under an HSA if my her mom (we've divorced) has her on her non-HSA insurance. So I guess I'm stuck with the non-HSA insurance

 

[Senator]

You can get your own insurance with an HSA account. Having the kid on it or not makes no difference. In fact, it's even cheaper for you if the wife pays.

 

[dvalley]

Thanks. It says at the bottom of the information leaflet that in order to contribute to an HSA you must:

- Not be enrolled in another medical plan that is not a high deductible health plan
- You cannot be enrolled in Medicare
- You cannot be claimed as a dependent on someone else's tax return

The hang up for me is the first item because if I choose the HSA plan (and my kid will be on it too) I won't be able to contribute to HSA funds? or are you saying I won't be able to contribute as a family amount but I still can as an individual? The ex pays for the insurance she gets from her work.

BTW, the deductibles are $5k for individuals and $10k for family members (not $6k as I previously stated).

 

[ziggy29]

If your kid is covered under your ex's plan, then why would you pay to cover them again? You can certainly take an HSA-eligible HDHP for yourself. I'm trying to understand why you are seeking to put the kid on your policy as well if he/she is already adequately covered under your ex's plan, to see what advantages there are for it. Frankly, tax benefits aside, you're probably better off setting a few bucks a month aside to help him/her pay their copays and deductibles if that's what you are concerned about. Yes, it won't be an HSA, but still might be better than double-paying for full coverage.

 

[dvalley]

Good question. Per the divorce decree we're both supposed to maintain insurance for the kid whenever possible. The other benefit was I could contribute more towards the HSA for the family vs. individual.

 

[thefinancebuff]

Thanks. It says at the bottom of the information leaflet that in order to contribute to an HSA you must:

- Not be enrolled in another medical plan that is not a high deductible health plan
- You cannot be enrolled in Medicare
- You cannot be claimed as a dependent on someone else's tax return

The hang up for me is the first item because if I choose the HSA plan (and my kid will be on it too) I won't be able to contribute to HSA funds?

It says you, who will contribute to an HSA, can't be enrolled in another medical plan that is not a high deductible health plan, not your kid can't. Your kid won't contribute to an HSA. You will. When your policy covers you plus one other person, you have family coverage and you get to contribute at the family level.

 

[bingybear]

Good question. Per the divorce decree we're both supposed to maintain insurance for the kid whenever possible. The other benefit was I could contribute more towards the HSA for the family vs. individual.

I've never been divorced so I may not understand, but they really require you two to have your kid covered under two different health insurance policies? It may be the case, but sounds like a waste of resources. Which one is considered the primary policy? How do you coordinate benefits between the policies. I had fun with something similar when we worked for the same company and they required we each get our own insurance. We had fun as we had to pay double deductibles for the kids before they would cover them... until they sorted it in HR. I guess I could see the double insurance if your kid loosing her insurance through your ex would not be a qualifying event on your insurance for adding her. Again, another thing I don't know.

From what you said above, you could do a single HSA and fund it.

 

[Mulligan]

I've never been divorced so I may not understand, but they really require you two to have your kid covered under two different health insurance policies? It may be the case, but sounds like a waste of resources. Which one is considered the primary policy? How do you coordinate benefits between the policies. I had fun with something similar when we worked for the same company and they required we each get our own insurance. We had fun as we had to pay double deductibles for the kids before they would cover them... until they sorted it in HR. I guess I could see the double insurance if your kid loosing her insurance through your ex would not be a qualifying event on your insurance for adding her. Again, another thing I don't know.



From what you said above, you could do a single HSA and fund it.

Yes that does appear to be very odd. Per divorce decree I had to maintain health insurance on our daughter. I kept her on her own individual plan and it was always reasonable. Then Ex remarried and I discovered that she could carry our daughter free on new husbands plan. I made a proposal to give her 2/3 the cost of insurance premium to be tact on as "bonus" child support and she agreed. Insurance then was off my books.
On separate note GF's ex lost job and insurance for their kid. She was immediately able to put her on her plan. He was supposed to provide the insurance also. Having two separate insurance policy would seem to be a recipe for each carrier to quibble over who was the "primary payer".


Sent from my iPad using Tapatalk

 

[dvalley]

It is odd but can't go back and change it. Whichever policy has been in-force the longest is considered primary.

Back to the question though. Based on what @thefinancebuff said above sounds like I'm good to go and can contribute at the family limit level? Anyone else that can confirm or deny? or should I call...hmm, but who can I call that can answer the question? the benefits dept wouldn't know.

 

[Animorph]

It is odd but can't go back and change it. Whichever policy has been in-force the longest is considered primary.

Back to the question though. Based on what @thefinancebuff said above sounds like I'm good to go and can contribute at the family limit level? Anyone else that can confirm or deny? or should I call...hmm, but who can I call that can answer the question? the benefits dept wouldn't know.

I think you can make your individual HSA contribution. You could not make one for your kid since they are covered by other non-HSA insurance.

 

[thefinancebuff]

Publication 969, page 4:

Family HDHP coverage is an HDHP covering an eligible individual and at least one other individual (whether or not that individual is an eligible individual).

 

[dvalley]

Thanks -you're my hero TFB...