Abandoning HSA, Considering Plan Change

[TromboneAl]

Since we're spending after tax dollars right now, there is much less benefit to an HSA plan. That is, being able to deduct three thousand dollars of HSA contributions per year doesn't save that much. At best it just means that we can do three thousand dollars more of a Roth conversion and pay no taxes on it.

So I'm considering changing to the non-HSA plan shown in this comparison.

Pros for switching:
Save $1,000/year or $1,600 in premiums

Cons for switching:
No more HSA
If I go over the deductible, I could be out $7K or $10K in one year as opposed to $5K
Drug coverage isn't as good

Your thoughts? Thanks!

 

[ksr]

Are the Lifetime Maximums the same (I couldn't see them in the chart)? I have been considering doing the same thing - going to a higher-deductible plan which would not be HSA-eligible. Like you, I've factored in the difference in premiums, out-of-pocket potential, and tax savings. But, I've found that most of the higher-deductible plans I'd be interested in set a Lifetime Max at $1 million (as opposed to the $3 million I have now).

 

[Moemg]

Those choices look pretty awful to me . Basically if you get ill you could be taking either a $14,000 or $20,000 hit . Plus do they cover non generic medicines at all ? I have asthma and there is no generic for my inhalers and each one is several hundred dollars . You and Lena are currently healthy but one illness could easily have you meeting that deductible so chose wisely .

 

[Martha]

With the maximum out of pocket on top the the deductible it will be a big hit if you get ill.

I'd check into more what exactly is the drug coverage.

 

[teejayevans]

Understand this will require new underwriting, if you have developed a new
medical condition, you might not be able to switch.
TJ

 

[TromboneAl]

I didn't see any info on lifetime maximums.

Basically if you get ill you could be taking either a $14,000 or $20,000 hit

Note that we are on separate plans. The advantage is that instead of say one $7K family deductible we each have $3.5K deductibles (actually hers is $5K). This is a big advantage.

Understand this will require new underwriting, if you have developed a new
medical condition, you might not be able to switch.

Not for this switch. The info (and the person I talked to) said "no underwriting needed."

I'd check into more what exactly is the drug coverage.

Current Plan:

$15 copay generic (Tier 1) (each 30-day supply); $35 copay brand-name (Tier 2) (each 30-day supply) after combined deductible. Self-administered injectable drugs, except insulin, 30% of the negotiated fee. 50% Co-Insurance for Non-Formulary drugs.

Coreguard Plan:

Tier 1: $15 copay. Tier 2: 100% of negotiated fee until the $2000 prescription drug deductible has been met then $35 copay. Tier 3: 100% of negotiated fee until the $2000 prescription drug deductible has been met then 25% of negotiated fee.

 

[Moemg]

So basically Coreguard has a regular deductible and then a drug deductible . It does not look like you get much for your money . The only time these policys will be good is if you get a major illness and hopefully they have a large lifetime max.

 

[easysurfer]

Seems to me like you'll need a guesstimate as to how likely you will hit those deductilbe amounts. I know for me, I have a 5K deductible HSA. So far, I'm healthy and don't expect to hit that deductible.

Overall, it actually seems like a rigged setup in favor of the insurance companies, but that's a whole different discussion.

 

[Moemg]

When I was looking to change insurance companies I got the books from both of the companies and compared them line by line . A lot can be hidden in those little snapshots they use to sell policies .

 

[Stevewc]

This is just another question in line with this thread.
When these policies have life time limits of 1 mil.
Is this generally per person in a family plan?
Steve

 

[TromboneAl]

DW and I are careful to have separate plans. Otherwise instead of, say, a $5,000 deductible, we'd find ourselves with a $10K combined deductible.

 

[dgoldenz]

What does a $5k per person deductible HSA plan cost? The CoreGuard plans have "limited brand" name prescription coverage....what is limited, the maximum benefit? If so, stay away. There are many brand name prescriptions with no generic alternative that can cost thousands of dollars per month.