Bronze Plan plus HSA?

[Machine99]

For years we've just went with the "Gold" plan, but this year I've really started to ramp up my savings for retirement. Looking at the cost difference between the Gold and Bronze, it seems like an enormous waste of money when we rarely use it. Yeah, I know its insurance in case something major happens and I would never go without insurance. I'm 47 and the wife is 49. We have a 19 year old daughter. While we are overweight and have some aches and pains that come with age, we currently have nothing major going on (that we know of).

I'm considering dropping to the Bronze and putting the money we save in either savings or HSA. I cant seem to find much info on the requirements for participation of an HSA other than you have to have a high deductible.

Can we have the Bronze plan and participate in an HSA?
Doesn't look lime my employer has a HSA, anyone recommend who to use for HSA if we are eligible?

Plan costs every 2 weeks:
Bronze $279 ($7,254/yr)
Silver $356 ($9,256/yr)
Gold $492 (12,792/yr)

Would love to start putting that $5,500/yr difference in an HSA.

Thoughts?
Thanks!

 

[captain3d]

The plan should say if it is HSA compatible. It needs to be a high deductible plan. We did this for years with a Kaiser bronze plan at my last job.

 

[Machine99]

It does not specify either way.

 

[Machine99]

Here are the Deductibles and max OOP

Annual Plan Year Deductible In-Network - Individual $3,000
Annual Plan Year Deductible In-Network - Family $6,000
Annual Out-of-Pocket Maximum In-Network - Individual $6,000
Annual Out-of-Pocket Maximum In-Network - Family $12,000

 

[bingybear]

The plan healthcare.gov would say HSA eligible. I'm don't know what state would have.
The plans I've seen this year use the term HSA or Saver in the name. There are a number of requirements beyond having a high deductible, so that is not sufficient tp determine HSA compatibly.

I have used bronze plans that are HSA compatible. What type of plan is best really depends on how you use them. I'm putting the HSA in investments to provide health $ in later years.

Where are you finding these plans? You can always call the insurer to see if the plan is HSA compatible if all else fails.

 

[Sojourner]

It does not specify either way.

If the plan doesn't specifically say "HSA" in the name, then it's probably not eligible. It's a bit tricky that way. I've seen several bronze-level plans on the exchange that appear to meet the high-deductible requirement (among others) yet were specifically not HSA eligible. The only way to know for sure is to read the details in the plan brochure.

 

[bingybear]

instead of looking at a specific plan, look at all bronze plans available to you and see if they have HSA or Saver in the name. There could be HSA compatible plans in silver and maybe gold too.

If you use CSR on silver plans, the effect of CSR can invalidate the HSA compatibility.

Many of the high deductible plans I see are not HSA compatible. It is really a misleading term (HDHP). There are other required characteristics. Call the insurer or (maybe) healthcare.gov.

OP, where are you looking up these plans?

 

[MichaelB]

Here are the Deductibles and max OOP

Annual Plan Year Deductible In-Network - Individual $3,000
Annual Plan Year Deductible In-Network - Family $6,000
Annual Out-of-Pocket Maximum In-Network - Individual $6,000
Annual Out-of-Pocket Maximum In-Network - Family $12,000

Those amounts fall within the IRS guidelines for HSA eligibility. There is an additional requirement, there can be no insurance coverage until the deductible has been met, except wellness programs, preventive care and accidents. So, any copays or other coinsurance for specialists, labs, etc before the individual deductible has been met means the policy is not HSA compliant. If, excepting those mentioned items, coverage does not begin until the deductible has been met, the policy is HSA compliant even if HSA does not appear in the name.

 

[Aerides]

On healthcare.gov you can filter plans specifically for HSA eligibility.

 

[audreyh1]

I can only determine whether a plan is HSA compatible by going to the insurer website for quotes and using a search filter.

It’s not usually in the name and often not in the details either.

 

[davebarnes]

You are looking for plans with these types of labels:
KP CO Bronze 5500/30%/HSA
Cigna Connect HSA Bronze 5500

 

[FrankiesGirl]

When I go on the healthcare.gov site, I can see HSA compatible in the titles of the offerings. If you don't see that, likely you don't have them in your area.

 

[Throwdownmyaceinthehole]

Don’t forget that the amount you put into your HSA also lowers your income, which increases the ACA subsidy. For us it was a no brainer as we are low healthcare users. DH goes on Medicare in Dec and we can use HSA to pay premiums with tax free HSA funds that have been invested the past three years. It’s been a huge winner for us.

 

[audreyh1]

None of our HSA plans have HSA in the title.

 

[MBSC]

On healthcare.gov you can filter plans specifically for HSA eligibility.

The OP mentions "employer", paying premiums every 2 weeks, and saving for retirement. I surmise he is trying to determine if the Bronze level employer health plan is HSA eligible.

1) Copay plans are not HSA eligible. Look for office visit copays and drug copays.

2) Group health plans also use the phrase Consumer Driven Health Plan/CDHP to identify HSA eligible plans.

3) Since the employer is not promoting the GHP as HSA eligible, not linking to an HSA, and not making an HSA deposit to encourage enrollment it is less likely the GHP is eligible.

4) Verify the Bronze GHP uses the same provider network as the Gold GHP, or a network you are comfortable with if they are different.

 

[sengsational]

If you expect minimal encounters with doctors and or pharmacies during the year, what you are buying is the max out of pocket and the network. That's it. You're buying true insurance in that if something bad happens, you take a defined hit, but no more.



The way I've seen the pricing, a low utilizer would be doing themselves a financial disservice by selecting anything but the least expensive premium (up to their PTC, of course).



The HSA is worth whatever the tax rate is times the deductible amount ($7,850 for my family), so comparing an HSA to non-HSA I'd reduce the HSA premiums for two by, say, $1,200 or so to make it apples to apples.

 

[Splash]

The 1st year we switched to a high deductible plan I was diagnosed with breast cancer. I thought we had made a big mistake until I did the math. Despite 2 surgeries, chemo, radiation, lots of tests and dr. appointments, we ended up paying less with the high deductible plan.

I would take the Bronze Plan (HSA or not). If you have a good year, you save the $5500 in premiums. If you have a bad year, your MOOP is only $500 more than what you saved in premiums.

 

[rodi]

Our plan doesn't have HSA in the name, per se, but has it in the description. What is in the name is HDHP (high deductible health plan.)

Some things to think about with a high deductible /HSA compatible plan. From my own experience.
- You need to budget for worst case... spending the full deductible and full max OOP. How do I know this - we've hit it for at least one family member 3 of the past 4 years. Prior to this we had VERY LOW health care costs. Life hap- pens. Especially with teenagers. We hit max OOP for my son last month... so all visits are now free - woo hoo... Until Jan 1st.
- Even with deductibles - you still get negotiated rates. This is a huge deal. It makes the insurance worth it.
- You need to do the math. In our case - the premiums plus deductible are less than an equivalent Gold plans premiums and copays. And if don't hit the deductible - you come out ahead. Last year we hit the lotto and came out a few thousand ahead than if we'd had a gold plan.
- Another math issue - HSA contributions are not taxable. This reduces your income for ACA purposes, etc. As long as the HSA funds are withdrawn for qualified medical costs - the money is tax free on withdrawal. This can be a big tax savings, depending on your situation.

 

[Sue J]

When I look at plans I look at premium cost for the year and also worst case scenario which is annual premium plus MOOP. If an HSA plan is available I evaluate that one with a subsidy calculated for our income minus the HSA contribution. I also consider the network.

For us, the subsidy difference for the reduced income from the HSA contribution has a larger impact than our tax rate. Last year it was 16% of the HSA contribution - for every $1000 our subsidy increased by $160.

I look back on our expenses so far this year. DH has met about $700 of his deductible. I have met $1700 and $800 of that was 9 sessions of physical therapy and $248 on an MRI. Our deductible is $4000 each, then insurance pays 50% until we hit our MOOP of $6550 each.

Our plan’s allowed amounts are very reasonable.

If you aren’t sure if a plan is HSA compatible on Healthcare.gov there is a filter to show only HSA plans. Also, in the plan details there will be an item that will say yes or no to HSA compatible.

 

[Texas Proud]

It was mentioned earlier, but there are other rules besides being HDHP...


Almost all the Bronze plans I looked at were HDHP but only a few were HSA eligible....

 

[oscar1]

FWIW, you get asked the questions about HDHP, HSA eligible, qualifying family members (if you opt for 1 family HSA account but separate debit cards) once when you sign up for the HSA account. After that your HSA provider may not ask every year because you are already a customer in good standing. Most of this stuff is all on-line now with auto-deposit, electronic funds transfer in and out, etc. So ask your HSA provider if they even care if you switch health care plans after the first year, and how would they know you switched to a non-HSA compliant plan after year 1?

 

[RunningBum]

FWIW, you get asked the questions about HDHP, HSA eligible, qualifying family members (if you opt for 1 family HSA account but separate debit cards) once when you sign up for the HSA account. After that your HSA provider may not ask every year because you are already a customer in good standing. Most of this stuff is all on-line now with auto-deposit, electronic funds transfer in and out, etc. So ask your HSA provider if they even care if you switch health care plans after the first year, and how would they know you switched to a non-HSA compliant plan after year 1?

So you're advocating tax fraud?

 

[bingybear]

FWIW, you get asked the questions about HDHP, HSA eligible, qualifying family members (if you opt for 1 family HSA account but separate debit cards) once when you sign up for the HSA account. After that your HSA provider may not ask every year because you are already a customer in good standing. Most of this stuff is all on-line now with auto-deposit, electronic funds transfer in and out, etc. So ask your HSA provider if they even care if you switch health care plans after the first year, and how would they know you switched to a non-HSA compliant plan after year 1?

the provider likely won't know, the IRS on the other hand might.
If you have money in an HSA but no longer have an HSA insurance, you can still use the money in the HSA to pay for qualifying expenses. In fact you can spend it on things that don't qualify, but you may have to pay penalties of taxes when you make errors. The HSA providers do not track your expenses are appropriate, you do.

 

[Machine99]

I am going to contact my benefits department tomorrow to see if they might know. Based on some comments here, I've got the feeling the two bronze plans offered by my employer from BCBS and United Healthcare are probably not eligible. I guess I can still go with the Bronze plan and make my own healthcare savings account without the tax benefits....

 

[bingybear]

other metal plans (like silver) can be HSA compatible, but may be more costly