HSA Question

[SuzySunshine]

Do we have any HR benefit people?

When we are at Mayo we used their HSA health insurance policy which we loved. When we came here that was not an option so we switched to the OHSU PPO. We still have about $280 in our HSA account from Mayo.

Can I use that money to pay our health bills here under a different policy? As long as they're qualifying expenses, I can, right?

Anyone? Please help

And before someone says call the plan and ask, DH would have to do that, and we all know how that goes.

[oceanchild]

I *think* you have to be enrolled in an HDHP to use an HSA (as opposed to an FSA). But I'm not certain about that.

[Mrs. MD, Esq.]

Yea you can... I had the same question/issue (but note OTC drugs no longer qualify). Also you can't pay premiums with it.

[SuzySunshine]

That is where I'm getting confused. I know you have to be in a HDHP to contribute but do you have to be in one to spend it after its contributed?

I used to understand health insurance plans very clearly now I can't even follow them.

[Mrs. MD, Esq.]

You can no longer contribute to it at all; however you can continue to spend it...I called and asked when I changed insurance plans and they were very clear on that.

You can actually take the money out if you want too (but you have to pay taxes and jump through hoops I didn't want to deal with...)

[SuzySunshine]

That helps - thanks. We have bills to pay from Robert's hospital visits lately and I'd gladly use that money first!

[houseelf]

I'm reviving this thread from the past because I am seriously contemplating switching from a traditional (EXPENSIVE) insurance to a HDHP plan per white coat investor's advice. Several of the more financially savvy people I know IRL have jumped to this option.

Continuing with our traditional insurance will cost us $5,117 to be withdrawn out of our paycheck plus we continue to have $20/40 copays for office visits, $600 deductible and a $3000 Out of pocket maximum.

In the HDHP, the hospital will contribute $2000/year. The family deductible is $3000 with an out-of-pocket maximum of $5000. Once the $3000 deductible is met, coinsurance of 15% kicks in until the out-pocket $5000 max is met.

Honestly, we spent a lot of money on healthcare last year, none of which will be covered under either plan: orthodontia, glasses, speech, acne medicine.

I like what the white coat investor says about these plans being stealth IRAs. We pay a lot of taxes. A lot. I'm all about sheltering income from taxes. Still, this seems scary. What would a good medspouse do?

[SoonerTexan]

^^^I'm kicking myself for not going to it last year. At my company, we would pay ~$50/month vs the $250 we do now. Same providers. Same company. AND the company kicks in the first $1000 towards your deductible. Basically $1000 in free medical care. Essentially, in 2012 we spent 3-4K more than we needed to when all was said and done.

The reason I didn't is because they used to have a policy that once you switched, you couldn't go back to the normal PPO plan. They changed that now and you can switch back and forth

However, I have done the math and the high premium plan is the much better deal when it comes to pregnancy, especially if things get complicated. Thus, we are staying on for 2013 and 2014. GRRR.

[SuzySunshine]

We love our HSA and see no reason we'll we go back!

[spotty_dog]

We don't have an employer insurance option, and with his specialty my husband is very comfortable assessing and sometimes treating simple issues at home. So HDHP is a great choice for us. We don't currently use the HSA as a stealth IRA. We're a little nervous about the laws changing in the future, and also we feel like we lose a lot of flexibility for that money in exchange for the tax benefit. However, we do fund the account a bit higher than our projected needs.

You do need to be prepared to use your emergency fund if anything happens. Our out of pocket was about $8-9k when DH broke his ankle. Also, if you have or develop chronic issues, it can be tough to face paying out of pocket again...and again...and again as you rack up the visits. I have an acquaintance with an HDHP and mental health problems, and she's been canceling her therapy appointments because her kids have been sick and that has done in her budget for medical stuff. (They don't have a super high income, so health care stuff has really strapped their budget -- hopefully if you have a fully funded HSA and an emergency fund it won't come to those kinds of headaches for your family.)

[houseelf]

In theory this sounds like a good choice, but it feels like we're betting against ourselves. Like gambling, the house always wins.

I'm furiously researching this. When did things get to be so complicated? I know that there is an impoverished single mom, a frail elderly person, and millions of others getting screwed over right now because the burden on the consumer to be informed for everything from health insurance to cell phone plans has skyrocketed in the last decade. I can guarantee my parents' generation didn't deal with this shit. These companies know that they will win in the insurmountable details.

Harumph.

[HouseofWool]

It's true. We have a patient who lost cobra coverage and now has major medical. However they did not do due diligence when researching plans and NO diagnostic tests are covered. Nada. How is that beneficial? You can go to the doctor, but no tests will be covered to figure out what is wrong with you. In what reality does that make any sense?