Health Saving Accounts

[SamSpade]

I'm a federal worker and to put it bluntly, I'm sorely pissed off that my flex account got hacked down to 2500 bucks a few years ago. I'm finding that the account is usually depleted before spring.

I've considered using a health plan with a health savings account, but I don't know any other federal workers who have done that. Moreover, I don't know how much it will screw up what I already have in place.

Has anyone changed theirs, and what did you notice different?

 

[Chris0nllyn]

I never had a FSA, but I do have a HSA.

HSAs offer triple tax benefits (contributions reduce your taxable income, account earnings are tax free, qualified expenses are tax free), no "use is or lose it policy", and can be kept for your life. Contribution limits for a year (2016) is $6,650 ($6,700 in 2017) for a family, and an extra $1,000 if you're 55 and older. Some folks are even using them for quasi-retirement accounts.

You must have a high deductible plan though (minimum $2,600 for a family) and a max out of pocket amount of $13,100 for family.

Some companies even offer a contribution to your HSA if you enroll in a HDHP (since it keeps their costs down). Not sure if Uncle Sam does though.

So, come open enrollment time, just make the switch and nothing should get screwed up, but I would certainly talk with your benefits person.

 

[SamSpade]

I never had a FSA, but I do have a HSA.

HSAs offer triple tax benefits (contributions reduce your taxable income, account earnings are tax free, qualified expenses are tax free), no "use is or lose it policy", and can be kept for your life. Contribution limits for a year (2016) is $6,650 ($6,700 in 2017) for a family, and an extra $1,000 if you're 55 and older. Some folks are even using them for quasi-retirement accounts.

You must have a high deductible plan though (minimum $2,600 for a family) and a max out of pocket amount of $13,100 for family.

Some companies even offer a contribution to your HSA if you enroll in a HDHP (since it keeps their costs down). Not sure if Uncle Sam does though.

So, come open enrollment time, just make the switch and nothing should get screwed up, but I would certainly talk with your benefits person.

Do HDHP's cover everything after the deductible is met?

I wish I had a nickel for every time I've heard "oh it's covered by insurance" only to find out "oh - but not anesthesia, and not prescriptions, and not hospital stay and the deductible for the testing is this" and so on.
So "free" health care costs hundreds to thousands.

Not counting the actual premiums, after the mortgage, medical is our biggest expense - and we're fairly young. It's just every year, co-pays go up, prescriptions go up and medical problems seem to expand to fill the money left over in the paycheck.

 

[Chris0nllyn]

Do HDHP's cover everything after the deductible is met?

I wish I had a nickel for every time I've heard "oh it's covered by insurance" only to find out "oh - but not anesthesia, and not prescriptions, and not hospital stay and the deductible for the testing is this" and so on.
So "free" health care costs hundreds to thousands.

Not counting the actual premiums, after the mortgage, medical is our biggest expense - and we're fairly young. It's just every year, co-pays go up, prescriptions go up and medical problems seem to expand to fill the money left over in the paycheck.

Depends on the plan I believe. Mine, specifically, is 80% covered after deductible, then once the max out of pocket limit is met, everything is covered.

So, assuming your deductible is $2,600 and your max out of pocket is $13,100, if you get hurt and it's $100,000, you'd pay the $2,600 and 20% of the total. In this case, it's be $20,000. Since your out of pocket max is $13,100, that's what you'd pay. The rest is covered by insurance. So your $100,000 medical bill would cost you $15,700. (I'm pretty sure that's correct )

There's tons of minute things in there. Example, any and all preventative screenings are covered 100% in full. If I go to a minute clinic-type place, only a small amount (20% I believe) is covered. Reading the plan details is like drinking a bottle of Tylenol PM.

I feel your pain. I went from a $50 a month "Cadillac plan" to a $280 a month HDHP in one fail swoop.