Anyone with an HSA plan?

[disneysteve]

We just met with our insurance broker at work and he suggested we set up an HSA to cut our health care costs. Anyone here with experience working with an HSA either as an employer or as a participant? Who administers your plan? How has it been working out for you? Any input would be appreciated.

 

[WDWorBUST]

We have one at work and it works out great....if you plan. I'm in HR and I use the plan so I can speak from both sides. From the HR side our insurance broker actually handles it all....we just submit claims through them and then get our checks. Overall they seem to really be working on making them more user friendly. I think overall the rules are pretty standard. The money goes in and can only be used for medical expenses - if you don't use it you lose it. However ours has opened it up to OTC "stuff" so if you still have some left at the end of the year you can go stock up your medicine cabinet with that money anyway. If you have regular expenses or you know you will have something coming up in my experience it has been great. In the past I used it for contacts/glasses/contact solutions and BCP. This year I knew I was going to have to have some tests done because I was hyperthyroid so I put enough in to cover my deductible + some for well-baby visits and my follow-up visits. From the participant side it isn't a good deal for people who never go to the doctor. But if you can estimate your yearly medical expenses fairly close it is a great tool. That's my opinion anyway....for what it's worth.

 

[Savin4Disney]

I love it! I put in a 1000.00 this year and almost done with it. DS was in the hospital. ER visits and contact stuff. Doctor bills insurance did not pay at 100%. I so use it every year!

Ours is so easy..put in claim and get money in a few days. But check how your employer pays out. Ours does it daily. Some don't.

 

[polkadotladybug]

We JUST switched to a HSA with my husband's work - as of July 1st! So it's very new to us. Our monthly premium went down by $250 per month though. We are putting that $250 into a HSA which can be used for medical expenses. (Which when multiplied by 12 months comes out to $3000 which is what we have to pay before they start paying for anything anyway - our deductible for family coverage). The money socked away is tax exempt and we receive a debit (Mastercard) card that is linked to that money. So whenever we fill a prescription, pay at doctors office, order contacts, etc - I will use the debit card. It would be quite painful if I had to have something down without having any money saved up (since I have to pay out of pocket for prescriptions/doctors visits - if we don't have any money built up in the HSA), but eventually after saving up a bit - it should not be as difficult. It covers prescriptions, contacts, doctors visits, etc - which if we were paying the regular premium - would have had to come out of our pocket over and above what we were having deducted per paycheck. The money saved carries over from year to year.

As for now, it seems like a great plan. Ask me once we have to use it though...LOL...I hope I'm not singing a different story.

Ours is from Blue Cross/Blue Shield.

I'm curious to hear others experiences.

 

[disneysteve]

if you don't use it you lose it.

Sounds like you are describing a flexible spending plan, not a health savings account. The money in an HSA remains there until used and must be paired with a high deductible health insurance plan. Flex plans are good but, as you pointed out, you lose what isn't spent at the end of the year which can be significant if you overestimated your needs.

 

[donnabres]

I agree that they are talking about Sec. 125 plans, which are flexable spending accounts. First year of the HSA's was 2004, with contributions being able to be made by April 15, 2005. The amount you can contribute is based on high deductible health insurance plans. Can't remember the amounts, of the high deductible is, I think 1000 and 2000, if single or family plan. Don't quote me. If you qualified under the high ded/ plan, you could set one up, and deduct an amount on your tax return.
The good thing about the HSA is that you can continue to contribute to it yearly, as long as you have the high ded. plan, and all earnings stay in the plan tax free, and the contriubtions are tax deductible, sort of like a traditional IRA. You don't have to use any of it for years. When you take the money out to pay qualified medical exps. it is tax free. This in effect makes otherwise nondeductible medical expenses deductible. I think it's a great thing. None of my tax clients contributed to one for last year though. Too new, not many people know about them.

Good luck, it is a great option in my opinion.

 

[j's m]

Steve,
My DH and I have been talking about this. We have a small business (just ourselves and one single employee covered), currently have Horizon PPO and are getting killed with prices. We don't have a broker, just deal with Horizon direct, but I have been looking on their web site and starting to research it. If you come up with any good sites for info, or your broker has ideas, I'd appreciate a PM. Thanks.

 

[disneysteve]

July issue of Money magazine gave 2 sites to check out. I haven't had a chance yet but they are:

hsafinder.com and hsainsider.com

 

[seashoreCM]

Buyer beware.

With some of these HSA plans, if you get laid off, you forfeit the unspent money in the plan and cannot use the money for medical expenses later in the same year.

Disney hints:
http://members.aol.com/ajaynejr/disney.htm

 

[polkadotladybug]

Now - that sounds more like the flex spending account too. I know that I attended the meeting at my hubby's work when they introduced this plan (then the employees got to vote this vs old insurance) - and I asked what would happen to the money if say he went to another employer (not exactly the most kosher thing for an employee's wife to ask in a meeting, but hey...) The money is OURS. to spend for any medical expenses. It even covers OTC medicine! It's ours forever, even if the year is up, even if hubby goes to work somewhere else, retires, etc. BUT it must be used for medical expenses.

It will be good to use for that vasectomy we have always talked about......LOL

Carol

 

[WDWorBUST]

Sounds like you are describing a flexible spending plan, not a health savings account. The money in an HSA remains there until used and must be paired with a high deductible health insurance plan. Flex plans are good but, as you pointed out, you lose what isn't spent at the end of the year which can be significant if you overestimated your needs.

You're absolutely right....I was. Sorry about that. We had looked at changing and I had them in my head backwards. Boy that looks good for someone who works in HR to have it all wrong

 

[CajunDixie]

IMHO I don't like it at all!!! DH started out at the company with his employer paying the insurance and our deductible for the family was $250. Then they decided with the rising costs that they'd change plans to a higher deductible and the employees would have to pay 1/2 the costs of the premiums. Last straw was starting the HSA last year with employees paying all insurance costs and the employer doing a one time only $4000 deposit into the HSA. With our deductible being $4000 for the family. This year they raised our monthly payment to around $368 and raised our deductible to $5,000. And his employer decided to only contribute $1000 to the HSA account. So basically, instead of the employees getting raises they lost money but hey, the boss has a new sunroom, truck, and has taken 3 vacations in the past 8 months so I guess money is more important to them than good employees.

When I compared insurance coverage with a friend who also works for a small business I learned she had a family deductible of $500 and paid only around $250 a month. Now tell me how the government thinks HSA will save people money?

DH has since quit his job and talked to the guy that handles the retirement funds. He learned the employer's children encouraged him to change to the HSA and they didn't shop around for rates just took the recommendation their D-I-L gave...the same D-I-L whose mother owns an insurance business.

Now IF the boss had paid the premiums and/or deposited the total deductible yearly I might have liked it but not when I have to pay the premiums and the deductible.

 

[disneysteve]

Now IF the boss had paid the premiums and/or deposited the total deductible yearly I might have liked it but not when I have to pay the premiums and the deductible.

Of course, if the employer paid for everything, the business would likely go bankrupt in no time. Unfortunately, the reality is that health insurance costs have been skyrocketing for years. You are quite lucky to only be paying $368/month for family coverage. At my place, we're paying well over $600 (my boss pays the single person premium and I pay the difference to the family rate).

An HSA would definitely save me money. I'd be able to pay all of my out-of-pocket medical expenses with pre-tax dollars. That includes things like dental bills, OTC meds, prescription co-pays, doctor co-pays, etc. The cost of our health plan is going up no matter what. Adding the HSA at least buffers that increase.

By the way, if your DH's employer put $4000 into the HSA last year and $1000 this year, that money is still there unless you've spent it all. That's the great thing about HSAs. The money rolls over and earns interest until needed. (I realize he is no longer at the job - just speaking hypothetically.) So if you are fortunate enough to stay healthy, you could build up quite a nest egg in your HSA. And if some major medical problem crops up down the line, you'll have the funds set aside to cover the costs.

 

[Muushka]

I read about HSA last year. If I remember correctly, unlike a Flexible Spending account, which you will lose if you don't use, the unused HSA funds goes into a retirement account, or am I crazy? Then the next year you start over again, and cannot use the prior year's monies (for medial expenses).

 

[christinadei]

Our company recently switched to it and i don't like it. The deductible is $5200 and the amount the company contributes ($210) won't cover our premium. So we'd have to pay alot of the premium and everything we wanted in the savings account. We decided to take the money ($210) a month and put it in a seperate savings account (ING) just for medical expenses. I was able to get my son on the Florida Kidcare program, but i have to pay the full rate since we make too much money. But it's only $110 a month and the coverage is GREAT. So my husband and I just don't have insurance. But I save the extra $100 a month in that account in case we need to go to the doctor or get contacts, etc.

I think that the HSA is a good idea,, but the rates are too high for the coverage provided.

 

[disneysteve]

If I remember correctly, unlike a Flexible Spending account, which you will lose if you don't use, the unused HSA funds goes into a retirement account, or am I crazy? Then the next year you start over again, and cannot use the prior year's monies (for medial expenses).

That is not correct. HSA money is kept in a separate account (of your choosing) and can always be used to pay qualifying medical expenses (there is a whole list of what qualifies). If you don't use all the money one year, it just keeps accumulating and remains accessible. That's the appeal to me. The 3 of us are relatively young and in good health. We could put away a modest amount each month (plus a contribution from my job) and if we stay healthy, save up a good emergency fund over the next year or two. By the time DD is ready for braces, for example, the money in the HSA could be used to cover those costs. And the best part is it is all pre-tax money.

 

[Tamar]

HSAs are a huge gamble for employees....it does not take much for you to go from being "young and healthy" to "young and needed medical care". And the thing is, there's no way to predict, but if you're feeling lucky, then what the heck, get on the HSA bandwagon.

HSAs will encourage people to skip routing screenings (how much does that mammogram cost? Better know, because it won't be covered), and in the long run will be bad for the country's overall health (just mho).

 

[ajksmom]

Subscribing to this thread for any information posted.
DH's employer has been great at keeping insurance costs down for his employees. In the almost 5 years my DH has been employed there we've never seen an increase in our premium's just a $5 co-payment increase for dr's. and prescriptions. A few years back he even went to the high-deductible for inpatient/outpatient procedures and has paid the deductibles for us!!! HR said he's saved a ton doing this and saved us alot also.
They are looking into the HSA's so I'm interested in learning more.

 

[Tamar]

HSAs are a good deal for the priveleged...those who can sock away $4K a year, and if they spend it, so be it, otherwise it's earning tax-free interest. For those who are struggling to make ends meet or who know they will have medical expenses each year, HSA's are not a good deal at all, in fact they're pretty scary. They punish people who need the insurance most.

 

[manchurianbrownbear]

I work in sales at an HMO and I’d say that HSA’s have worked pretty well for the handful of my clients that have installed them. The biggest downside is that a lot of people have had some difficulty figuring out how to use the HSA to their advantage. The biggest benefit is the account holder’s incentive to seek efficient, cost-effective healthcare.

We are just now producing renewal rates for groups that elected HSAs last January 1, and, as a general rule, they have effectively lowered healthcare costs.

Our plans are administered by a 3rd party administrator who works with Wells Fargo.

The high deductible plans we offer alongside HSA’s cover preventive care at 100% with no deductible, and we offer plans that cover either 80% or 100% of most services after the deductible has been satisfied.

As with any health plan, an HSA works better for some than it does for others. Healthy families will benefit more from an HSA than families who are frequent users of healthcare. But, for many years, healthy families have been paying much of the cost for frequent users. What’s “fair” is in the eye of the beholder!