HSA Accounts?

[Beth]

Hello,

For those of you who have HSA accounts through your employer, do you pay a premium for that insurance? (irrespective of the contribution you make to your HSA account)

We will be dropping our traditional insurance at the end of the year (HMO's with Aetna,) and will be picking up with HSA's thru United Healthcare.

We will all have shared premiums. For example, an employee opting to go with an "individual plan" will be paying $60 per month, pre-tax, for their coverage. How much they wish to contribute to their HSA account is their decision.

Do any of you have to pay a premium for your coverage?

Thanks in advance....
~ Beth

 

[lovepurple]

No, we do not have a premium for ours.

 

[Mickeyluver37]

Oh yes....we pay dearly to turn around and pay some more every time we go to the Dr. I don't have the exact number but it's right around $80 WEEKLY coming out of Dh's paycheck, just for the premium. And it's going up 10% in 2010.

And as you know, the deductible goes up every year, but the employer likes to blame that on the IRS.

The literature that comes from the HR department from DH's job about how great and "comparable" our insurance is is down right insulting.

 

[laurie31]

Yes, it's just less (much less actually) than what I'd pay for the other plans they offer.

I can't imagine anyone not paying ANYTHING for their insurance. Is there anyone "out there" who doesn't pay a premium?

(I mean those insured through their work. Obviously self-insured people pay everything, and uninsured have nothing to pay for...for whatever reason. I don't want to derail the thread to talk about why people are uninsured.)

ETA - Well, that's what I get for taking to long to compose a post! LOL! And wow, lovepurple, you are lucky!! NO premium?? Wow...

 

[squirrlygirl]

Yes, but it's about half the cost of last year's HMO.

 

[CathrynRose]

I can't imagine anyone not paying ANYTHING for their insurance. Is there anyone "out there" who doesn't pay a premium?
..

If I'm understanding your question correctly (I'll be honest with you - the entire Insurance thing baffles me, and I don't know why).....

I do not pay anything for insurance (BCBS/IL). My company pays for myself, and family. I have nothing coming out of my checks.

In addition to this, my company puts $200 per month, into an HSA for each employee, as well.

 

[golfgal]

If I'm understanding your question correctly (I'll be honest with you - the entire Insurance thing baffles me, and I don't know why).....

I do not pay anything for insurance (BCBS/IL). My company pays for myself, and family. I have nothing coming out of my checks.

In addition to this, my company puts $200 per month, into an HSA for each employee, as well.

WOW!!!!! That is unheard of. A tip--if you can save the HSA money (pay for out of pocket medical costs without touching your HSA), save it for when you retire and you can use it to pay your Medicare supplement insurance-basically having your employer pre-pay your retirement insurance for you. You can also use that money to pay for assisted living care and long term care insurance down the road (along with a lot of other qualified medical expenses) Having an employer put that much into an HSA is a HUGE, HUGE, HUGE retirement benefit!!! WOW, WOW, WOW!!!!

OP, I am also a little confused by your question, and the insurance stuff doesn't baffle me, are you asking if you have to pay a premium for your insurance coverage with a high deductible health plan, the answer is yes--SOMEONE has to pay the premium-either you or your employer or a combination of both.

The HSA is something separate from your insurance and it is designed as a tax shelter for money to pay for out of pocket expenses leading up to your deductible, etc. Unlike a flexible spending plan, you don't lose the money in your HSA each year and you can save that money, that comes to you tax free, save it tax free and spend it on qualified medical expenses tax free down the road. It is an amazing saving tool.

 

[wovenwonder]

Health Savings Accounts [HSA] and Insurance are two separate things. You must have a high deductible Insurance Coverage in order to be eligible for a Health Savings account. You shouldn't be charged a fee for your HSA other than a nominal $8 or so maintenance fee per month at best. But you may be paying for a portion of your insurance coverage. Generally your insurance cost is less when you have an HSA because your deductible is higher. The amount you contribute to your HSA is tax free earnings and it remains tax free money if withdrawn from the account to cover an eligible medical expense.

 

[wovenwonder]

WOW!!!!! That is unheard of. A tip--if you can save the HSA money (pay for out of pocket medical costs without touching your HSA), save it for when you retire and you can use it to pay your Medicare supplement insurance-basically having your employer pre-pay your retirement insurance for you. You can also use that money to pay for assisted living care and long term care insurance down the road (along with a lot of other qualified medical expenses) Having an employer put that much into an HSA is a HUGE, HUGE, HUGE retirement benefit!!! WOW, WOW, WOW!!!!

Even if you pay the money for your medical expenses out of pocket now and save the funds for retirement as the poster above states, still turn in those medical receipts each year. You can turn the receipts in now but not pull out the money. Say you turn in $1100 in receipts this year but opt not to take the funds out of your HSA, you can withdrawal those funds at any time down the road tax free [since you turned the receipts in, but did not pull the money out at that time]. It makes for a nice emergency fun this way also.

 

[Mickeyluver37]

The HSA is something separate from your insurance and it is designed as a tax shelter for money to pay for out of pocket expenses leading up to your deductible, etc. Unlike a flexible spending plan, you don't lose the money in your HSA each year and you can save that money, that comes to you tax free, save it tax free and spend it on qualified medical expenses tax free down the road. It is an amazing saving tool.

That is all true, but one big difference you didn't mention....

With a FSA account, I allocate $25 per week, and on 1/1/10, I have $1,300 available to me, even though the $25 comes out all year long.

With an HSA account, I allocate $25 per week, and on 1/1/10, nothing is available to me, unless it is actually in the account. Some employers will make a lump sum payment on 1/1, but unless the cash is actually there, you can't use it.

BTW, could those of you that have a premium mention how much it is? I really feel as though we pay way more out of pocket than average, so I'm curious.

 

[CathrynRose]

WOW!!!!! That is unheard of. A tip--if you can save the HSA money (pay for out of pocket medical costs without touching your HSA), save it for when you retire and you can use it to pay your Medicare supplement insurance-basically having your employer pre-pay your retirement insurance for you. You can also use that money to pay for assisted living care and long term care insurance down the road (along with a lot of other qualified medical expenses) Having an employer put that much into an HSA is a HUGE, HUGE, HUGE retirement benefit!!! WOW, WOW, WOW!!!!

.

That is a good tip. Thank you!

Even if you pay the money for your medical expenses out of pocket now and save the funds for retirement as the poster above states, still turn in those medical receipts each year. You can turn the receipts in now but not pull out the money. Say you turn in $1100 in receipts this year but opt not to take the funds out of your HSA, you can withdrawal those funds at any time down the road tax free [since you turned the receipts in, but did not pull the money out at that time]. It makes for a nice emergency fun this way also.

Wow! Another good tip! Thank you, too!!

 

[golfgal]

That is all true, but one big difference you didn't mention....

With a FSA account, I allocate $25 per week, and on 1/1/10, I have $1,300 available to me, even though the $25 comes out all year long.

With an HSA account, I allocate $25 per week, and on 1/1/10, nothing is available to me, unless it is actually in the account. Some employers will make a lump sum payment on 1/1, but unless the cash is actually there, you can't use it.

BTW, could those of you that have a premium mention how much it is? I really feel as though we pay way more out of pocket than average, so I'm curious.

This is true, having both kinds of accounts can be of benefit but if you can only contribute to one, do the HSA.

Our premium for our family plan with our company paying 80% us paying 20% is $585/month. We have a $4000 deductible.

We get $1000/year into an HSA.

 

[apirateslifeforme]

When I had my job, coverage for me alone - $40/week for the insurance premium, plus an additional $27.83 into the HSA.

 

[Mickeyluver37]

This is true, having both kinds of accounts can be of benefit but if you can only contribute to one, do the HSA.

Our premium for our family plan with our company paying 80% us paying 20% is $585/month. We have a $4000 deductible.

We get $1000/year into an HSA.

The total is $585 or your 20% is $585?

You technically aren't supposed to have both, because it's not supposed to be a tax shelter. I thought it was illegal, but apparently it's allowed under very certain circumstances.

http://www.treas.gov/offices/public-affairs/hsa/faq_eligibility.shtml#hsa7

My employer offers an FSA, can I have both an FSA and an HSA?
You can have both types of accounts, but only under certain circumstances. General Flexible Spending Arrangements (FSAs) will probably make you ineligible for an HSA. If your employer offers a “limited purpose” (limited to dental, vision or preventive care) or “post-deductible” (pay for medical expenses after the plan deductible is met) FSA, then you can still be eligible for an HSA.

My spouse has an FSA or HRA through their employer, can I have HSA?
You cannot have an HSA if your spouse’s FSA or HRA can pay for any of your medical expenses before your HDHP deductible is met.

 

[disney1990]

Yes, it's just less (much less actually) than what I'd pay for the other plans they offer.

I can't imagine anyone not paying ANYTHING for their insurance. Is there anyone "out there" who doesn't pay a premium?

(I mean those insured through their work. Obviously self-insured people pay everything, and uninsured have nothing to pay for...for whatever reason. I don't want to derail the thread to talk about why people are uninsured.)

ETA - Well, that's what I get for taking to long to compose a post! LOL! And wow, lovepurple, you are lucky!! NO premium?? Wow...

DH and I will be married 26 years in January. We have never paid a health insurance premium since we got married. DH retired about 5 years ago and still we do not pay anything for our health insurance. (It is covered under his retirement benefits.) We used to have family coverage, but now we have coverage for 2 people.

We have an HMO and in January will have a Managed Care Plan. We pay $15 to go to our regular doctor or a specialist. We have no copay if we are admitted to the hospital. In addition, we have very good prescription benefits. Most drugs are covered at $8 or 15 for a 3 month prescription.

 

[golfgal]

The total is $585 or your 20% is $585?

You technically aren't supposed to have both, because it's not supposed to be a tax shelter. I thought it was illegal, but apparently it's allowed under very certain circumstances.

http://www.treas.gov/offices/public-affairs/hsa/faq_eligibility.shtml#hsa7

My employer offers an FSA, can I have both an FSA and an HSA?
You can have both types of accounts, but only under certain circumstances. General Flexible Spending Arrangements (FSAs) will probably make you ineligible for an HSA. If your employer offers a “limited purpose” (limited to dental, vision or preventive care) or “post-deductible” (pay for medical expenses after the plan deductible is met) FSA, then you can still be eligible for an HSA.

My spouse has an FSA or HRA through their employer, can I have HSA?
You cannot have an HSA if your spouse’s FSA or HRA can pay for any of your medical expenses before your HDHP deductible is met.

Our 20% is $585.

 

[Pakey]

Our family plan is around $1800 month with a $3000 deductible per person ($7500 per family). Employer pays all but $300 per month for employees who have been here for more than 5 years; those with a shorter term of service have to pay a lot more.

For a single plan, it's $600 per month and employer pays all so most employees opt to only have coverage for themselves. I'm the plan administrator for our corporation and I don't think many people realize how much the employer pays for insurance each month.

 

[CathrynRose]

See? This is where things baffle me. I don't know why - but I get totally confused with deductibles and such. It makes my eyes cross.

I pulled out my plan - so I could post "what I have" - and I really don't know what the hell I'm posting.

I have a PPO. It says Family Coverage Ded: $5000

Outpatient RX - 100% (after deductible) But I know that things are also discounted. Does that mean, once the deductible is met - those drugs will be free?

Well Care 100% - Hospital Admission 100% ... I honestly don't know if it's good or not. Like I said - eyes cross.

 

[Beth]

Thanks so much to everyone for your responses - that's what I wanted to hear!

OP, I am also a little confused by your question, and the insurance stuff doesn't baffle me, are you asking if you have to pay a premium for your insurance coverage with a high deductible health plan, the answer is yes--SOMEONE has to pay the premium-either you or your employer or a combination of both.

To elaborate... I actually do payroll for my company. I called our payroll processor (ADP) today to finalize all the new codes necessary to begin, and she challenged my request to set up a deduction code for the premium. Both she (an "HSA Specialist") and another support rep both said they had never heard of anyone paying a premium with an HSA... they had only ever assisted in setting up the contribution codes. She made me doubt myself - but I was "sure" that other companies with HDHP's and HSA's would share the premiums with their employees.

Also - FWIW - I've been with the company since its inception in 1989, and this is the first year we've ever imposed any shared premiums on our employees. Also, I've run a lot of numbers in comparison of the plans, and the HSA's often "do" work out better for the employee. It just takes a little bit more "work" on the employee's part which - IMHO - isn't a "bad thing."

But YMMV.....

Thanks again, everyone!

 

[golfgal]

Our family plan is around $1800 month with a $3000 deductible per person ($7500 per family). Employer pays all but $300 per month for employees who have been here for more than 5 years; those with a shorter term of service have to pay a lot more.

For a single plan, it's $600 per month and employer pays all so most employees opt to only have coverage for themselves. I'm the plan administrator for our corporation and I don't think many people realize how much the employer pays for insurance each month.

You have that right

See? This is where things baffle me. I don't know why - but I get totally confused with deductibles and such. It makes my eyes cross.

I pulled out my plan - so I could post "what I have" - and I really don't know what the hell I'm posting.

I have a PPO. It says Family Coverage Ded: $5000

Outpatient RX - 100% (after deductible) But I know that things are also discounted. Does that mean, once the deductible is met - those drugs will be free?

Well Care 100% - Hospital Admission 100% ... I honestly don't know if it's good or not. Like I said - eyes cross.

I need more information to answer your question--does it say anything like 100% after deductible or 80% or anything like that. Chances are after you meet your deductible everything is covered at 100% based on the coverage for hospitalization, etc.

Thanks so much to everyone for your responses - that's what I wanted to hear!



To elaborate... I actually do payroll for my company. I called our payroll processor (ADP) today to finalize all the new codes necessary to begin, and she challenged my request to set up a deduction code for the premium. Both she (an "HSA Specialist") and another support rep both said they had never heard of anyone paying a premium with an HSA... they had only ever assisted in setting up the contribution codes. She made me doubt myself - but I was "sure" that other companies with HDHP's and HSA's would share the premiums with their employees.

Also - FWIW - I've been with the company since its inception in 1989, and this is the first year we've ever imposed any shared premiums on our employees. Also, I've run a lot of numbers in comparison of the plans, and the HSA's often "do" work out better for the employee. It just takes a little bit more "work" on the employee's part which - IMHO - isn't a "bad thing."

But YMMV.....

Thanks again, everyone!

OK, I think you are both talking about the same thing but you are not using standard terminology:

premium is what you pay for an insurance product--so if the employee is paying part of the insurance portion of the health plan, that is a premium deduction ( say your total health insurance cost for an employee is $1000/month and you are going to pay 80% of that and the employee will pay 20%-the premium deduction would be $200/month).

contribution would be an amount put into the HSA either through payroll deduction voluntarily by the employee and/or the amount the company is putting in (say the company puts in $60/paycheck and the employee wants to do another $60 the total contribution would be $120).

Don't forget to tell the employees they need to set up an HSA at their bank--they will get a debit card to use for med expenses with most banks-it's really handy.