HSA's- tell me the good and bad..

[ColinBlair]

I know what I have and also know that a PPO should not qualify for an HSA. If you have a PPO and pay co-pays you shouldn't be on an HSA. Even my tax advisor has said a insurance classified as a PPO no matter what the deductible is makes you ineligible to contribute to an HSA (you could still have one if you had a HDHP previously)

HMO = Health Management Organization, where you pick one doctor and generally all medical stuff requires a referral from that doctor.
PPO = Preferred Provider Organization, where you can pick any doctor but copays/coinsurance is lower for in-network doctors as opposed to out-of-network doctors. No referrals are needed.
EPO = Exclusive Provider Organization, like a PPO but out-of-network is only for emergencies

HDHPs are variants of the other plans where copays/coinsurance do not kick in until after the deductible has been met. It is not correct to say that a HDHP can't have a copay, it can but only after the deductible has been met. So, it is possible to have a HDHP that is also a HMO, PPO, EPO, or whatever acronym your insurance wants to use. Just from my own experience and a quick look around the web, my guess is that most HDHP plans in use are PPO style plans.

 

[supersnoop]

We had an HSA. However, we seem to be the minority in how it worked/what it does. We hated it. All medical expenses (except preventative such as basic mammogram and yearly physical) were out of pocket. If I had to bring my daughter to the pediatrician because she was sick, I had to pay the full amount. Was the same way for prescriptions. Had to pay until a very high deductible was met.

I'm curious; what was the difference in premiums between the HDHP and the regular plan you switched back to?

In many cases, the difference in premium is similar to the deductible, so you're really paying the same amount or less with the HDHP, but you're paying it directly to your doctor instead of to the insurance company.

 

[SandyinMonterey]

I'm curious; what was the difference in premiums between the HDHP and the regular plan you switched back to?

In many cases, the difference in premium is similar to the deductible, so you're really paying the same amount or less with the HDHP, but you're paying it directly to your doctor instead of to the insurance company.

We had the HSA at my husband's old job. The company he worked for was so stingy. They cut back or got rid of so much. Got rid of the 401k, no Christmas party, no Christmas or any other bonus in the last 10 years my husband worked there, no raises (for anyone) in 8 years going on 9 years. NO KIDDING! It was just a matter of time until they got to the benefits. The last 4 years or so was with the HSA. The cost to employee went up dramatically year after year. I don't recall the exact amount, but it was high and we are a family of 3. I would only use the HSA for my yearly visit to the doctor and my mammogram because that was considered preventative and covered 100%. But, I also had to have an ultrasound done yearly and that was not covered and was all out of pocket for me and was over $500/year. I would also use it for my daughter's yearly check-ups with her pediatrician, but if she got sick (and whose kid doesn't?), then that office visit was out of pocket. Usually $200 plus. It also didn't cover prescriptions. My daughter's monthly inhalers were about $125 a piece, she needed two. A very high deductible had to met for both medical and prescriptions. Sad to say that my husband and myself didn't see a doctor unless it was absolutely necessary. And, in that case, we went to a doctor that charged $50 at a clinic. We would save whatever we can just in case our daughter needed something. My husband was pretty high up at his last job where all this was taking place and privy to a lot of information. It was a well known fact, at least in our case, that the HSA was for the benefit of the owner(s) of the company because it was less money for them. We have since moved and my husband's insurance is soooooo much better. We even have a prescription plan now. Thank goodness!

 

[wendow]

I'm curious; what was the difference in premiums between the HDHP and the regular plan you switched back to?

In many cases, the difference in premium is similar to the deductible, so you're really paying the same amount or less with the HDHP, but you're paying it directly to your doctor instead of to the insurance company.

We are going from a HDHP (had that the last 3 years) back to a regular plan and our monthly cost difference will be $245 more.

The HDHP has a $10,000 deductible (no individual, only family) and the regular plan has a $1500 individual deductibe, $3000 family.

The HDHP was great while healthy but we have a family member who has been chronically sick for 19 mos. We had no idea she would still be sick this year or we would have switched back for 2016. We have spent over $8,000 this year alone b/c like @SandyinMonterey posted, every single thing is OOP. My dd will have surgery in March and we will hit the $1500 deductible right then for her. Plus we will go back to copays which I am looking forward to.