Special Open Enrollment Period & HSAs

[Credaholic]

I have a gold level ACA health insurance plan for my son and I for approx. $550 per month. I just had another child, and need to insure her as well. Our current plan will be $675 for all three of us. I'd ultimately like to switch both our children to my husband's work plan which will cost us approx. $300 per month, and then get myself a bronze level plan for approx. $200 per month, and I'm wondering if I can do that now during our special open enrollment period due to the birth of my daughter. Can I remove my son from my plan and downgrade it? I assume this is a stupid question, but the birth (which I don't think has been billed yet) will be billed under the gold level plan I had when she was born, not under a newly downgraded plan, right?

And lastly, can someone explain HSAs to me like I'm an idiot? Or rather like I'm a sleep deprived mom of a newborn and two under two ;-) I know people love HSAs as tax savings vehicles, but I don't really understand. Besides my pregnancies (which I will not be having anymore of) my health expenses are very minimal. I typically have one annual exam, and a $10 copay prescription every 30 days, and that's it. The kids have regular check ups, but I don't think I can use an HSA account for them if they're not on my HSA plan, right?

ETA: I can also put all of us on my DH's plan for $610. Then I'd have gold level coverage in case of a catastrophe, as well as dental which I don't have right now. Think this would be worth the extra expense?

[La Bibliotecaria Feroz]

You'll have to check with your providers. One employer we had let us change everything after our son was born--including, for instance, our own dental--while another told us we could only change things that were affected by the birth (ie, our health insurance).

[seattlecyclone]

I have a gold level ACA health insurance plan for my son and I for approx. $550 per month. I just had another child, and need to insure her as well. Our current plan will be $675 for all three of us. I'd ultimately like to switch both our children to my husband's work plan which will cost us approx. $300 per month, and then get myself a bronze level plan for approx. $200 per month, and I'm wondering if I can do that now during our special open enrollment period due to the birth of my daughter. Can I remove my son from my plan and downgrade it? I assume this is a stupid question, but the birth (which I don't think has been billed yet) will be billed under the gold level plan I had when she was born, not under a newly downgraded plan, right?

I think the answer is you can generally make whatever changes you want to your family's health plan situation after a special event like a birth, marriage, or job change. You're currently covered under the gold plan, so that's the plan that should pay for the birth.

And lastly, can someone explain HSAs to me like I'm an idiot? Or rather like I'm a sleep deprived mom of a newborn and two under two ;-) I know people love HSAs as tax savings vehicles, but I don't really understand. Besides my pregnancies (which I will not be having anymore of) my health expenses are very minimal. I typically have one annual exam, and a $10 copay prescription every 30 days, and that's it.

An HSA is a special tax-advantaged account. Unlike IRAs which are only tax-free when you contribute (for traditional IRAs) or when you withdraw (for Roth IRAs), HSAs are tax-deductible when you contribute and the withdrawals are tax-free when used for medical expenses. You can invest HSA money in mutual funds so that it can grow over the long term until you need it.

Do be aware that you need to have a high-deductible health plan (HDHP) to be eligible for an HSA. Under such a plan, you will likely need to pay more than the $10 co-pay your current gold plan charges for prescriptions. That said, you will likely be better off under an HDHP if you're generally in good health. You will end up paying more when you do need medical assistance, but the money you save from paying lower premiums should make up for it in the long run.

The kids have regular check ups, but I don't think I can use an HSA account for them if they're not on my HSA plan, right?

False. You can use HSA funds for any family member. The HSA contribution limit is higher when you have the whole family on the HDHP as opposed to just yourself, but otherwise you can use the money for any family member's medical expenses.

[Sundancer]

Ugh, yes, this HDHP plan is a painful change when you're used to those sweet (and easy) co-pays with no bills. We did the HSA plan this year instead of our usual PPO because, hey, we're a healthy family and we barely use the doctor, so why not save on the premiums? Thankfully, that is still the case but that also means we haven't reached that high deductible and are still paying most of the expenses OOP. Does your husband's employer happen to have a helpful HR team or benefits person who can walk you through it?

As far as going on the gold plan, my feeling is when it comes to health coverage as long as the cost is reasonable
it's always good to go for the best coverage you can get.