Author Topic: Health Insurance (Buying your own???)  (Read 1199 times)

tryathlete2011

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Health Insurance (Buying your own???)
« on: August 12, 2016, 07:55:47 AM »
My company was recently purchased by another company which offers significantly worse benefits. We were paying ~$100 a month for the basic plan with HSA, new company offers a basic plan at $632/month with HSA. Old company contributed $12,400 to my health coverage (myself, wifey and 2 kids). I have not yet received formal salary information, but I've been told that 'total compensation' will be equivalent. Hoping that includes the insurance money.

I'm considering telling the company I will purchase my own insurance and just give me that amount in pay. I did a quick estimate with a local insurance provider and came up at $10,200 as the cheapest plan I could find. About $850 a month. The new company also offers a $250 'bonus' for individuals who choose not to take their insurance, usually because they are covered under a spouse. Does anyone know if I am able to purchase private insurance even if I'm eligible through my employer? Any other gotchas I should look out for or questions I should ask?

Also, how do HSAs work if you are private? Can I still contribute pre-tax? Can I roll my current HSA cash? Or keep it? Thanks.





AK

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Re: Health Insurance (Buying your own???)
« Reply #1 on: August 12, 2016, 12:34:21 PM »
I don't know if it's possible to purchase private insurance even if you have health insurance options through an employer. My suspicion is that you probably could as long as it's a qualifying event or you're enrolling during open enrollment. Give your local insurance carrier(s) a call and find out.

You can still contribute to an HSA as long as you have a qualified High Deductible Health Plan (HDHP). If you have private insurance and pay with say your checking account, you can still have it counted as pre-tax but you'd get it deducted when you file your taxes. The other downside is that it wouldn't lower your Social Security and Medicare amounts as it normally would when you make HSA contributions through your paycheck. One thing I'm unsure about is if you can have your employer make an HSA payroll contribution to your HSA provider if you have a non-employer, private health insurance plan. You'd have to ask your HR department that. If they can, I'd recommend doing that.

Your HSA money is yours for life even if you no longer have health coverage or are not on a HDHP and can be used to pay for qualified medical expenses.

Axecleaver

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Re: Health Insurance (Buying your own???)
« Reply #2 on: August 12, 2016, 02:49:48 PM »
Quote
Does anyone know if I am able to purchase private insurance even if I'm eligible through my employer?
Yes, but you won't qualify for subsidies unless the new insurance is considered "unaffordable."

Go to healthcare.gov, or your state's health insurance exchange. You qualify for a special enrollment period since you've lost your insurance from your old plan. Don't forget that since the old health insurance subsidy from OldCorp was pre-tax, and your new plan will be paid with post-tax dollars, you're going to need the new salary to be increased by your marginal rate as well. Bet HR will love that! Price it out as single enrollments for each member of your family, spouse and spouse+kids, and family. Sometimes it's significantly cheaper one way or the other.

Since you're changing mid-year, your new plan will restart your deductible. Sucks for this year, but nothing you can really do about it. I mention this because it looks like your new company is using a HDHP with an HSA.

forummm

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Re: Health Insurance (Buying your own???)
« Reply #3 on: August 12, 2016, 05:05:37 PM »
Quote
Does anyone know if I am able to purchase private insurance even if I'm eligible through my employer?
Yes, but you won't qualify for subsidies unless the new insurance is considered "unaffordable."

Go to healthcare.gov, or your state's health insurance exchange. You qualify for a special enrollment period since you've lost your insurance from your old plan. Don't forget that since the old health insurance subsidy from OldCorp was pre-tax, and your new plan will be paid with post-tax dollars, you're going to need the new salary to be increased by your marginal rate as well. Bet HR will love that! Price it out as single enrollments for each member of your family, spouse and spouse+kids, and family. Sometimes it's significantly cheaper one way or the other.

Since you're changing mid-year, your new plan will restart your deductible. Sucks for this year, but nothing you can really do about it. I mention this because it looks like your new company is using a HDHP with an HSA.

What he said.