Author Topic: HSA Question  (Read 2240 times)

Raislin

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HSA Question
« on: May 09, 2015, 09:18:01 PM »
Hi all,

I tried finding some information on this, but I'm having difficulty finding anything concrete.  Is it possible to carry a HDHP and open a HSA if your employer doesn't have that option?  I don't think my employer has that offered, so I'm hoping to open one independently of them.  My wife and I are locked into health insurance through her employer until 2016, but the premiums feel atrocious and wasteful use of our money, so I want to be prepared come the end of the year.

As always, thanks in advance for your time!

clarkm04

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Re: HSA Question
« Reply #1 on: May 09, 2015, 09:28:08 PM »
No.

If both your employers don't offer a HDHP, you can't open an HSA.

Raislin

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Re: HSA Question
« Reply #2 on: May 09, 2015, 09:35:57 PM »
I suspected as much, but couldn't find it explicitly stated as such.  Thank you.

MDM

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Re: HSA Question
« Reply #3 on: May 09, 2015, 09:55:06 PM »
I suspected as much, but couldn't find it explicitly stated as such.  Thank you.

Maybe...maybe not.  E.g., see http://www.irs.gov/publications/p969/ar02.html:
Quote
Qualifying for an HSA

To be an eligible individual and qualify for an HSA, you must meet the following requirements.

    You must be covered under a high deductible health plan (HDHP), described later, on the first day of the month.

    You have no other health coverage except what is permitted under Other health coverage , later.
...
Other health coverage.   You (and your spouse, if you have family coverage) generally cannot have any other health coverage that is not an HDHP. However, you can still be an eligible individual even if your spouse has non-HDHP coverage provided you are not covered by that plan.

In other words, it appears you could structure your 2016 coverage to allow an HSA.  Up to you to decide if it is worthwhile

seattlecyclone

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Re: HSA Question
« Reply #4 on: May 09, 2015, 10:21:21 PM »
No.

If both your employers don't offer a HDHP, you can't open an HSA.

This is false. There's no rule that says you have to purchase insurance through your employer. Most people whose employers offer health insurance offer subsidized plans so buying a plan on the open market is foolish, but if your employer-offered coverage isn't subsidized much (or at all), you may find a better deal elsewhere. If you do buy your own policy, and that policy is an HDHP, you would be able to contribute to an HSA.

Raislin

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Re: HSA Question
« Reply #5 on: May 11, 2015, 06:24:24 PM »
All good things to know.  I've read a little more and it seems a HDHP and HSA could be a bit silly without the benefits of employer contributions.  I'll continue to look into it over the next year.  Perhaps I can talk my employer into offering these options.

kendallf

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Re: HSA Question
« Reply #6 on: May 11, 2015, 06:47:18 PM »
The tax advantages of an HSA are nice, but generally they'd be much less than the employer contribution toward your premiums. 

I'm a federal employee and the gov't pays 3/4 of our premiums.  Then we have an excellent option to pick a HDHP and the insurance company puts some of our premium back into our HSA in what's known as 'premium pass-through'. 

My MHBP high deductible premium is much cheaper than that of a low deductible plan like BCBS anyway, and then they kick $1650 back into the HSA each year.  Top that with being able to contribute $5000 tax-free myself (no SS tax, even) and these plans are cheaper than a low deductible plan even if we hit the deductible each year.

This is a good thing since my wife just had rotator cuff surgery.. we hit the deductible and then some.