Author Topic: New HSA Plan at work  (Read 1390 times)

runningthroughFIRE

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New HSA Plan at work
« on: November 03, 2015, 12:01:32 PM »
The healthcare plan at my employer is changing next year to an HSA plan, and I'm not sure if it would be beneficial to enroll for my specific situation.  Under the plan, my employer will contribute $500 for the year up front into the HSA, and my monthly premiums would be $65 per month.  Preventative care is covered 100% under the plan, and I am in generally good health, so I don't expect to have medical expenses in excess of getting glasses/contacts and routine dental (which would not exceed the deductible).  I would be maxing out the HSA if I enroll, but would be in the 15% tax bracket regardless of contribution amount.

Where my uncertainty arises: because I am so young, I can be covered on my parents' healthcare.  There is no incremental cost to me/my parents for being on my mother's plan, and her coverage is similar to mine.  My employer would pay me an additional $1,800 taxable income to not be covered under their plan, but I would have to travel out of state (about 3 hours) to get in-network treatment through my mother's healthcare plan.

What are some others' opinions on this?  I am thinking it would be better financially to be on my mothers' plan, but the tax advantages of the HSA are tempting.  I am single for tax purposes and would be enrolling as employee only in the healthcare plan.

thingamabobs

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Re: New HSA Plan at work
« Reply #1 on: November 03, 2015, 12:58:17 PM »
I was all for you staying with your mother's plan until the 3 hour drive to get in-network treatment. While you are young and healthy, that does not mean accidents won't happen. One trip to an out of network ED and follow up care would wipe out the $1800 and then some. I would definitely sign up for your own plan.

Mother Fussbudget

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Re: New HSA Plan at work
« Reply #2 on: November 03, 2015, 05:15:21 PM »
I was all for you staying with your mother's plan until the 3 hour drive to get in-network treatment. While you are young and healthy, that does not mean accidents won't happen. One trip to an out of network ED and follow up care would wipe out the $1800 and then some. I would definitely sign up for your own plan.
+1.  My thoughts exactly. 

It sounds like you know about using an HSA account as a tax-advantaged retirement account.   Personally, I max out my HSA every year, and pay any medical expenses out-of-pocket, and keep the receipts so I can withdraw that money at any-point-in-the-future.   But I'm closer to retirement age than you.  Which ever route you take, all the best.

Merrie

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Re: New HSA Plan at work
« Reply #3 on: November 03, 2015, 07:23:57 PM »
I was all for you staying with your mother's plan until the 3 hour drive to get in-network treatment. While you are young and healthy, that does not mean accidents won't happen. One trip to an out of network ED and follow up care would wipe out the $1800 and then some. I would definitely sign up for your own plan.

I agree. This sounds like a pain in the neck and not worth it.