Author Topic: Weigh in on HSA option  (Read 1119 times)

aneel

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Weigh in on HSA option
« on: June 05, 2017, 04:26:37 PM »
I've just started a new job and have a HDHP/HSA insurance option which I am strong considering.  Please see below for the details - all of your opinions and thoughts are appreciated!

Situation: deciding on insurance options for myself, husband and soon to be adopted 4 year old son
Complication: Son (healthy!) will be eligible for Medicaid as a secondary insurance until he's 18.  I know that in the case of a medical claim, primary insurance is billed first, and then Medicaid picks up the rest, not sure how this impacts things like deductibles.

Options (monthly pretax cost):
Standard PPO ($347)
HDHP/HSA ($265)
BOTH OPTIONS cover preventative at 100%

HSA details: family deductible is $5,200.  Employer will contribute $2,600 to HSA annually.

For a family with no chronic illnesses/conditions, the HSA seems like the better option, and gives more tax sheltering options.  We currently put $600/month into a taxable account, but I think we would switch at least a portion of that to the HSA if we went with this option.

Bonus points if you know how HDHP/HSA interacts with Medicaid for a dependent.  I have already learned that a dependent on Medicaid does not disqualify the family for an HSA, but little other info was searchable on the net.

TIA!


v8rx7guy

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Re: Weigh in on HSA option
« Reply #1 on: June 05, 2017, 04:35:28 PM »
I can use a spreadsheet that I have to put together a graph for you, but I need to know what the deductible is for the standard PPO and what the co-insurance (10%, 20%, ?) & max OOP is for each of the options.  Also, do you need to contribute any of your own $$$ to get the $2,600 from your employer?
« Last Edit: June 05, 2017, 04:39:44 PM by v8rx7guy »

aneel

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Re: Weigh in on HSA option
« Reply #2 on: June 05, 2017, 04:47:02 PM »
Thank you!

I can use a spreadsheet that I have to put together a graph for you, but I need to know what the deductible is for the standard PPO and what the co-insurance (10%, 20%, ?) & max OOP is for each of the options.  Also, do you need to contribute any of your own $$$ to get the $2,600 from your employer?

The PPO deductible is $0; OOP is $4,000; coinsurance is 100% with pretty standard copays $25 (dr visit) $50 (specialist) and $100 (ER)

The employer puts in the $2,600 with no requirements of my own contribution.  Both are great options, but as a mustachian I want to choose the best :)

v8rx7guy

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Re: Weigh in on HSA option
« Reply #3 on: June 05, 2017, 05:05:34 PM »
I had to guess what your Max OOP and coinsurance is for the HDHP ($10K and 10%) let me know if this is wrong.  I have attached a graph as to what it would look like for you.  The break point is $4,000 in total yearly medical costs where the regular PPO becomes the better deal. 

Edit: Please ignore the "PPO_low" this spreadsheet is made to compare 3 different plans.  Also, I just realized I should have changed the title to "2017 Insurance compare".

Edit #2:  This does not take into consideration the tax advantages.
« Last Edit: June 05, 2017, 05:30:19 PM by v8rx7guy »

MDM

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Re: Weigh in on HSA option
« Reply #4 on: June 05, 2017, 06:12:59 PM »
You could also try the 'HDHP Analysis' tab in the case study spreadsheet.