The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: elmo1022 on April 23, 2018, 08:41:08 AM
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Hey everybody - health insurance question here. My wife and I are expecting a baby in August of this year and are currently enrolled in a more standard health plan (higher premium for lower deductible) through my employer.
Does anybody know if the birth of a child would count as a "qualifying event"? Specifically one that would allow us change insurance plans to a high deductible plan and further allow us to contribute to a health savings account? I am getting conflicting answers from my corporate HR. One HR representative says that I should be able to switch to a High Deductible Plan for a family because having a baby counts as a qualifying event. Another HR representative says I am merely allowed to add the child on as a dependent to my existing plan and my coverage would change from 'Employee + Spouse' to 'Family'.
Is there something in the ACA that would clarify this discrepancy? Or does this fall under specific plan permissible actions. I'm thinking it would save us a boatload of money to be able to switch to an HSA plan after the delivery if everything goes well with the delivery/baby health.
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Having a baby is a qualifying event.
https://www.healthcare.gov/glossary/qualifying-life-event/
HDHP was the wrong choice for us.
Baby was on my PPO for the first 9 months of her life, and super healthy; had one copay, but just well baby visits.
We switched her to HDHP at open enrollement (her Dad's plan)- we've now had $2,000 worth of charges for recurrent ear infections in 4 months. $3,000 to go to meet that deductible...
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Another HR representative says I am merely allowed to add the child on as a dependent to my existing plan and my coverage would change from 'Employee + Spouse' to 'Family'.
This was the case for us when we had our first child (federal gov't employee.) It's a qualifying life event, but what you're allowed to do is related to the kind of event it is - you're allowed to switch to family coverage because of your +1, but not insurers. You'll be able to change insurance plans during open enrollment.
HDHP would have been the wrong move for us too. I think we'll be waiting til we're done having kids and they all get out of the very young child age and into school.
Congrats! I'm also due in August with #2.
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My plan allows me to add a dependent to the current plan only for the qualified event.
I can only change plans during open enrollment.
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Be aware that even if you are allowed to switch plans effective on the delivery date, it's likely that any deductibles will reset at that time.