Open Enrollment for Benefits

[Da_Sperm]

Open enrollment for my job begins in October and they are reducing the cost of health insurance, but reducing the premiums means they are increasing the deductibles.

One added Health Plan for 2008 is a High Deductible Plan. This plan has the highest deductible ($2200/per year/family), but it has a feature called the "Health Savings Account".

The HSA is similar to the Flex Savings Account in that you can use pre-tax dollars for medical expenses, HOWEVER 1) you have to be enrolled in a High Deductible Medical Insurance plan, 2) you don't have to use up all the money by the end of the year, it rolls over and 3) it EARNS INTEREST because it works the same as a 401K.

I'm thinking about going this route in 2008. The deductible is $1000 more per year than the low deductible plan, but the premium is $1200 less per year than the low deductible plan.

Any thoughts?

 

[cat daddy]

Does your plan also offer an HRA plan? The HRA is where the employer funds the money in the account instead of you using your money. If you don't use up the HRA money, you can roll it over to the next year just like the HSA account. Now if you leave your employer, the money in the HRA stays with the company, but if you have the HSA, you can take it with you.

 

[Fortitude]

Sounds like a wise choice. I read about HSA's in April as I was preparing my taxes. I thought they were the same as a FSA.

 

[cat daddy]

Sounds like a wise choice. I read about HSA's in April as I was preparing my taxes. I thought they were the same as a FSA.

They work in similar ways, but they are not the same. With the HSA, the money has to be in the account before you can file a claim. (similar to dependent care accounts) Another big difference is, with an FSA you must use it or loose it. That's not the case with an HSA. You can roll the money over from year to year. Once you leave, you can take the cash and then pay taxes or simply roll it into an IRA.

 

[MsJag4Jag]

That was an option for us, but my best option came with the company for ALL of my premium and I meet the $220 deductible. After that is $15 per visit.

 

[ms.sonic96]

Sounds like a wise choice. I read about HSA's in April as I was preparing my taxes. I thought they were the same as a FSA.

Yeah, it's a good plan for those who don't have to go to the doctor alot. When I was single, I wish my company had it.

 

[Da_Sperm]

Does your plan also offer an HRA plan? The HRA is where the employer funds the money in the account instead of you using your money. If you don't use up the HRA money, you can roll it over to the next year just like the HSA account. Now if you leave your employer, the money in the HRA stays with the company, but if you have the HSA, you can take it with you.

Yeah, we have 3 plans.
1) High premium w/ $1000 deductible. (FSA)
2) High premium w/ $1000 HRA account and $1000 deductible. (HRA)
3) Low premium w/ $2000 deductible. (HSA & Limited LFSA).

All will cost you the same in the end. With option one, you are paying for your coverage up front, whether you use it or not. Option two, the company pays the first $1000, you pay the 2nd $1000, then you both pay a %. With option 3, you pay the first $2000, but your deductible is low.

Each option, the company gives you $740 worth of incentives that can be used toward your deductible or your HSA. Incentives like getting yearly checkups, gym memberships, online health surveys, etc.

You answered one of my questions, which was "Does the money have to be in the HSA before you can get reimbursed on a claim?" I know with the FSA, it doesn't. People at my job have gotten $4000 lassic (msp) surgery on Jan 1st, even though they don't have a dime in the FSA and they got reimbursed every dime within 10 days. The company just took the money out of their paycheck over the year. Now if they quit or got laid off before the end of the year, the company got STUCK with the bill.

 

[cat daddy]

One of the things I like about Consumer Driven Healthplans (HRA/HSA Plans) is the consumer or member gets to see how much money they are really paying for healthcare. In the old days of the traditional HMO, you paid your $15/$25 dollar copay and really didn't know what the total cost was. With these new plans, you can see the actual cost per visit and per year for each family member.

Most medical plans offer web based access to your benefits. When I'm out talking to members and employer groups I'm always pushing using the web to check your benefits, provider network and claims payment for you and your family members.

 

[jag4life]

Sometimes it is cheaper to get your own coverage. If the best plan the company can give you is high premium/1K deductible, then you can probably save by going with an individual plan.

I like the idea of a HSA with a high deductible though. Very nice.

 

[cat daddy]

I here that a lot J4L and I always encourage people to really do their homework and make sure they are getting similar plan. Total premium for a family plan through a group plan can cost $700.00 per month. An individual plan with the exact same benefits can easily add $300-$400 per month.

 

[jag4life]

I here that a lot J4L and I always encourage people to really do their homework and make sure they are getting similar plan. Total premium for a family plan through a group plan can cost $700.00 per month. An individual plan with the exact same benefits can easily add $300-$400 per month.

Exactly!

 

[Da_Sperm]

I actually like the high deductible because 1) it keeps the cost down and 2) it stops the consumer from running to the doctor when they break a fingernail.

Like I said earlier, our company is giving dollar incentives for you if you get a flu shot, health club memberships, yearly checkup, etc. Do these things, and you will stay out of the doctors office more.

In our 2008 high deductible plan, the premiums for the year for an employee with a spouse and kids is $1400. That is like $125/month. Now, I would be a fool to do this plan and not have $2000 in the bank to cover the deductible.