Health insurance question?

[boatman37]

Questions/opinions/experience?
Time to renew...so I currently have a $500 deductible plan that costs $589 every 2 weeks for me and my wife. There is no HSA with this plan. There is also a $1500 deductible plan that will cost $426 every 2 weeks...savings of $330-ish per month but does offer an HSA. Thinking of dropping to the 1500 plan and adding about $250/month into my HSA. Cigna is the carrier.

There are a few differences in coverage. Mainly the $500 plan covers 100% after deductible and the 1500 covers 80% after deductible but these costs should be covered by the HSA account. One of the bigger differences is chiropractic is $50 copay vs 80% for the 1500 plan. I go to the chiropractor 4 or 5 times a year and never use up my deductible except for this past year cause I had hernia surgery.

The issue is we just got the packet Friday and have to submit it by tomorrow afternoon and they have been out of office since then so nobody to answer any questions.

I know this will be widely opinion based and situations will differ but I hate dealing with this stuff and trying to weigh pros and cons of each

 

[Golfman25]

Ok, pretty simple. What is you max out of pocket on both plans. Is the deductible for each you and wife? Or combined.

Current plan: If my math is right, you're paying 589 x 26 payments = $15,314. Plus, 1 $500 deductible, then 100% coverage = you're paying $15,814/year for healthcare. Plus copays?

HSA plan: 426 x 26 payments = $11,076. Plus, 1 $1500 deductible. = $12,576. Then you're paying 20% up to a certain amount, your max out of pocket. Lets say its $3000. So you have $1500 to pay from the 20% which = another $7500 med expense. So your total would be $12,576 + $3000 (deductible and max out of pocket) = $15,576. Basically the same as above -- funny how that works right.

So basically, you end up paying about the same if you use the insurance. It's just a matter of how you pay for it -- old pay is upfront via premiums, HSA is as you use it. Since you don't even go thru your current deductible, it doesn't sound like you're using it. Then go with the HSA.

 

[mrsrobinson]

I switched to HSA a few years ago and love it, haven't used it all, stashing it aside for retirement medical expenses. So I've always opted for the highest deductible HSA I can, because I rarely go to the doctor.

 

[WaveDancer01]

I went to a HSA about 5 years ago. I maxed it out. I wished I had done it earlier. I retired this year and it is nice knowing I have something to help with medical bills.

 

[highslice]

I switched to HSA a few years ago and love it, haven't used it all, stashing it aside for retirement medical expenses. So I've always opted for the highest deductible HSA I can, because I rarely go to the doctor.

I used to say that....My heart attack through no fault of my lifestyle was a $100K+ episode. I paid $250 for the emergency room and something less than $100 for the cardiac cath and overnight stay at another hospital. Of course I don't really have that choice. Wife is a type 1 diabetic with an insulin pump, that shit is expensive and we hit our deductibles and max out of pocket by April every year. Brandon hasn't helped with the insulin...

 

[boatman37]

out of pocket maximums for the 500 plan (non-HSA) is $3500 individual/7000 family. The 1500 plan is $6000/12,000.

In a typical year we have pretty minimal medical needs. Between all co-pays we probably spend about $400-500/year max but we are 53 and know anything can happen.

 

[Golfman25]

out of pocket maximums for the 500 plan (non-HSA) is $3500 individual/7000 family. The 1500 plan is $6000/12,000.

In a typical year we have pretty minimal medical needs. Between all co-pays we probably spend about $400-500/year max but we are 53 and know anything can happen.

So the simple math from my above numbers is in the even of a major issue:

Current Plan: $15,314 premuims + $7000 max out of pocket = $22,314 is your total exposure.

HSA Plan: $11,076 premiums + $12,000 out of pocket = $23,076.

See how that works -- essentially the same in the event of a castsrophe. Since you're a light user, the HSA is the way to go. You'll probably feel like you "spend" more as there are more upfront costs for care, but you're saving on the premiums.

 

[Pirate Lady]

I went to a HSA about 5 years ago. I maxed it out. I wished I had done it earlier. I retired this year and it is nice knowing I have something to help with medical bills.

Yep, retired with 25K in mine. Only problem is its use or lose, so if I keel over, that is 25K gone.
So my options are stay healthy, die quick, lose 25 grand
or get real sick, burn thru the 25 then die miserable in a hospital bed.
Nice to know I have options.

 

[WaveDancer01]

Yep, retired with 25K in mine. Only problem is its use or lose, so if I keel over, that is 25K gone.
So my options are stay healthy, die quick, lose 25 grand
or get real sick, burn thru the 25 then die miserable in a hospital bed.
Nice to know I have options.

Once you hit 65, you can use it for non-medical expenses. But you will have to pay taxes on any amount not used for medical.

 

[Golfman25]

Yep, retired with 25K in mine. Only problem is its use or lose, so if I keel over, that is 25K gone.
So my options are stay healthy, die quick, lose 25 grand
or get real sick, burn thru the 25 then die miserable in a hospital bed.
Nice to know I have options.

I think the HSA is transferred on death to your named beneficiary or your estate. You don’t lose it.

 

[boatman37]

I went with the 1500 with the HSA. Seems the consensus here and after talking to my daughter who used to sell insurance, decided that might be best. Putting $125/pay into the HSA so $3000/year. Will see how that works out. Maybe after a few years I'll cut that back or add more, will see.

Thanks!

 

[spikedaddy99]

It's a nightmare. My company's premiums went up 38% from last year because we hired a person with a chronic medical condition.

 

[boatman37]

i used to pay 350/month for family. now i pay 1200/month just for me and my wife. if we had a kid on here it would be 2004/month

 

[Flyer5]

i used to pay 350/month for family. now i pay 1200/month just for me and my wife. if we had a kid on here it would be 2004/month

I was up to 2100/ month . My wife, me and my daughter. I went the Medishare route 2 years ago. Been working good so far and is $360/ month. I keep $20000 set aside if necessary. I should look into a hsa.

 

[Pirate Lady]

Wave & Golf. Nobody told me that. I just met taxman yesterday, be meeting him next month. I will inquire.
See this site is good for something besides big boob pics.

 

[highslice]

i used to pay 350/month for family. now i pay 1200/month just for me and my wife. if we had a kid on here it would be 2004/month

There's your "Affordable Care Act" savings for you.

 

[JayhawkCurtis]

We went HSA route 3 years ago, company contributes 2k a year, I think I am somewhere around 3k a year, 5k deductible. Wife and myself pretty healthy except for my hearing and her eyesight, we are literally like the hear no evil, see no evil movie in real life. Key is to go 3 years with no serious health problems, by then your bank is big enough to take a little hit