Copays vs. HSA's....LEt's Get it ON!!!!!!!!!

[Crabcake Johnny]

Nice one Al. This is almost like parents pestering me about including their college kids on the plan. Bad move. Then the kid turns 24, could be uninsurable at that time and now has to find an immediate job with bene's.

I alway suggest that I write anyone over the age of 18 their own plan. It locks in insurability, it's the same damned rate and the parents can still pay for their premiums.

 

[STIBROKER]

I don't know about other states but in CA both Blue Cross and Blue Shield (two different companies) use an aggregate deductible on their HSAs. Thus, it makes ZERO sense to write a husband and wife (no kids) on the same policy. Look at the math:

Individual policy for each person age 55 (Blue Shield HSA 4000 deductible))

Husband: $273
Wife: $273
Total: $546

If I put then on a "subscirber and spouse" plan the deductible rises to $8,000:

Cost: $532

With the above plan, they must reach $8,000 before any benefits kick in. On the first plan each person has his own deductible.

If wife breaks her foot and it cost $6,000... on the first plan she will get 2,000 of benefits. On the second she gets nothing.

For $14 more a month I can cut their deductible in half. I called both BS and BC about this and they just said "Yeah, it's a personal choice." What bullshit!

I told them "And when you try to trick people (the "agregate clasue is in a footnote in 3 pt. type!) you wonder why they hold your company is such low esteem."

Al

but you can only open one hsa account per family and only use ONE POLICY TO FUND AND SPEND ON ONE MEMBER...

 

[somarco]

Each state, and each plan is different Al.

Of course in CA they do almost everything different from the other 49 . . .

 

[newmindfashion]

STI - "but you can only open one hsa account per family and only use ONE POLICY TO FUND AND SPEND ON ONE MEMBER..."

Please clarify what you mean?

Spousal HSAs are allowed. Each person person that is 55 can open a separate HSA and contribute $2850 and then the catch up amount.

In a family HSA, the policy holder can contribute the $5650 and use those funds to pay for OOP expenses for family members that are not even on an HSA compatible policy. I may be misunderstanding you post...

 

[Guest]

but you can only open one hsa account per family and only use ONE POLICY TO FUND AND SPEND ON ONE MEMBER...

Where in the tax code is this documented? I'm not doubting you... I take it back... I am doubting you.

If there is a limit of only one, it woud have been here:
http://www.ustreas.gov/offices/public-affairs/hsa/faq_contributing.shtml#hsa5

Oh, and I found the answer to my original post:

Can I claim both the “above-the-line” deduction for an HSA and the itemized deduction for medical expenses?

You may be able to claim the medical expense deduction even if you contribute to an HSA. However, you cannot include any contribution to the HSA or any distribution from the HSA, including distributions taken for non-medical expenses, in the calculation for claiming the itemized deduction for medical expenses.

Al

 

[J.R.]

Nice one Al. This is almost like parents pestering me about including their college kids on the plan. Bad move. Then the kid turns 24, could be uninsurable at that time and now has to find an immediate job with bene's.

I take it your are referencing the other companies besides Assurant that do not allow the kid to stay on?

I alway suggest that I write anyone over the age of 18 their own plan. It locks in insurability, it's the same damned rate and the parents can still pay for their premiums.

So your goal is to wrote the husband/wife a plan and any kid over 18 gets their own plan in the event that his/her health changes and/or the parents change their plan later down the road?

thanks for clarification?

 

[Crabcake Johnny]

You can put an kid 18 to 24 on the parents plan if they're full-time student but the kid has to come off the plan after age 24 (Assurants allows them to stay on the plan if they're still financially dependent on the parents.)

However, say you write a family deal, kid's 19 and in school. Now two years later the kid becomes uninsurable - now he turns 25 and must come off the parents plan. But what if he/she hasn't found a full-time job with medical benefits? Screwed.

 

[David C]

John,

Didn't Assurant one time offer guaranteed coverage for:
1. Divorcing spouses?
2. Children moving out, becoming independent?

 

[Crabcake Johnny]

Assuants does have a conversion feature where if a spouse or child on the plan can no longer remain on the plan and is uninsurable they can get a similar plan without being underwritten. But remember, not everyone sells Assurant....after all, there are cheaper plans.

 

[J.R.]

Assuants does have a conversion feature where if a spouse or child on the plan can no longer remain on the plan and is uninsurable they can get a similar plan without being underwritten. But remember, not everyone sells Assurant....after all, there are cheaper plans.

It sounds like by putting the kid on his or her own plan it accomplishes what his parents want, which is protection and security, while giving him or her flexibility down the road in the event he needs a newer plan and has more options than just sticking with Assurant because of their conversion privilege.

Here's something I just thought of. How can a spouse become ineligible for coverage? Unless the referencing is somebody who marries another individual with pre-existing conditions, I am not following the benefit.