Double coverage. Employer HMO with Employer High deductible and HSA contribution.

[Carne]

Hey I'm hoping that someone can answer this employer group policy question I have. I am covered under my wife's employer group HMO and I recently got a new job that offers a high deductible option with HSA that they contribute to. Would I have any issues with keeping the coverage I have through my wife's employer and also enroll into this HSA option with my new employer? Would I also be able to enroll my wife and child (who are also covered on my wife's employer plan) into the HSA option with my new employer to get the addition contribution that is offered?

Thanks!

 

[LostDollar]

(Caveat, I am not an agent)

[EXTERNAL LINK] - Publication 969 (2022), Health Savings Accounts and Other Tax-Favored Health Plans | Internal Revenue Service

Other health coverage.

If you (and your spouse, if you have family coverage) have HDHP coverage, you can’t generally have any other health coverage. However, you can still be an eligible individual even if your spouse has non-HDHP coverage, provided you aren’t covered by that plan.

 

[scagnt83]

Hey I'm hoping that someone can answer this employer group policy question I have. I am covered under my wife's employer group HMO and I recently got a new job that offers a high deductible option with HSA that they contribute to. Would I have any issues with keeping the coverage I have through my wife's employer and also enroll into this HSA option with my new employer? Would I also be able to enroll my wife and child (who are also covered on my wife's employer plan) into the HSA option with my new employer to get the addition contribution that is offered?

Thanks!

You personally need to have the high ded plan to participate in the HSA.

Your wife and child would need to be covered by the high ded plan to participate as well.

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I get why you would want to. If you have any negotiating power, ask for a bonus equal to the HSA contribution since you are not going on their plan. They are probably saving $500/m in premiums by not having you on the plan.

 

[fed up]

Another question/issue to consider: you JUST got the job. How long has your wife been with her employer? My wife has been with same employer for 35 years and has covered the family. Pandemic kicked my butt for employment and 2 of the 3 jobs I had during pandemic had great plans. If we had switched plans during that time frame the whole family could have been without coverage until next open enrollment

 

[scagnt83]

Pandemic kicked my butt for employment and 2 of the 3 jobs I had during pandemic had great plans. If we had switched plans during that time frame the whole family could have been without coverage until next open enrollment

No, you would have had a qualifying SEP and been able to get an ACA plan, or go back on your wifes group policy, when you lost coverage with your group policy.

 

[ArioSoft]

Health Savings Account (HSA) Eligibility:

To contribute to an HSA, you generally must be covered by an HDHP and not covered by other health insurance that is not an HDHP.
If your wife's HMO is not an HDHP, you may still be eligible to enroll in your new employer's HDHP with HSA, but your wife and child may not be eligible to contribute to the HSA unless they are also covered by an HDHP.

 

[The Benefit Coach]

Ok, I realize I'm a bit late to this party, but the answer to your question is somewhat nuanced. You can enroll in the both insurance plans without a problem, but unless your wife's coverage is also an HSA compatible HDHP you can NOT legally contribute any money to an HSA and neither can your employer. The rule is that you may not be enrolled in any health plan that offers any health benefits until you meet the minimum deductible. For 2023, that's $1,500/$3,000 (single/family). For 2024, that's bumped up $100 to $1,600/$3,200. Being on any kind of plan that offers copays before meeting the minimum deductible is disqualifying.

Another mistake that trips people up are Flexible Spending Arrangements (FSA). Even if you are on a compliant HDHP, your wife enrolling in an FSA on her employers plan would also torpedo your ability to fund an HSA.

If you have been funding an HSA without being eligible, here's where it can get messy rather quickly and goes way beyond the scope of this discussion. Suffice to say, just don't do it.