HSAs Time Has Come...
- Thread starter Consuelo
- Start date
- 599
HSAs are great IF the consumer understands them. I have seen many situations where the clients get stuck with horrible bills and don't want to pay them because they don't understand the concept. If HSAs are going to become this big, companies need to explain the benefits to their employees better.
HSA's are already prevalent and saturated in the market, and believe they are responsible for the small dip recently in health care spending (a lower increase).
HSA's will not fix ACA, and the price differential between it and a copay plan are not substantial enough to warrant the plan unless tax deductions/high tax bracket are attractive enough to a client. So, it will benefit the "richer" among us.
If you have someone with moderate income, can save money, and getting subsidies already; the HSA contribution has a double whammy effect of federal tax savings and MORE APTC coming your way at tax filing time with the reduced AGI after HSA deduction.
I found (go figure) a great HSA tool for clients at Welcome to HSA Consumer. The HSA Portal for HSA Owners. Learn how to SAVE and SPEND your Health Savings Account.
Happy Texan
Expert
- 87
HSAs are fine if people use the account to build up savings in order to increase the deductibles.
If that occurs, after a few years, one's HSA balance is higher than their deductible, for growth of deductibles is limited to the growth in the CPI.
At National Prosperity Life and Health, we offer a viable alternative: Health Matching Insurance.
Through the pooling process, we are able to credit one's paid-up benefits, starting at 8% per month, eventually growing to 300 % per month.
This accelerated appreciation of paid-up benefits translates into accelerated paid-up growth of increasing deductibles.
Working with Milliman, for 3 years, we felt ready to apply to the Texas Dept. of Insurance last month for our insurer license on our patented product.
We plan to make the HMI product available, initially, for self-funded employers of 200 employees or more.
Savings over time can be 60-80% off of the original premium, for our product negates much of the medical inflation.
We expect Department approval by next month.
Don Levit,CLU,ChFC
Exexcutive VP of Finance for NPLH
If that occurs, after a few years, one's HSA balance is higher than their deductible, for growth of deductibles is limited to the growth in the CPI.
At National Prosperity Life and Health, we offer a viable alternative: Health Matching Insurance.
Through the pooling process, we are able to credit one's paid-up benefits, starting at 8% per month, eventually growing to 300 % per month.
This accelerated appreciation of paid-up benefits translates into accelerated paid-up growth of increasing deductibles.
Working with Milliman, for 3 years, we felt ready to apply to the Texas Dept. of Insurance last month for our insurer license on our patented product.
We plan to make the HMI product available, initially, for self-funded employers of 200 employees or more.
Savings over time can be 60-80% off of the original premium, for our product negates much of the medical inflation.
We expect Department approval by next month.
Don Levit,CLU,ChFC
Exexcutive VP of Finance for NPLH
- 1,741
Thanks for the HSA link, Yagents. Due to insurance increases, clients see that the additional $2,000 to $4,000 or more on premiums for plans that still have, say $4,000 deductible and max out of pocket of $7,250 are best. Even for someone with high bills, it's hard to make the case that spending money up front beats tax deducting 100% of the contribution, and keeping premiums. Imagine spending $3,000 more a year for a plan that would still have a $7,250 out of pocket. $3,000 + $7250 for a catastrophic illness, vs keep the $3,000 and use it + more $ and reduce taxes. In previous years when the difference between HSA plans and others wasn't so high, and for some younger singles now, where it isn't, the HSA is a bit harder sell. With more income, HSA is the way. I tell people above $6550 or $7250 you are covered unlimited. Below that, you decide how much you want to spend to buy back coverage above $0 deductible. Wrote more this year than ever. I also want to shout out to First American Bank as a custodian for HSA accounts. Good choice.
- 1,741
I just had a rep at HC.gov tell me that my client couldn't lower their income by contributing to an HSA. What? They said the income proof sent in, a document showing the sole income from SS minus HSA contribution, wasn't accepted. Is it due to the rule that all SS income has to be counted?
My client is not making a big deal out of it, because they have already made income plans that set them up for APTC with or without the HSA contribution that will last for the short 1 1/2 years until the younger spouse reaches 65. Their bronze plan premium is so low, it's crazy, but that's 2018.
My concern is those few, but concerned clients, who are so close to the 400% maximum, that an HSA could save them. I emphasize to them they must absolutely plan with a tax professional.
HC.gov says they don't see HSA's in their list of items that aren't countable as income deductions.
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- 1,011
Looking to get an HSA... anybody recommend a good carrier...? know nothing about health ins
I just had a rep at HC.gov tell me that my client couldn't lower their income by contributing to an HSA. What? They said the income proof sent in, a document showing the sole income from SS minus HSA contribution, wasn't accepted. Is it due to the rule that all SS income has to be counted?
My client is not making a big deal out of it, because they have already made income plans that set them up for APTC with or without the HSA contribution that will last for the short 1 1/2 years until the younger spouse reaches 65. Their bronze plan premium is so low, it's crazy, but that's 2018.
My concern is those few, but concerned clients, who are so close to the 400% maximum, that an HSA could save them. I emphasize to them they must absolutely plan with a tax professional.
HC.gov says they don't see HSA's in their list of items that aren't countable as income deductions.
I believe that HSA contributions are "adjustments" in income along the same lines as student loan interest. It is the same section on a 1040 as student loan interest deduction and alimony. Did you put their HSA annual contribution on the application where it asks for "adjustments"?
DISCLAIMER: I AM NOT A CPA I JUST PLAY ONE ON THE INTERNET!! CHECK WITH A CPA!!!!
- 6,458
I just had a rep at HC.gov tell me that my client couldn't lower their income by contributing to an HSA. What? They said the income proof sent in, a document showing the sole income from SS minus HSA contribution, wasn't accepted. Is it due to the rule that all SS income has to be counted?
My client is not making a big deal out of it, because they have already made income plans that set them up for APTC with or without the HSA contribution that will last for the short 1 1/2 years until the younger spouse reaches 65. Their bronze plan premium is so low, it's crazy, but that's 2018.
My concern is those few, but concerned clients, who are so close to the 400% maximum, that an HSA could save them. I emphasize to them they must absolutely plan with a tax professional.
HC.gov says they don't see HSA's in their list of items that aren't countable as income deductions.
Perhaps there was confusion about who was receiving the SS income in relation to who was contributing to the HSA?
- 6,458
Here is a link that provides info on a number of HSA custodians, this is for use at your own risk, i am not recommending or endorsing anything here:
Health Savings Accounts | May 2018 | Compare Health Saving Account Rates
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