HSA's Will Survive in IFP Market

[Yagents]

Great news!! We already knew that group plan HSA's will survive PPACA, but it now looks like HSA's will survive and probably thrive in the IFP market, especially in the bronze metal category. Consumers will flock to these cheaper plans to escape the high costs of Obamacare

The HSA Coalition » SHOCK: Health Savings Accounts (HSAs) Thrive Under ObamaCare's Actuarial Value Rules

 

[CHUMPS FROM OXFORD]

Good news............

 

[AllenChicago]

I wonder if the HSA premium for Exchange plans will be low enough to entice people to get insurance, vs. paying the annually increasing penalty for not having insurance?

Health and Human Services has said that they have at least 75% of the eligible population participating in a state exchange by the end of 2016 to offset medical claim costs.

On one hand, keeping premiums low by allowing High Deductible (HSA Qualified) plans should make subsidy-assisted premiums affordable. But on the other hand, a low low premium means less money available to offset the medical claim costs.

I wonder if an HSA will still have the same tax advantages? The govt could say that if you received a subsidy, you can't deduct the $$$ you put in an HSA account. Oh well, anything HHS does to add another layer of decision-making with exchange purchases adds value to our (agents) service and expertise.

Anyone know when companies are supposed to submit their plan/premium matrixes to the Exchanges for approval? If the open-enrollment period starts on October 1, 2013 as planned, we should know the premiums from a least a couple of carriers well before then. Although, it may be a closely guarded secret.. like a sealed construction bid.
-ac

 

[TXINSURANCE]

Bronze plans to my knowledge are not subsidized. Silver and above only. FYI.

 

[Yagents]

Bronze plans to my knowledge are not subsidized. Silver and above only. FYI.

Subsidies are based on the silver plan for everyone, but those subsidies can be used to buy any of the 4 metal plans including bronze. So, in that situation, bronze HSA plans will look very attractive. But, if the client wants to pay more for a gold or platinum plan, they can do so and use the silver plan subsidies. If this wasn't the case, the gov't would have no idea how much it would have to lay out in subsidies, and the CBO couldn't score it. If income is low enough, there will also be help to pay for the out of pocket cost sharing (deductible/coinsurance)
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I wonder if an HSA will still have the same tax advantages? The govt could say that if you received a subsidy, you can't deduct the $$$ you put in an HSA account.

Anyone know when companies are supposed to submit their plan/premium matrixes to the Exchanges for approval? If the open-enrollment period starts on October 1, 2013 as planned, we should know the premiums from a least a couple of carriers well before then. Although, it may be a closely guarded secret.. like a sealed construction bid.
-ac

HSA contributions and tax advantages are NOT affected by PPACA (except the 10% up to 20% penalty). In fact, they are more attractive because the itemized deductions are going up from 7.5% to 10% of AGI on schedule A, where HSA's are a first dollar deduction on front page of 1040 tax form.

I believe plans/prices will be submitted by June/July, but we won't know until they roll out in Sept/Oct 1st.

 

[ABC]

Thanks For Posting this!

This is huge news!

I bet the HSA will be the primary offering from the private industry inside the federal exchange.

 

[Ann H]

No doubt about it, this is huge news.

 

[AllenChicago]

HSA contributions and tax advantages are NOT affected by PPACA (except the 10% up to 20% penalty). In fact, they are more attractive because the itemized deductions are going up from 7.5% to 10% of AGI on schedule A, where HSA's are a first dollar deduction on front page of 1040 tax form.

I believe plans/prices will be submitted by June/July, but we won't know until they roll out in Sept/Oct 1st.

Thanks for the reply and the useful info, YAgents. It's uncharacteristic of the Feds to allow double-dipping (Subsidy + HSA deduction), but it's a WINNING combination. Hopefully HHS won't outlaw Almost-Major-Medical HSA policies from being sold on the open market. Those are what I want to focus on selling.
-Allen

 

[Yagents]

Thanks for the reply and the useful info, YAgents. It's uncharacteristic of the Feds to allow double-dipping (Subsidy + HSA deduction), but it's a WINNING combination. Hopefully HHS won't outlaw Almost-Major-Medical HSA policies from being sold on the open market. Those are what I want to focus on selling.
-Allen

There is no double dipping. One is for premiums (tax free subsidies), and one is for out of pocket expenses (HSA contributions). I tax deduct my premium now, group plan employees do the same. I and group ee's tax deduct out of pocket expenses through HSA's/FSA's now.

What's an "almost" major medical HSA? One without Rx, or outpatient? Those won't be allowed as even an HSA must cover all 10 EHB's.

 

[AllenChicago]

There is no double dipping. One is for premiums (tax free subsidies), and one is for out of pocket expenses (HSA contributions). I tax deduct my premium now, group plan employees to the same. I and group ee's tax deduct out of pocket expenses through HSA's/FSA's now.

What's an "almost" major medical HSA? One without Rx, or outpatient? Those won't be allowed as even an HSA must cover all 10 EHB's.

Oh.. forgive me for being cynical about our Government. I didn't think Uncle Sam would send someone money (subsidy) for Health Insurance AND ALSO allow that someone to lower their taxable income using the government-subsidized policy as the empowerer of a HSA.

When I say "Almost" Major Medical, I'm referring to the same Fee-For-Service policies that we sell today. Why must they have maternity and all the other Essential Health Benefits, YAgents? If a policy doesn't comply with the ACA, it's not forbidden.. it just can't be legally called a Major Medical Health Insurance Plan...right? Those plans will cost much less than policies sold on the Exchange, and be just as good as what we're selling today.

That's what many of the companies that will not participate in the Exchanges are planning on doing. Are they not going to be allowed to do this? The selling of less-expensive Almost Major Medical is the strategy that many of the local agency owners are planning to pursue. Will it get shot down by HHS, YAgents???