Will HSA Plans Be Eliminated in 17'?

[Yagents]

Under the category of "you have to read it to know what's in it", it seems HHS is making every effort to eliminate HSA plans in 2017. If true, such a shame, and stupid:

Health Savings Accounts & Obamacare -- Affordable Care Act Is Killing HSA

HHS to Raise Americans

AND...........the recent DOL ruling on fiduciary standard affects HSA's too:

DOL: Fiduciary rule applies to HSA advisors | LifeHealthPro

 

[somarco]

Counterpoint .....................................

Standardized plans don't signal the death of HSAs

 

[kgmom219]

Practical Point......

Who cares? If you need an HSA compliant plan you probably either aren't subsidy eligible OR have manipulated your MAGI to get there. Both articles are referring to On Ex. If they are available off ex, we are fine.

Assuming off ex bronze pays a commission

 

[WCMason]

Practical Point...... Who cares? If you need an HSA compliant plan you probably either aren't subsidy eligible OR have manipulated your MAGI to get there. Both articles are referring to On Ex. If they are available off ex, we are fine. Assuming off ex bronze pays a commission

I care; would hate to lose my HSA. It's like having a second IRA but with no RMD. I can max it out and exclude $7,750 from taxes and no penalties to take the money out for non-medical after 65. I don't need one, but definitely want one as long as I can.

 

[HealthGuy]

who offers a bronze HSA plan off exchange anymore ha ha ha, sad but true

 

[kgmom219]

I care; would hate to lose my HSA. It's like having a second IRA but with no RMD. I can max it out and exclude $7,750 from taxes and no penalties to take the money out for non-medical after 65. I don't need one, but definitely want one as long as I can.

Are you subsidy eligible? Based on other posts, I'm guessing not. If its still available Off Exchange, this won't affect you. Both articles are referring to how HSA compliant plans may not be available On Exchange.

Healthguy....Humana had one in a lot of areas.

 

[Yagents]

KG, I disagree.
Half my clients own HSA's.
The tax deductions is the only thing that makes this thing go down easier.
Remove that, and real after tax premiums go up.
These rules or speculation of the rules, dictate both ON and OFF markets.
Think about CAT plans, they are eliminated from HSA for two reasons: 3 copays and a deductible that's higher than HSA allowed amount.
This is what they are possibly doing for 2017, it is optional for the carriers, but more will migrate to the higher deductible/OOP to keep price down, and reduce HSA eligibility.

This is all about the HSA tax code requirements, butting up against the proposed plan structures.

The off market is also imploding.
Humana - won't offer the PPO next year in all probability with Aetna merger.
Aetna - did not allow OFF exchange purchases in AZ at all. 1 plan in FL.
BCBS AZ - offered mirrored plans ON and OFF
Cigna - with Anthem purchase, they didn't offer any OFF in AZ, and 1 plan FL.
UHC - pulled OFF exchange plans early on in OEP.

All I see is simplification at the carriers next year - less offering, mirrored plans, only ON exchange distribution. There will be exceptions, but very few.

IN past years, the reason to buy off market was for better networks, that will be gone next year. Now the only reason to buy off market will be to avoid the gov't middleman, if the carriers even allow it. (see Aetna above)

 

[HealthGuy]

I do know of one small regional carrier in my area who is designing an on exchange HSA plan for next year...Many likely won't buy that plan however as it has a network that is too expensive. Its amazing how many of my higher income people not eligible for tax credits are actually now beginning to drop their coverage, even if it is or was HSA eligible.

Even with the HSA riding along to help lesson the blow, the increased costs for higher income earners as a result of this law is just pure ugly. The uninsured are becoming the upper middle class !

 

[Ann H]

I like HSAs, too. In AZ, you could get an HSA with CSR. The richest CSR made the deductible too low to qualify for HSA, but the other levels didn't.

Next year, I'm doing no ON exchange, so I have no beef about this problem personally. I just don't like where our nation is headed. The carriers will sell high deductibles anyway, it just will be WITHOUT the savings account. That's awful.

For years, I've said the middle class will be the uninsured class. I don't agree that it's the UPPER middle class (yet), but certainly the 400% to 500%, particularly if they are families. Not so if they are couples (especially older couples), nor if they are single young professionals with high income. However, next year, we might be there!

 

[kgmom219]

KG, I disagree.
Half my clients own HSA's.
The tax deductions is the only thing that makes this thing go down easier.
Remove that, and real after tax premiums go up.
These rules or speculation of the rules, dictate both ON and OFF markets.
Think about CAT plans, they are eliminated from HSA for two reasons: 3 copays and a deductible that's higher than HSA allowed amount.
This is what they are possibly doing for 2017, it is optional for the carriers, but more will migrate to the higher deductible/OOP to keep price down, and reduce HSA eligibility.

This is all about the HSA tax code requirements, butting up against the proposed plan structures.

The off market is also imploding.
Humana - won't offer the PPO next year in all probability with Aetna merger.
Aetna - did not allow OFF exchange purchases in AZ at all. 1 plan in FL.
BCBS AZ - offered mirrored plans ON and OFF
Cigna - with Anthem purchase, they didn't offer any OFF in AZ, and 1 plan FL.
UHC - pulled OFF exchange plans early on in OEP.

All I see is simplification at the carriers next year - less offering, mirrored plans, only ON exchange distribution. There will be exceptions, but very few.

IN past years, the reason to buy off market was for better networks, that will be gone next year. Now the only reason to buy off market will be to avoid the gov't middleman, if the carriers even allow it. (see Aetna above)

That is not what I got from the articles. But the point I am trying to make is:

1. HSA plans (and by plans, I am inferring both the benefits and HSA account. Not the mama's who by $6K no copay plans because they are free) are bought by people who care about tax deductions
2. By definition, most people who care about tax deductions are not subsidy eligible (and if they are manipulating the MAGI, I'm not real concerned with them, anyway)
3. If you want an HSA plan, my assumption is you are not subsidy eligible, so buying Off Ex is not an issue.
4. Plans are not identical here. (Regional Issue?)
5. I'm with Ann on the income level. 400-500% are going to have major concerns next year