Comments on: Annual Enrollment Time: How Much Can an HSA Save You? http://yourpfpro.com/annual-enrollment-time-how-much-can-a-hsa-save-you/ Personal Finance for Young Professionals Mon, 15 Oct 2018 22:25:14 +0000 hourly 1 By: Harry Campbell http://yourpfpro.com/annual-enrollment-time-how-much-can-a-hsa-save-you/#comment-1840 Tue, 20 Nov 2012 02:28:47 +0000 http://yourPFpro.com/?p=1412#comment-1840 If you can go 3 years between accidents you will still come out ~$1,600 ahead in this instance, since each year you are getting $1700 for free if you max out your contribution. Since the deductible is $3,500(also the out of pocket max), it only takes two years before you reach the break even point. This is assuming you have a major accident every two years which I think is pretty unlikely.

You also have to take into account the deductible for the basic(non-HSA) plan. In this case, the deductible for that plan is $750, so a major accident would get you to at least that much plus you still have the out of pocket maximum(in this case it’s $2100!

If you compare out of pocket maximums, you actually come out ahead with a HSA.

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By: Travis http://yourpfpro.com/annual-enrollment-time-how-much-can-a-hsa-save-you/#comment-1839 Mon, 19 Nov 2012 23:15:33 +0000 http://yourPFpro.com/?p=1412#comment-1839 The HSA sounds like a good idea, but a few years ago I very unexpectedly had to have an emergency surgery. Also, being somewhat active, I feel like a broken bone or lacerations that require stitches are always just around the corner.
The past 3 years or so I’ve been relatively healthy, but if I’m skiing, hiking, surfing, playing sports, etc, is it really a good idea to let go of the security of a standard health plan?

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By: Leigh http://yourpfpro.com/annual-enrollment-time-how-much-can-a-hsa-save-you/#comment-1807 Thu, 15 Nov 2012 05:59:33 +0000 http://yourPFpro.com/?p=1412#comment-1807 I think we’re just using different names because my CDHP comes with a HRA 🙂

The monthly premium difference between the HRA plan and the HMO basically equals the deductible. I wonder if they will change our premiums for the next plan year so that the HDHP one is cheaper than the HRA one. Right now, the HRA and the HDHP plans both have the same premium and same “incentive” – the only difference was in the deductibles and HSA versus not.

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By: Gen Y Finance Journey http://yourpfpro.com/annual-enrollment-time-how-much-can-a-hsa-save-you/#comment-1802 Wed, 14 Nov 2012 17:45:20 +0000 http://yourPFpro.com/?p=1412#comment-1802 My company has a lot of 20-somethings, so our premiums are pretty cheap. The company covers up to a certain amount in premiums each month, but for us young-uns, even the most expensive, cadillac plan is covered 100%. So without an incentive, the majority of the company would choose the most expensive health plan.

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By: Harry Campbell http://yourpfpro.com/annual-enrollment-time-how-much-can-a-hsa-save-you/#comment-1801 Wed, 14 Nov 2012 17:40:53 +0000 http://yourPFpro.com/?p=1412#comment-1801 I can roll my existing HSA into one with my new provider but I know there will be some type of transfer fee. I’ll have to do some research and see if it’s cheaper to roll it over or go and set up a separate account with a different HSA provider.

I think your CDHP is similar to our HRA. Our HRA pays the same premiums as the basic healthcare plan(non-HSA) but they give you $1,000 to pay for all your doctor visits. Whatever you don’t use will roll over to the next year, but you can not take it when you leave the company. I don’t think this plan is worth it at my company b/c you would save $338 in premiums by switching from HRA to HSA, so if you spend less than $838 a year, it’s worth it to go with the HSA since you can keep it when you leave the company. Our HRA is actually going away at the end of 2013 so it makes even less sense now.

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By: Harry Campbell http://yourpfpro.com/annual-enrollment-time-how-much-can-a-hsa-save-you/#comment-1800 Wed, 14 Nov 2012 17:36:48 +0000 http://yourPFpro.com/?p=1412#comment-1800 Yea usually they are a great idea for people who are self-employed or contractors(who usually don’t receive health benefits. Especially for families, the monthly premium reduction will often come very close to the deductible. If that’s the case, then it’s a no brainer!

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By: Leigh http://yourpfpro.com/annual-enrollment-time-how-much-can-a-hsa-save-you/#comment-1798 Wed, 14 Nov 2012 15:02:12 +0000 http://yourPFpro.com/?p=1412#comment-1798 Can you roll your existing HSA into one with the new provider? $12/quarter seems pretty steep to me!

I really like the CDHP with how high my health costs are, but if they were lower, it would be annoying because the employer contribution rolls over indefinitely, but you lose it when you leave the company. I have a feeling I’ll pick the HDHP one next year! I don’t know if our provider has any fees though, information was pretty low on what the account actually looked like.

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By: John S @ Frugal Rules http://yourpfpro.com/annual-enrollment-time-how-much-can-a-hsa-save-you/#comment-1796 Wed, 14 Nov 2012 13:28:27 +0000 http://yourPFpro.com/?p=1412#comment-1796 We had a HSA at my old employer and it was a nice benefit to have, as they also put $1500 into it. Now that we’re self-employed we’re looking to start a new one for ourselves as they can be a great way to take advantage of tax savings.

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By: Harry Campbell http://yourpfpro.com/annual-enrollment-time-how-much-can-a-hsa-save-you/#comment-1792 Wed, 14 Nov 2012 05:04:19 +0000 http://yourPFpro.com/?p=1412#comment-1792 Seriously, that’s awesome. I’m jealous. I guess that shows you how much your company is saving by switching you to a HSA. They are giving you $2k and still probably saving a decent amount of money.

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By: Harry Campbell http://yourpfpro.com/annual-enrollment-time-how-much-can-a-hsa-save-you/#comment-1791 Wed, 14 Nov 2012 05:03:15 +0000 http://yourPFpro.com/?p=1412#comment-1791 Interesting, I’d never heard of a CDHP until you mentioned it, but it sounds pretty similar. My HSA used to have fees at $12/quarter to maintain the account and trading fees were pretty reasonable at $8 a trade I think. The investment choices were ok but I don’t consider my HSA as part of my overall AA. I invest it in TIPS(little safer) like I said since living in CA, the earnings on my HSA will be taxed. But if I invest in a TIPS fund, I don’t have to pay taxes on my earnings and the ER is pretty low.

Luckily, we’re getting a new HSA provider and they don’t charge any fees. I hope they offer similar investing options.

But I will have to figure out what to do with my old account, since I obviously don’t want to keep it there since they charge me $12/quarter. I’ll probably move it over to my new provider and pay a transfer fee or it might be cheaper to transfer it to someone like HSA Bank.

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By: Leigh http://yourpfpro.com/annual-enrollment-time-how-much-can-a-hsa-save-you/#comment-1790 Wed, 14 Nov 2012 04:25:58 +0000 http://yourPFpro.com/?p=1412#comment-1790 My employer also offers a CDHP (consumer-driven health plan) which is a far better deal with how expensive my birth control pills have been. Thankfully, with the start of my next plan year, there will be no deductible or coinsurance on them, so I may try out the HDHP/HSA combo.

The CDHP has a slightly lower deductible than the HDHP, making it a better deal when the premiums and employer contribution are the same and I know I’m going to go over the lower of the two deductibles.

Do you have fees on your HSA? Does your employer’s HSA account offer good investment choices? I would probably actually use my HSA to cover expenses, which is what I do with my FSA now (put enough in it to cover expected expenses and save a bit on taxes).

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By: Gen Y Finance Journey http://yourpfpro.com/annual-enrollment-time-how-much-can-a-hsa-save-you/#comment-1787 Tue, 13 Nov 2012 20:16:19 +0000 http://yourPFpro.com/?p=1412#comment-1787 My deductible is $3500 as well. I’ve had a lot of medical expenses this year, but when I get frustrated about them I just remember that I’m not actually the one paying for them. 🙂

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