Posted: 2/14/2016 10:11:42 PM EDT
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Anyone get conned into switching to a "High Deducible Healthcare Plan"
(With an HSA) ?? Finding out (firsthand) how ObamaCare has SCREWED UP what used to be pretty damn good healthcare. Kaiser, specifically. Loved it for 30 years, now? Maybe it's a 'clerical error', but getting bills after I had already paid at time of office visit and prescriptions. Getting billed as "Guarantor" and also as "Medical Record Number". I do not get it! Rant over, time for a drink. |
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It sounds like you have a misunderstanding of what a High Deductible Health Plan (HDHP) is.
A HDHP means there is no more "co-pay", YOU pay the bill, after the insurance reviews and makes sure it's the agreed contract price (EOB). You do that until you hit your deductible amount. Once you hit that amount (it is going to be at least a couple thousand dollars, more if you are in a family plan) then the insurance starts paying. My plan pays 100% after deductible is met, many only pay 80%. In the meantime you should be putting enough from every paycheck in to your Health Savings Account (HSA) to hit the maximum contribution by year end. This money is coming out of your paycheck before taxes (reducing your tax bill / increasing your refund). Use this money for medical costs including paying your deductible. Used properly the HDHP works best for people who "never go to the doctor" and those that will spend quite a bit of time at the Dr. Those in between aren't usually good candidates. I find them great. I rarely go to the Dr. This year it looks like I will be hitting my deductible though because of a back injury early on. The plan exposes you to what the true cost of your healthcare is. When you paid a $55 co-pay before, that wasn't the end of it, your insurance company was paying the rest of the bill. When you picked up generic drugs for a flat rate your insurance was picking up the tab for the rest. Now you are seeing what the true cost is. |
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Quoted:
In the meantime you should be putting enough from every paycheck in to your Health Savings Account (HSA) to hit the maximum contribution by year end. This money is coming out of your paycheck before taxes (reducing your tax bill / increasing your refund). Use this money for medical costs including paying your deductible. This. Also remember that unlike a 401k, contributions to your HSA also decrease your income for calculating SS and Medicare taxes. |
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I think high deducible plans with HSAs are the only way our healthcare system will work correctly again, but you have to start the HSA at a young age so the account has time to build up money. Health insurance is the only insurance we buy intending to use it. Every other insurance we buy to insure against a risk we hope never happens. If a young person started an HSA at 18 and put 2500 a year in with a 2500 employer match they'd have a lot of cash to spend by their late 20s when most people start a family and start going to the doctor more. Plus it encourages people to shop for a better price. That alone would cause prices to drop. |
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Quoted:
It sounds like you have a misunderstanding of what a High Deductible Health Plan (HDHP) is. A HDHP means there is no more "co-pay", YOU pay the bill, after the insurance reviews and makes sure it's the agreed contract price (EOB). You do that until you hit your deductible amount. Once you hit that amount (it is going to be at least a couple thousand dollars, more if you are in a family plan) then the insurance starts paying. My plan pays 100% after deductible is met, many only pay 80%. In the meantime you should be putting enough from every paycheck in to your Health Savings Account (HSA) to hit the maximum contribution by year end. This money is coming out of your paycheck before taxes (reducing your tax bill / increasing your refund). Use this money for medical costs including paying your deductible. Used properly the HDHP works best for people who "never go to the doctor" and those that will spend quite a bit of time at the Dr. Those in between aren't usually good candidates. I find them great. I rarely go to the Dr. This year it looks like I will be hitting my deductible though because of a back injury early on. The plan exposes you to what the true cost of your healthcare is. When you paid a $55 co-pay before, that wasn't the end of it, your insurance company was paying the rest of the bill. When you picked up generic drugs for a flat rate your insurance was picking up the tab for the rest. Now you are seeing what the true cost is. Well, I thought going from $20 (old plan) to $55 was enough. Then when I paid $55 and then got a bill on top of that, that was a big surprise. I guess I'm lucky: My individual deductible is only $700. After that, I only pay 10% FWIW, my yearly insurance cost went down by $750, AND my company will deposit $1250 per year into my HSA. On top of that, I'm putting $2500/year into the HSA, per year Just going to have learn how to play this new game. Thanks for the great info. Looks like you already have the experience using HSA + HDHP that I will get over the next few years.... |
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Lonestoner and wvar15.....
One thing that you need to keep in mind, There is a limit as to how much one can put into and HSA per year. For example, for the individual the max is 3300 per year, regardless of who puts the $$ in the account. Anything over that and you will be taxed plus pay a penalty. IF your HR/bean counters are any good at your company, they should catch the overage before you put the extra $$ in the account..... 
---------------------------------------------------------------- Member, Friday the 13th "Nothing tastes as good as skinny feels" K. Moss You can NEVER be too rich or too thin... Life is not a journey, but a series of unplanned detours.... Perfection: is not a goal---it's a demanded expectation. |
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Quoted: Lonestoner and wvar15..... One thing that you need to keep in mind, There is a limit as to how much one can put into and HSA per year. For example, for the individual the max is 3300 per year, regardless of who puts the $$ in the account. Anything over that and you will be taxed plus pay a penalty. IF your HR/bean counters are any good at your company, they should catch the overage before you put the extra $$ in the account..... ---------------------------------------------------------------- Member, Friday the 13th "Nothing tastes as good as skinny feels" K. Moss You can NEVER be too rich or too thin... Life is not a journey, but a series of unplanned detours.... Perfection: is not a goal---it's a demanded expectation. That's one of a few problems with the current HSAs. In my opinion it's the only option that will fix the healthcare system because it uses the market to set prices. The system we have in place now will never work long term because the consumer has no input and often has no clue how much their medical bill really costs. The government has at best only half halfheartedly supported HSAs. If they would up the limit to say 10,000 per person. People could save up a lot of money while they are young and healthy and there would be incentives to not spend it frivolously and to shop for better prices. |