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Health Savings Account Information

Posted in Uncategorized | August 27th, 2011

health savings account information
I need information QUICKLY about Health Savings Accounts and High Deductible HealthPlans!?

With an effective date of November 1, my employer sprung on us this week that we are changing from a traditional insurance plan with low copays, etc. to a High Deductible Health Plan with an HSA. I have tons of questions and my employer and his insurance agent are pretty much useless. I need to turn in my forms ASAP (like tomorrow) and haven’t found much online. It is a small company, like 25 people. We are going to have a $ 4,000 deductible and he is going to put in $ 3,000 of that over the course of the year. The maximum out of pocket is also $ 4,000 – but it is also up front. (I guess). Where can I get good information quickly? Should I accelerate expenses to the current plan or defer them to the new plan? Thanks.

In my opinion the HSA qualified plans are the better plan for most people. That $3000 that your employer puts into the account is considered your money. It rolls over and adds up each year and you can take it with you when you leave. You pay your doctor visits and prescriptions from the account and the amount you pay goes toward the deductible.

For example, you visit the doctor. The doctor files with the insurance company. The insurance company sends you a summary of benefits showing the total amount billed and the amount approved. In my area the average cost billed for a doctor visit is around $150; the amount approved is $70 to $90. You will then receive a bill from the doctor for the $70 to $90 approved and you pay that out of the HSA account. The amount you pay then goes toward the deductible.

If something catastrophic happens the most you will be out of pocket the first year is $1000 ($4000 deductible minus the $3000 your employer contributes), which is probably much less than the co-pays and co-insurance you would have had on the traditional plan for the same catastrophic occurrence.

Here is some information on HSA plans:

http://www.opm.gov/hsa/faq.asp#4

http://www.irs.gov/publications/p969/index.html