• Do you have any victories you'd like to share for the month of May? Help us celebrate others by posting here.

Diabetic husband and spouse with an HSA

aufan

Super Genius
100+ Post Club
Ok...i need a little re-education. I you have the wife covered under an HSA, can't she use dollars in her HSA to cover expenses of an uninsured spouse?

In my case, have a healthy wife who has a diabetic husband. I believe I remember that her HSA money can be used to offset medical expenses for her husband. If so, I will put him on a high deductible guaranteed issue major medical plan and if he is hospitalized with a major illness, the wife can use some of her money to offset his high deductible.

Am I correct in this assumption?
 
wife covered under an HSA, can't she use dollars in her HSA to cover expenses of an uninsured spouse?

Yes.


healthy wife who has a diabetic husband. I believe I remember that her HSA money can be used to offset medical expenses for her husband. If so, I will put him on a high deductible guaranteed issue major medical plan

Who writes such a plan?

There are a few carriers (Aetna being one of them) that will consider a type II diabetic. Haven't seen a guaranteed issue HDHP.
 
On the individual market, Diabetics have three choices:

1. Get a part time job and get on their group plan
2. Go into business with your wife, and get a small group
3. Get a discount card

Oh, and the one mentioned here...

Someone can take out an individual HDHP/HSA and use the funds in the HSA to pay for the diabetic spouse's needs. I would suggest he find a clinical trial for diabetes. They're not hard to find.
 
I would be very careful of offering this product. It looks very much like a plan that was allegedly underwritten first by Pan Am, then later changed to Fairmount.

This guaranteed issue, quasi-group plan was reviewed by the DOI in GA and deemed to be non-compliant. Any agent selling the plan could be fined, lose their license or both. They could also be held liable for any claims denied under the plan.
 
Does this look familiar?

Look closely at the application. The only difference in the app with your plan and the one from AIM is the missing carrier information. That makes this an illegal app.

My guess would be this app, and probably the one you have, are not filed with any state DOI.

If you look at Perfect Health, it appears they are a NY domiciled carrier offering a community rated, GI plan in NY only. Of course, they may not even be a real carrier.

Nothing at NAIC or AM Best about them.

No financial information anywhere that I can find.

It all adds up to something very shaky.

Addendum: Did a bit more research. Seems Perfect was purchased by a NY based HMO (HIP) in 2005. Details here

My guess would be, if you talk to the folks at HIP they have no idea there is a product out there with (and without) their subsidiary's name on it.

My advice would be to run away.
 
Last edited:
Aufan,
I concur with Somarco. I've run into these pseudo group/Guar.Issue/Assoc. plans in my neck of the woods and they will get you and the client into trouble. An agent in my area had a nightmare with one of these. Check with the MS DOI and make sure this is allowed to do business there.
 
Bob_The_Insurance_Guy,
I don't entirely agree with that. It depends on the state. Somarco is correct about Aetna. In CT, we had a carrier that was accepting some diabetics for a few years (Connecticare). Aetna has come in and filled that void lately. Also, in some states, groups of 1 are an option either year round or at certain times of year.
 
Back
Top