HSA's

[Golddoor]

Im a little confused on the HSA's. You have a high deductible plan with an tax free savings account to pay for medical expenses up to the deductible. My question is when you reach that deductible does the plan pay everything at 100%? Including Doc office visits and prescriptions?

How is a HSA better than an HMO or PPO plan?

 

[somarco]

Some, but not all HDHP's cover 100% of your eligible charges above the deductible. All the plans I offer clients do.

You can have an HSA with either an HMO or PPO if you have a qualified HDHP. Most folks would rather have a PPO HSA than the HMO HSA.

 

[midwestbroker]

I have also found that the underwriting at times is more laxed. Since the client is taking most of the risk upfront, they may rate something as standard that would be more with a PPO.

I know BCBS of Kansas City has 3 options, a 80%, 90% and 100% available.

 

[Golddoor]

Ok thanks Guys but whats the difference between a PPO plan that has a $2000.00 deductible and 75% coinsurance and an HSA plan that has the same ded/cosinsurance?

 

[somarco]

The HDHP that is qualified allows you to set up the HSA. The PPO plan that is not HDHP qualified does not.

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

or if you want to download it

http://www.irs.gov/pub/irs-pdf/p969.pdf

 

[Golddoor]

The HDHP that is qualified allows you to set up the HSA. The PPO plan that is not HDHP qualified does not.

Somarco, is an HSA really all that, just to be getting 2-3 percent interest?
When I run quotes with Assurant for both the Core Med 2000 Ded 80/20 PPO and Save Right 2000 Ded 75/25 HSA the Core Med plan is $6.00 cheaper per month and has prescription coverage. Do I really want to mess with a savings account and not have prescription coverage and pay $6.00 more a month for an HSA?

 

[Crabcake Johnny]

You're probably forgetting that the CoreMed plan has double the family liability and 50% coinsurance on name brand drugs. That never goes away even if the client hits their OOP.

So take catastrophic illness/accident and the client is on $4,000 a month of meds. On Coremed they owe the copay plus $2,000. Not very good. On a HSA drugs are free after the OOP is reached and it's half the family liability.

It doesn't even have to be catastrophic - just $200 a month in meds is an extra $100 per month for the client.

Also remember that CoreMed has no benefit for mental/nervous disorders. The HSA does.

 

[somarco]

is an HSA really all that, just to be getting 2-3 percent interest

The 2 - 3% interest tax free isn't a bad rate, now is it? Once you have enough surplus in your "primary" HSA you can diversify in to other funds and potentially earn (or lose) more.

And what about the income deduction for HSA deposits? Compare them to paying your routine expenses after tax and you can realize another 20%+ savings.

Routine expenses like doc visits, Rx, tooth care, vision care, OTC meds . . .

And as John points out, the most beneficial item in the HSA is the cap on OOP. This is an often overlooked item that can save literally thousands in a bad claim year.

 

[Golddoor]

You're probably forgetting that the CoreMed plan has double the family liability and 50% coinsurance on name brand drugs. That never goes away even if the client hits their OOP.

So take catastrophic illness/accident and the client is on $4,000 a month of meds. On Coremed they owe the copay plus $2,000. Not very good. On a HSA drugs are free after the OOP is reached and it's half the family liability.

It doesn't even have to be catastrophic - just $200 a month in meds is an extra $100 per month for the client.

Also remember that CoreMed has no benefit for mental/nervous disorders. The HSA does.

The save right HSA has a $2000.00 limit on prescription drugs though? Thats not good. For instance I am currently taking $2500.000 per month in medications for myself. With the Assurant SR HSA I wouldnt even get a months supply!

 

[somarco]

Forget anything that has Right Start or Save Right in the name unless you want to buy an E&O claim.