Temporary Medical Insurance

[steppinthrax]

I'm currently employed and I'm reviewing my options for the next open Enrollment Period (November) for medical. I'm in my mid 30s and for the past 10 years or so no one in my family (wife, myself, 2 kids) have had any major medical issues (other than general checkups and sick visits).

However, I pay thru my employer around 220.00 per pay period for a HDHP (high deductible health plan) with an HSA. This health plans really only covers doctor visits. The deductible is 8K. I make over 130K a year and my combined family is around 150K.

To be frank it's complete bullshit. To be even more frank the costs of health insurance plans have gotten out of control since ACA.

Anyway, Since Trump has removed the individual mandate, I was searching thru private health insurance online and seeing temp medical insurance for 160 or so a month. It includes 50 copay for doctors and is missing many things I don't need or I can get elsewhere for free (flu shots, maternity benefits, birth control).

The problem is that it's only good for 3 months, however it says I can re-apply after 3 months. Based on some new rule thru trump, I'm reading that Trump may be dropping that 3 month req and pushing it up to 36 months for short term health. I read the only issue with re-applying every 3 months is that any costs you pay for med will be wiped out and that short term can deny you for a pre-existing condition that spans over 3 months by the next re-application.

So I guess my question is could I simply just keep re-applying every 3 mos again and again and again.

In addition what are some tricks on getting cheaper medical. I understand there are now "medical packages" that are cheaper, but it's only about 100 dollars less than what I'm currently paying thru my employer.

 

[Yagents]

You have a great group plan that is a low price and is pre tax thru payroll. Fund your HSA to max and get more tax deductions. Net tax deductions at your income level will be close to a substandard STM plan premium. Stm is available for up to 12 months in most states, except some liberal ones that limited to 3 months STILL. If so, I wouldn't sell it to you. Risk of being uninsured for 9 months of 2019 outweighs all else.

This advice was free

 

[steppinthrax]

You have a great group plan that is a low price and is pre tax thru payroll. Fund your HSA to max and get more tax deductions. Net tax deductions at your income level will be close to a substandard STM plan premium. Stm is available for up to 12 months in most states, except some liberal ones that limited to 3 months STILL. If so, I wouldn't sell it to you. Risk of being uninsured for 9 months of 2019 outweighs all else.

This advice was free

How do the tax benefits outweigh the extra costs of 440 a month???? Run numbers by me because I can't see it. It's shit insurance that can't really be used for anything unless I put down another 8K deductible. It's a slap in the face really. Before ObamaCare I had an HMO for my entire family that I only paid 70 dollars or so per pay period for medical for my entire family.

The HSA is only for health related expenses. The most I have in Health related expenses is about a hundred or so for glasses???

Unless there's some way I can dump into my HSA and then "legally" pull the money out to avoid tax.

The short term I was looking at is golden rule. But my strategy is this, if I get so sick that I need something perm, I would wait for this to expire and get back on my employer based on "lost of coverage".

 

[Yagents]

You can't jump back into your group plan mid year.
Your deductible and out of pocket is high on every plan, even STM, get over it.
HSA is the most power financial planning vehicle ever created, it's not necessarily about now. Google it, and educate yourself.

AT 20% tax bracket, $440 pre tax is really $352. Fund HSA $6850 and save another $1370/year in taxes. Take $114 month savings, apply to premium, and now down to $238/mo to insure your family against the biggest risk to your wealth. I dream of having what you have. Save your HSA for when your arse is in Long term care, or your kids need braces.

This advice expires in 3......2.......1..........

 

[steppinthrax]

You can't jump back into your group plan mid year.
Your deductible and out of pocket is high on every plan, even STM, get over it.
HSA is the most power financial planning vehicle ever created, it's not necessarily about now. Google it, and educate yourself.

AT 20% tax bracket, $440 pre tax is really $352. Fund HSA $6850 and save another $1370/year in taxes. Take $114 month savings, apply to premium, and now down to $238/mo to insure your family against the biggest risk to your wealth. I dream of having what you have. Save your HSA for when your arse is in Long term care, or your kids need braces.

This advice expires in 3......2.......1..........

Okay, I would need a way to run those numbers to see the actual value. But if I'm dumping money into an HSA how will it be used. I just bought invisalign for my daughter (thru mexico). I only paid around 1500 or so in total. My US dentist wanted 5K. So I don't see the purpose of the HSA other than to dump money into it and never able to take it out.

Are you saying use the HSA to pay the premium? Isn't that the same thing as just paying the premium out from you paycheck????

 

[steppinthrax]

You can't jump back into your group plan mid year.
Your deductible and out of pocket is high on every plan, even STM, get over it.
HSA is the most power financial planning vehicle ever created, it's not necessarily about now. Google it, and educate yourself.

AT 20% tax bracket, $440 pre tax is really $352. Fund HSA $6850 and save another $1370/year in taxes. Take $114 month savings, apply to premium, and now down to $238/mo to insure your family against the biggest risk to your wealth. I dream of having what you have. Save your HSA for when your arse is in Long term care, or your kids need braces.

This advice expires in 3......2.......1..........

BTW I appreciate your advice.

 

[Yagents]

If you went to Mexico for invasalign, you'll never buy anything but the cheapest price.

I own STM for $450/mo, but can own it for a full year in my state, and it's a damn good choice vs my $7900 deductible $1540/mo Obamacrap option. Big difference, pennies vs hundred dollar bills.

I'm done. Good luck. This is where I typically move on to the next client/prospect........NEXT!

Maybe somebody else will step in........

 

[Yagents]

You're welcome, couldn't tell if you were listening.

 

[steppinthrax]

If you went to Mexico for invasalign, you'll never buy anything but the cheapest price.

I own STM for $450/mo, but can own it for a full year in my state, and it's a damn good choice vs my $7900 deductible $1540/mo Obamacrap option. Big difference, pennies vs hundred dollar bills.

I'm done. Good luck. This is where I typically move on to the next client/prospect........NEXT!

Maybe somebody else will step in........

I always try to find a way around everything. When the dentist wanted 5K for my daughter's braces I gave him the middle finger and started looking thru my "network" for cheaper options.

I know most things in this country don't ever cost what they actually "should" cost. This is a huge statement for medical insurance and pretty much everything else in the US.

Anyway, I guess my biggest remaining question is how can the HSA be the most powerful tool. Unless you are dumping money into the HSA and finding ways to buy things because you have to (like using coupons for products you never use). HSA as my understanding can only be used for medical based expenses. Also what's the max limit into the HSA. I'm reading it can be used as a retirement account.

How do you pulling from the HSA for non-medical use?

I'm looking at a golden rule short term med for roughly 200 a month for my entire family. Now I can tell my HR that I had a loss of coverage and use my employer as a "fall back" if I absolutely need a perm med insurance.

 

[Yagents]

I always try to find a way around everything. When the dentist wanted 5K for my daughter's braces I gave him the middle finger and started looking thru my "network" for cheaper options.

I know most things in this country don't ever cost what they actually "should" cost. This is a huge statement for medical insurance and pretty much everything else in the US.

Anyway, I guess my biggest remaining question is how can the HSA be the most powerful tool. Unless you are dumping money into the HSA and finding ways to buy things because you have to (like using coupons for products you never use). HSA as my understanding can only be used for medical based expenses. Also what's the max limit into the HSA. I'm reading it can be used as a retirement account.

How do you pulling from the HSA for non-medical use?

I'm looking at a golden rule short term med for roughly 200 a month for my entire family. Now I can tell my HR that I had a loss of coverage and use my employer as a "fall back" if I absolutely need a perm med insurance.

Yes, powerful chit. Learn it, love it, leverage it.
Only vehicle with triple tax advantages. (deduct, defer, distribute all tax free)
Yes, only medical dental vision expenses, or long term care. (hint hint)
Or, it can be treated like an IRA at age 65. Taxable like an IRA, no penalty.
Max is $6850 or so for family, on top of IRA/401k contributions.
Yes, you will have over a $250k of medical expenses before you die.
You'll have more control of your taxable income in retirement.
If not, you buy a yacht when you're 80.

Goldenrule has 20 different flavors of STM buddy.
You have no idea what you're buying.
For example, what is the difference between the Value plan and Medical Plus plans at Goldenrule? Is coinsurance maximum include the deductible, or on top of the deductible?

Come back with those answers, and what you want you are leaning towards.