What do you sell?

I tell my clients that in the long run you cant lose with HDHP's - but that is hard for them to believe after they get a 27% rate increase (BCBS of SC in 11/07) but I am still a believer. 96% of my clients are on qualified plans.
1. BCBS (best network and maternity)
2. Golden Rule
3. Humana (easy underwriting and low hdhp rates) - my main gripe with Humana is that the provider search function on their web site is terrible. Sometimes you have to look them up by name, sometimes a provider isnt in there by name but the practice is, but never search by specialty!
4. Carolina Care Plan (Medical Mutual of Ohio)
5. Assurant

What companies are you writing the accident and critical illness with? Does anyone know of any institutions that have stand out HSA's?

Surely many of you have thought of this but one of my clients has convinced me to not use the money in my HSA. Of course, only if you have a decent brokerage option. Just max it out, pay cash and save my receipts. As it stands right now there is no limit on how long you can wait to reimburse yourself, so when that changes or i need the money I'll just write myself a check. This way it is growing tax free and I'm not blowing the money elsewhere. Any of you been doing this.

You lost me about not using the money in your HSA. When you use the money for qualified expenses it's tax free - not tax deferred. Then you simply replace the money.

I see no benefit with paying for qualified expenses out of your pocket and letting the money grow tax deferred. They can get the same tax deferred benefits with a SEP or Keogh so it's not like biz owners don't have places to grow tax deferred investments.
 
That would be only if they are already maxing out their other accounts. It's more of a talking point than anything else. Because it grows tax deferred. The idea being you will have more when you retire because of the tax advantages. It's definitely not for everybody.
 
Lynn -

Sent you a PM. Ball in your court now.

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I see no advantage to paying current med expenses after tax when you have a tax favored HSA to use.

A $1000 claim paid with after tax dollars requires you to earn $1333, pay $333 in taxes to have $1000 left over to pay the claim.

Same claim paid from the HSA costs you $1000.

If you have not hit your cap for the year, pay the claim from the HSA, replenish the amount withdrawn & save $333 in taxes.

Someone please explain why I should use after tax dollars instead of HSA dollars?
 
Somarco,

I think you have been around this industry for a little while. What are you thoughts on a CI plan and accident plan sold in conjuction with a HDHP?

Would love to know.

Thanks
 
That would be only if they are already maxing out their other accounts. It's more of a talking point than anything else. Because it grows tax deferred. The idea being you will have more when you retire because of the tax advantages. It's definitely not for everybody.

It's just poor advice not to use your HSA account for eligible expenses. And you can put $15,000K in a SEP and $25,000 in a Keogh - doubtful they'll max out those tax-deferred vehicles.

If you're paying expenses out of pocket and you have a HSA you have a complete lack of financial understanding.

The BIGGEST value a HSA offers is using tax FREE money on eligible expenses. I really hope you're not telling your clients not to use their HSA money. Horrible advice.
 
There are people that max out those vehicles, most definitely. Not a lot but some and if you're talking to someone that is somewhat savvy it's another concept.

I believe your statment about a lack of financial understanding is not correct.

We're not saying that we're recommending they do not use that money for medical expenses. The IRS code does not give a time frame on when you spend the money. Therefore, if you have an expense in 2006 and it's now 2021 -- if you can produce the receipt you can use that money in 2021 for that expense that was incurred in 2006. In the meantime, it's grown tax deferred. ($1,000 over 15 years 6% has grown to almost $2,500.) Again, it is only for people that have the cash flow. They are still using the money for medical expenses just in a different year. Like you say the biggest advantage to an HSA is using TAX FREE money on eligible expenses. Doesn't matter when you use it!!!

It's just poor advice not to use your HSA account for eligible expenses. And you can put $15,000K in a SEP and $25,000 in a Keogh - doubtful they'll max out those tax-deferred vehicles.

If you're paying expenses out of pocket and you have a HSA you have a complete lack of financial understanding.

The BIGGEST value a HSA offers is using tax FREE money on eligible expenses. I really hope you're not telling your clients not to use their HSA money. Horrible advice.
 
That was an example. There are many choices when investing once you get above a certain amount in the accounts. The return is not the point. It's another way to take advantage of tax deferred growth.
 
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