4 replies to this topic

[Marnie]

Hello to all. . .I need input from anyone who has knowledge about health savings accounts.  In an effort to cut costs to the district, our administration has brought health savings accounts (as opposed to traditional health insurance) to the negotiations table.  I am very concerned about how this will affect "high cost" individuals.  I need data, personal experience, or any other type of information that might help our negotiations team make a wise decision about coverage for our employees.  From what I can tell so far, healthy folks who have no emergencies or other expensive procedures enjoy the benefits of HSAs. . .however, people who have the misfortune of an expensive diagnosis, or other high cost procedures will end up with a lot of out-of-pocket expenses.

If you have any information that you could give me, please post it here, or pm me.  I don't use the private message part of this forum, so I'll try to be sure that my box is empty.  If you contact me and you don't hear back from me, let me know in this thread, and I'll give you my personal e-mail.

Thanks for your help.  I'm on a very tight time deadline to gather information, so a quick reply is far better than a slow one.  In addition to furlough days, pay cuts, larger class sizes, longer hours, and more work to do, thousands of dollars out of teachers' pockets for healthcare is looming in the very near future.  I need to do what I can to help those who have high medical costs already.

Marnie

[lkbanks]

Marnie ,I have a health Savings account.At this time I have a high deductible 3,500. just for me.I pay out everything until I reach deductible(at price insurance negotiated with Dr. and hospitals).At my company I pay no premium,so what i used to pay for premium I put in health account.I think that is it.Not sure if there is a limit other than most insurance that has a million dollar. Hope you get more info,please post and maybe we wil all understand it better...LindaK

[Marnie]

Thanks, Linda. . .

Do you find that you are paying more out-of-pocket than you did on a traditional plan, or is this the only type of insurance you've used?  Do you feel like it is expensive, or is it a plan that you like?  When I look at my expenses, annually I probably pay about $1500 out-of-pocket.  I'm  not sure if that number is typical of the average person with a significant health issue or not. My concern is that the deductible of an HSA will be around $4000 or more (we'll be getting that information in a few weeks), which will mean a significant increase to what I pay.  I'm trying to get a feel for what others pay, and for how people with significant medical costs feel about their HSA.

Thanks for any more details or thoughts that you can give me.

Marnie

[MJL]

I have had a Health Savings Account for many years. Originally I believe they were set up for self employed people. The contribution is tax free. I use it to pay my deductable which is quite high. It can be used to pay for prescriptions, or any medical visit. This year the allowed deposit for a single peson was $3050, not enough to cover my deductable. Also this year we are not allowed to use it for over the counter medicine, which is a farce because you can use it to pay for contact lens solutions but not needed OTC meds. Go figure!. I do not know how it works now for people who are employed. Make sure you understand the possibility of "use it or lose it" each year. For self employed it can roll over with no penalty and any remaining funds are there for you to use at retirement. The actual Health Savings Account is nothing to fear, I guess it depends on who is funding it, You or your employer. Rules change yearly. Your employer will likely let you know the ins and outs, also your Tax advisor will have information regarding it. Since my contribution to the account is tax free I am pretty sure what I use it for  can not be cosidered an "out of pocket" expense. Seems to me I remember when it started the idea was to have lower monthly premiums with a higher deductable, the contribution to the account then helped to pay the higher deductable. But like I said it can change so hopefully your employer will explain it all very soon.

MJL.

[Tim76]

Marnie,

I've used a Health Care Spending Account (HCSA) for many years. It has always been my understanding and experience that you take a certain $ amount out of your paycheck prior to taxes and it is escrowed by a third party. You then send copies of your medical cost receipts to that company for reimbursement. I am also issued a debit card, attached to this escrowed account. The important thing is the "use it or loose it" aspect of the plan. If you don't use all the escrowed funds by the end of the agreed upon time, you loose the money. Being a little conservative, I have usually exhausted my funds by September or so each year, but it sure beats loosing the money. This plan works great if you know you will have a major health care expense during the year, like children's braces, elective surgery, or high co-payments for prescriptions.

Tim