It's open enrollment season and I'm sorting through my options.
Been a little concerned about jumping to an HSA and High Deductible Health Coverage plan.
Over 55, and I still cover one adult "child" who is under 26.
My deductible goes from $600 Individual / $1200 "family" to $1500 Individual / $2800 family, but it's a aggregate deductible in the HDHC plan vs Embedded which means if a covered person hits the deductible, it goes to full pay per individual if that individual hits their deductible. Neither my daughter nor I hit our deductibles.
My employer will kick in $1000 each year to start things rolling. Meaning I can add up to $7300, if I understand.
What each plan pays seems to be pretty close one to another. However, the deductible is different.
oilBabe has her own coverage through her school district as it makes more sense to keep her coverage there to build wage history for her pension. She's the one with the biggest expenses compared to me and my daughter, so unless something happens to one of us, on the surface, it seems to be a good deal.
OOP max for each is $2000 Ind/ $4000 family with my current plan and $2600 Individual and $4000 Employee + Children assuming in network. Out of network goes to 5k/10 vs 5200/8000 for the each.
Another supposed benefit of the HSA is that it is not only pre Income Tax, just like an FSA but it's also pre FICA taxes, so that's an extra 7.65% kicker. Meaning contributions to the HSA have an additional 7.65% discount when you consider the pre-FICA tax income going into them vs FSA contributions.
And, one can park the money in an investment account once the balance is over $5k. There is an S&P500 index fund option with a less than 1/10th of a percent fee.
Yes, I understand the risks of investing.
I'm looking for feedback from those who have moved to such a plan. Especially those with a similar situation, 55 and older, reasonably good health, etc.
Is there anything I'm missing and or not considering here?
Thanks in advance.
Edited to add: The premiums for the HDHC plan are about 1/2 of what I pay for my PPO plan described, meaning much of the money going to the HSA would come from the premium delta plus what we are contributing to FSA accounts already.
Been a little concerned about jumping to an HSA and High Deductible Health Coverage plan.
Over 55, and I still cover one adult "child" who is under 26.
My deductible goes from $600 Individual / $1200 "family" to $1500 Individual / $2800 family, but it's a aggregate deductible in the HDHC plan vs Embedded which means if a covered person hits the deductible, it goes to full pay per individual if that individual hits their deductible. Neither my daughter nor I hit our deductibles.
My employer will kick in $1000 each year to start things rolling. Meaning I can add up to $7300, if I understand.
What each plan pays seems to be pretty close one to another. However, the deductible is different.
oilBabe has her own coverage through her school district as it makes more sense to keep her coverage there to build wage history for her pension. She's the one with the biggest expenses compared to me and my daughter, so unless something happens to one of us, on the surface, it seems to be a good deal.
OOP max for each is $2000 Ind/ $4000 family with my current plan and $2600 Individual and $4000 Employee + Children assuming in network. Out of network goes to 5k/10 vs 5200/8000 for the each.
Another supposed benefit of the HSA is that it is not only pre Income Tax, just like an FSA but it's also pre FICA taxes, so that's an extra 7.65% kicker. Meaning contributions to the HSA have an additional 7.65% discount when you consider the pre-FICA tax income going into them vs FSA contributions.
And, one can park the money in an investment account once the balance is over $5k. There is an S&P500 index fund option with a less than 1/10th of a percent fee.
Yes, I understand the risks of investing.
I'm looking for feedback from those who have moved to such a plan. Especially those with a similar situation, 55 and older, reasonably good health, etc.
Is there anything I'm missing and or not considering here?
Thanks in advance.
Edited to add: The premiums for the HDHC plan are about 1/2 of what I pay for my PPO plan described, meaning much of the money going to the HSA would come from the premium delta plus what we are contributing to FSA accounts already.
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