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Continue HDHP/HSA or move to wife's plan

Home Insurance Continue HDHP/HSA or move to wife's plan

  • Avatar AZPT 
    Participant
    Status: Other Professional
    Posts: 107
    Joined: 02/02/2019
    Earnest refinancing bonus

    Hi all,

    I have been on my company’s HDHP + HSA for about 3 years now, as my wife’s private practice sponsored plan was too costly to add me onto. Her peds practice is now being bought out by a hospital system and the medical benefits (see: premiums) are decreasing drastically with this move. It would now be much more affordable to add me onto her plan, where she already covers the kids. Trying to decide whether it’s more beneficial to stay on my employer’s  crappy health plan, purely for the $3,500 of HSA space which I am currently using as an investment vehicle, or get better health coverage on her plan and lose the HSA space. My current HSA account has ~$11,000 being invested in a Fidelity index fund.

    We have a 2yo son and a daughter due in September, so I don’t think an HSA is right for my wife and kid(s) at this point in time, so they will be staying on her plan. I have been healthy so HDHP has worked fine for me. I love having the HSA vehicle for tax-advantaged retirement savings. I hate the idea, however, of what could happen with costs of a catastrophic emergency, specifically on the OON side.

    The details of the 2 plans are below, and would like your input as to whether I should stay or go.

    • Stay on my Cigna HDHP:
      • Employer provides $300 yearly stipend for HSA contribution. Remainder is maxed out from paycheck deductions.
      • Monthly premium: $112
      • INN: $4,000 Deductible, 10% coinsurance, $6,250 OOP max
      • OON: $8,000 Deductible, 50% coinsurance, $24,000 OOP max

     

    • Join Wife’s Cigna PPO plan:
      • Monthly premium: $550 (Only $240 if just wife+kids)
      • INN: $1,000 Deductible, 20% coinsurance, $4,000 OOP max
      • OON: $2,000 Deductible, 50% coinsurance, $6,000 OOP max

    In summary:

    • If I stay on my HDHP, we will pay $200 less per month in premiums, and I can contribute to the single HSA max of $3,500 (with a $300 employer stipend).
    • If I move to her plan, we will pay $200 more per month, have no HSA option, but have much better health coverage.

     

    #230168 Reply
    Rogue Dad, M.D. Rogue Dad, M.D. 
    Participant
    Status: Physician
    Posts: 972
    Joined: 03/07/2016

    Assuming actual medical coverage is similar, just got to do the math and run the scenarios for best and worst case with you all one one plan (look at yours AND hers not just hers) as well as separate then you can make a math decision.

    What is cost if all of them join your plan? Your current premium and deductible are actually good for a HDHP plan — I assume it’s employer subsidized (as is mine).

    High on High Deductibles

    I put my entire family onto my HDHP because the math favored it significantly, as my wife’s employer plan was quite expensive and I didn’t like the coverage.

    http://www.RogueDadMD.com

    An alt-brown look at medicine, money, faith, and family

    #230179 Reply
    Liked by AZPT
    Avatar AZPT 
    Participant
    Status: Other Professional
    Posts: 107
    Joined: 02/02/2019

    Assuming actual medical coverage is similar, just got to do the math and run the scenarios for best and worst case with you all one one plan (look at yours AND hers not just hers) as well as separate then you can make a math decision.

    What is cost if all of them join your plan? Your current premium and deductible are actually good for a HDHP plan — I assume it’s employer subsidized (as is mine)

    Click to expand…

    Thanks for the link – I will check that out.

    Yes, my individual portion is heavily employer-subsidized but goes up to almost $1600/mo for family coverage on my HDHP!

    I will run the rest of the numbers, thanks.

    #230183 Reply
    Avatar jhwkr542 
    Participant
    Status: Physician
    Posts: 1288
    Joined: 02/15/2016

    I’d say stick with your own. A hdhp is always a bit of a gamble, so the coverage shouldn’t matter that much. In lieu of better coverage, you invest and try to come out ahead. I think staying on the hdhp is probably still best.

    #230219 Reply
    Liked by AZPT
    ENT Doc ENT Doc 
    Participant
    Status: Physician
    Posts: 3456
    Joined: 01/14/2017

    What do you mean that you’ll have “much better health coverage” with switching to your wife’s plan? Because otherwise paying $200 less a month and having access to an HSA makes this a clear “stay put” decision in my mind.

    #230297 Reply
    Liked by AZPT
    Rogue Dad, M.D. Rogue Dad, M.D. 
    Participant
    Status: Physician
    Posts: 972
    Joined: 03/07/2016

    The premium jumps from 120 to 1600/month to add family? Are you sure that’s accurate? That’s a huge jump — I’ve not heard of an employer subsidized plan of any kind jump that much (admittedly I don’t spend all day reading about others premiums). .

    Usually employers incentivize trying to get families on the HDHP and off other plans they offer because the deductible scares people into spending less on healthcare even if overall cost is lower. This is more of a way to just keep your family off the plan entirely.

    http://www.RogueDadMD.com

    An alt-brown look at medicine, money, faith, and family

    #230304 Reply
    Liked by AZPT
    Avatar Tim 
    Participant
    Status: Accountant
    Posts: 2857
    Joined: 09/18/2018

    My wife’s employer highly subsidizes employee only.
    Spouse coverage is a bump but better than separate.
    Family coverage is jaw dropping.
    Exponential, not linear.

    #230330 Reply
    Liked by AZPT
    Avatar AZPT 
    Participant
    Status: Other Professional
    Posts: 107
    Joined: 02/02/2019

    The premium jumps from 120 to 1600/month to add family? Are you sure that’s accurate? That’s a huge jump — I’ve not heard of an employer subsidized plan of any kind jump that much (admittedly I don’t spend all day reading about others premiums). .

    Usually employers incentivize trying to get families on the HDHP and off other plans they offer because the deductible scares people into spending less on healthcare even if overall cost is lower. This is more of a way to just keep your family off the plan entirely.

    Click to expand…

    Sorry for the delayed response, didn’t see it! And you are correct, I was in error. The family cost was $1,100+ monthly for the HDHP. The $1,600 I was referencing is the family cost at wife’s current position (non-HDHP) that they are moving away from. Still, as mentioned by Tim, the cost for family coverage is definitely not linear compared to employee-only, but the info you provided regarding that makes a lot of sense.

    #237929 Reply

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