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Anyone know anything about HSA's?

Started by Dr. Starcs, January 23, 2014, 07:28:57 am

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Dr. Starcs

I need some questions answered. Never had one before until now and don't fully understand how they work after I've met my deductible?  As far as how the insurance begins to kick in and billing, etc? 

Thanks in advance

TheJoeyBucketz

Not an insurance expert, so fact check me...

I believe HSA's are not really insurance policies. HSA's are funding vehicles for qualified medical expenses. The govt allows you to fund the HSA with pre-tax money, and as long as the funds are used for qualified medical expenses the money will never be taxed. You can withdraw the funds for other use, but you will be taxed on what you withdraw (may be subject to a penalty, also; I really don't know).

If you have a HSA you also have an insurance plan with a high deductible. The HSA is available to help you offset some of the out of pocket costs with pretax cash.

So the way it would work is like this- you have an insurance policy with a 10k deductible. Your monthly premium is pretty low due to the high deductible. You pay the premium and also make tax free deposits into your HSA. When you use healthcare you pay for it out of your HSA until you've met your deductible, after which insurance jumps in with whatever coinsurance you have. If you don't spend all of the money you deposited into your HSA it rolls over into the next year.

So the HSA is not an insurance policy, it is just a tax free funding vehicle to offset the cost of your high deductible plan. Let me know if I wasn't clear on any of that.

* I am 99% sure I am correct with that answer. 
Dominic Fletcher following his homerun against Texas Tech in Omaha, "I thought they said this park was big?!"

 

HawgWild


TheJoeyBucketz

The audience here is a lot nicer than MMQB...
Dominic Fletcher following his homerun against Texas Tech in Omaha, "I thought they said this park was big?!"

HawgWild

Don't forget Jump Ball. It's bad there and only getting worse.

Dr. Starcs

golf2day, that makes so much sense. Thanks so much.

One other thing though, once I've met the deductible, how do I handle medical expenses?  Do I just not use my card anymore an file it directly with my insurance?  What is the best method here, if you have an opinion.

Thanks again, and anybody else feel free to chime in.

TheJoeyBucketz

My understanding of the way that works is that you provide your insurance card on each and every visit. The doc will provide your insurance co with the bills. The insurance co will then advise the doc what, if any, they are covering. The doc then sends you a bill for your responsibility.

Obviously, until you meet your deductible the amount you're responsible for will be 100%. After meeting the deductible the insurance co will be doing calculations each time your doc sends them a bill to determine what they will cover and what you are responsible for.

So, use your card each and every time. The doc will let you know what you owe them. You can then pay the doc with the funds from your HSA. It will probably be a good idea to keep a running tab throughout the calendar year on how much $$ you have poneyed up for healthcare. I have never heard of an insurance company failing to notify the insured that they've met their deductible, but that's not to say it wouldn't happen. I personally would feel better knowing exactly how much more $$ I am on the hook for before my deductible kicks in. Only using funds from your HSA for medical expenses should make keeping track of outflows easier.

Again, I'm not an insurance expert. I am life/health licensed, but the vast majority of my work is with investments. With insurance I know just enough to be dangerous...
Dominic Fletcher following his homerun against Texas Tech in Omaha, "I thought they said this park was big?!"

HognotinMemphis

Quote from: Dr. Starcs on January 23, 2014, 07:28:57 am
I need some questions answered. Never had one before until now and don't fully understand how they work after I've met my deductible?  As far as how the insurance begins to kick in and billing, etc? 

Thanks in advance
Hope you never get HSA. That can kill you.
I don't want you to agree with me because you're weak. I want you to agree with me because you know I'm right.
______________________
President Obama promised to begin to slow the rise of the oceans and to heal the planet. My promise is to help you and your family." - Mitt Romney

Dr. Starcs

The only thing worse than HSA would be HiM

HognotinMemphis

Quote from: Dr. Starcs on January 23, 2014, 08:09:35 pm
The only thing worse than HSA would be HiM
The best fortune you could ever hope to have would be to contract HiM.
I don't want you to agree with me because you're weak. I want you to agree with me because you know I'm right.
______________________
President Obama promised to begin to slow the rise of the oceans and to heal the planet. My promise is to help you and your family." - Mitt Romney

1873Hawg

I never use my HSA card until I am specifically billed. Most health care providers will try to bill your insurance first then send you a bill for what they cannot collect from them. That is when I pony up using my HSA (oh and when I am buying prescription meds)...
"Expecting the world to treat you fairly because you are a good person is a little like expecting a bull not to attack you because you are a vegetarian." - Dennis Wholey

LL COOL HOG

HSA are great for singles. The maximum out of pocket expense for 2014 will be $6,350 excluding premiums.

Tripod1

The above posts did an excellent job of describing how the HSA works.  Good job guys +1

 

SardisHog

There is no better way to get your medical bills paid with pre-tax dollars. I suspect the government will take this benifit away sooner or later.
"You're only given a little spark of madness. You mustn't lose it."<br />- Robin Williams