Obamacare cost...

[BlueK]

Although eligible for medicare, I use company insurance. I have an adversion to dealing with the governemnt. I will admit friends I have on medicare like it.

What I don't understand is why when I hit medicare age I can no longer do any kind of medical savings plan. Even if I don't use medicare.

Anyone have an idea on why that would be?

To please the AARP lobby

[smokymountainrain]

That was my thought. Seems like a high deductible is generally the best long-term solution as you have higher out-of-pocket expenses but your monthly premium is lower. But to be able to take advantage of this, you need to have a savings reserve to cover the short-term spikes in expenses. Those with a high education/income would be more likely to be in this boat.

Yup.

[beefytee]

My high deductible plan works great with my pre-existing condition and super expensive prescription.

With my HSA the first $3750 comes out of my pocket. After that, I think 80-90% is covered up to a certain amount. 100% after that.

The trick is there is also a support program from the prescription company where they will pay $12000 of my out of pocket. So I buy my first 2 months worth of medicine and my HSA out of pocket is pretty much completely covered my the support programs.

The expensive medication means I actually come out ahead. It also helps that the company I work for contributes $2500 to my HSA each year.

[Paperback Writer]

My high deductible plan works great with my pre-existing condition and super expensive prescription.

With my HSA the first $3750 comes out of my pocket. After that, I think 80-90% is covered up to a certain amount. 100% after that.

The trick is there is also a support program from the prescription company where they will pay $12000 of my out of pocket. So I buy my first 2 months worth of medicine and my HSA out of pocket is pretty much completely covered my the support programs.

The expensive medication means I actually come out ahead. It also helps that the company I work for contributes $2500 to my HSA each year.

Good to read about programs like that. When my employer (a Fortune 50 company) went to high deductible plans and discontinued traditional plans, it meant a cost transfer to meet the high deductible for my kids' insulin prescriptions. Before, I think we had a $500 deductible and that changed to $3,000 under the high deductible plan. Also, negotiated prescription price savings do not apply until the deductible is met which means we pay 4X the cost until we hit the deductible. Once the deductible is met, we get the lower prescription price and 80% co-pay until we reach the annual max. There is no support program from the pharmacy company and no employer contribution to my HSA. It was basically a cost transfer of $2,500 per year with the high deductible plan for a preexisting condition. I take the max HSA withholding each year ($6,750) and always exceed it.

On a related note, I was glad that my insurance used the 26-year old age requirement the ACA adopted. Before that, a dependent lost coverage at 18 unless he/she was a student. Which would have meant loss of health coverage for full-time missionary service or the church providing insurance. Now my diabetic kids have health coverage until 26 which should get them through their undergraduate studies. On the flip side, it also impacts my retirement planning since I'll probably be working until they age out of my insurance benefits after looking at insurance rates offered by universities and ACA.

[beefytee]

Good to read about programs like that. When my employer (a Fortune 50 company) went to high deductible plans and discontinued traditional plans, it meant a cost transfer to meet the high deductible for my kids' insulin prescriptions. Before, I think we had a $500 deductible and that changed to $3,000 under the high deductible plan. Also, negotiated prescription price savings do not apply until the deductible is met which means we pay 4X the cost until we hit the deductible. Once the deductible is met, we get the lower prescription price and 80% co-pay until we reach the annual max. There is no support program from the pharmacy company and no employer contribution to my HSA. It was basically a cost transfer of $2,500 per year with the high deductible plan for a preexisting condition. I take the max HSA withholding each year ($6,750) and always exceed it.

On a related note, I was glad that my insurance used the 26-year old age requirement the ACA adopted. Before that, a dependent lost coverage at 18 unless he/she was a student. Which would have meant loss of health coverage for full-time missionary service or the church providing insurance. Now my diabetic kids have health coverage until 26 which should get them through their undergraduate studies. On the flip side, it also impacts my retirement planning since I'll probably be working until they age out of my insurance benefits after looking at insurance rates offered by universities and ACA.

I also max out the HSA contributions each year and luckily it is building up. I realize I've lived a charmed life and my luck could run out at any time. At some point I'm sure I will have to pay the crazy amounts everyone else does, especially with my chronic condition and expensive medicine.

One thing that drives me nuts about the HSA program is that there is a contribution limit that applies to households. Both my wife and I have accounts so we have to coordinate to make sure we don't exceed the limit. I didn't know her employer contribution rate changed with the start of the new school year, so I always calculated wrong and have exceeded the limit the last 2 years. I re-calculated everything this year in November to make sure our contributions stay under. Here's hoping.

[byu71]

I also max out the HSA contributions each year and luckily it is building up.

Not sure I know what you mean by it is building up. I thought it was a yearly use it or lose it.

[falafel]

Not sure I know what you mean by it is building up. I thought it was a yearly use it or lose it.

I think those are FSA contributions.

[beefytee]

Not sure I know what you mean by it is building up. I thought it was a yearly use it or lose it.

Nope. You are thinking of Flexible Spending Accounts (Cafeteria plans) and I believe they have even changed those so that you can carry over some of the funds.

HSA's are more like 401k's or IRA accounts.

[BigFatMeanie]

Not sure I know what you mean by it is building up. I thought it was a yearly use it or lose it.

A Health Savings Account (HSA) is different from a Flexible Spending Account (FSA). FSA is use it or lose it. HSAs you can contribute up to $6,750 a year pre-tax. You can also invest the money if you don't use it. When you use money for health-related expenses it's also tax-free. No tax going in and no tax going out (if used for medical expenses) is about as good as it gets.

[byu71]

A Health Savings Account (HSA) is different from a Flexible Spending Account (FSA). FSA is use it or lose it. HSAs you can contribute up to $6,750 a year pre-tax. You can also invest the money if you don't use it. When you use money for health-related expenses it's also tax-free. No tax going in and no tax going out (if used for medical expenses) is about as good as it gets.

I googled it and you guys are right. I need to check and see if one qualifies for Medicare is the HSA not available. I know the FSA isn't.

[BigFatMeanie]

I googled it and you guys are right. I need to check and see if one qualifies for Medicare is the HSA not available. I know the FSA isn't.

The HSA is available if you qualify for medicare as long as you haven't filed an application for either Social Security retirement benefits or Medicare.

Behold my Google-fu:

"As long as your employer has 20 or more employees, you have the right to postpone applying for Social Security and Medicare — and therefore can continue to contribute to your HSA — until you stop working. There is no penalty for this delay, and when your employment ends you’re entitled to a special enrollment period to sign up for Medicare. But if you have applied for, or are receiving, Social Security benefits—which automatically entitles you to Part A—you cannot continue to contribute to your HSA."

http://www.aarp.org/health/medicare-...estion_53.html

[byu71]

The HSA is available if you qualify for medicare as long as you haven't filed an application for either Social Security retirement benefits or Medicare.

Behold my Google-fu:

"As long as your employer has 20 or more employees, you have the right to postpone applying for Social Security and Medicare — and therefore can continue to contribute to your HSA — until you stop working. There is no penalty for this delay, and when your employment ends you’re entitled to a special enrollment period to sign up for Medicare. But if you have applied for, or are receiving, Social Security benefits—which automatically entitles you to Part A—you cannot continue to contribute to your HSA."

http://www.aarp.org/health/medicare-...estion_53.html

Thanks for the information.

[Eddie]

I was OK with the high deductible plan for the first few years we had it. My wife, kids, and I are all relatively healthy. We didn't ever hit the deductible, and I always put enough in my HSA to cover it.

The last 2 years it has killed us. We've had way too many medical issues and surgeries, and not enough income.

[Uncle Ted]

The last 2 years it has killed us. We've had way too many medical issues and surgeries, and not enough income.

Good thing Obama made healthcare more affordable.

[imanihonjin]

Good thing Obama made healthcare more affordable.

He said his plan would save families $2,500/year. What are you doing with extra $2,500?