Obamacare cost...

[Uncle Ted]

I just contacted my account manager and my contribution limit goes up from $6250 this year to $6400 next year. No cap on how much I can roll over each year.

I am under the same impression that the amount I can contribute to my HSA is going up next year as well.

The thing that pissed me off about Obamacare and HSAs was the elimination of being able to use it to buy over-the-counter drugs. I used to be able to buy vitamins and other preventive healthcare items using my HSA. Now I have to get a prescription and pay 2-3x the price for the same vitamins or use non-HSA money. The person that came up with this great idea is an experiment in artificial stupidity.

[FMCoug]

I can say that I never maxed out the $5,000, even with orthodontia. The most we did was either $2,500 or $2,750 since we were able to split the payment over two years.

In reality, the tax difference isn't that significant. Assuming a 15% tax rate, someone who maxed out the $5,000 before was saving $750. At a $2,500 maximum, they will only see $350 in tax savings - a difference of $350.

I have to wonder how many people were even using it, let alone maxing it out. It isn't very widely offered, and even in the places where it is, it doesn't seem like there is a high percentage of people who take advantage of it.

I don't think I had an HSA option at my last full-time job. Just FSA. At least not with the all the bells and whistles plan we had, which was pretty darn awesome.

[doctorcoug]

Most people should choose the hsa. Anybody doing an fsa without a really really good reason is just stupid, if the hsa is available.

This is another retirement vehicle for me.

via a galaxy s3 far far away

[Clark Addison]

My Fortune 50 company had big changes in our health plans for the coming year. Rather that the multiple choices I had in the past, including a PPO-like plan, I only had two choices. Both were high-deductable type plans, with different deductables. Only the higher deductable plan had an HSA available (the other one had an FSA), which was one of the reasons I chose it.

[Moliere]

Don't HSAs allow you to roll the money over from one year to the next? I have a FSA (only option at my old job...I'll see about the new job soon) and had to use the money up by year end. This kept my contribution amount low because in a typical year we don't rack up more than $1,500 in health care related expenses. Last year I put in $800 and we all went out and got some extra pairs of glasses to use up the money.

[Surfah]

My Fortune 50 company had big changes in our health plans for the coming year. Rather that the multiple choices I had in the past, including a PPO-like plan, I only had two choices. Both were high-deductable type plans, with different deductables. Only the higher deductable plan had an HSA available (the other one had an FSA), which was one of the reasons I chose it.

My company made a similar change. They consolidated all of the plans into one single offering. And it is a high deductible ($2500) plan with what they call an HRA (Health Reimbursement Account). The company gives each family $500 towards their HRA and then there are incentives to earn more funds for the HRA like consulting with a health coach, healthy pregnancy plan, etc with the potential to lower the deductible to about $1000.

I recently interviewed with a company who paid 100% medical, 100% coverage. I didn't think such benefits existed anymore. But they said that for 2013 it is changing because of Obamacare (The HR rep specifically said Obamacare). They'll still pay 100% medical, but there will be a $500 deductible before 100% coverage kicks in.

[Uncle Ted]

I recently interviewed with a company who paid 100% medical, 100% coverage. I didn't think such benefits existed anymore. But they said that for 2013 it is changing because of Obamacare (The HR rep specifically said Obamacare). They'll still pay 100% medical, but there will be a $500 deductible before 100% coverage kicks in.

'Cadillac' health care plans still exist especially with companies that are heavily union based. Even these companies will have to make drastic changes to their health insurance by 2018 because of the 40% Obamacare tax on 'cadillac' plans that is kicking in. Remember, if these companies change their healthcare plans it will be due to the greedy bastards running the companies and not because of Obamacare. Recall that President Obama promised us that nothing will change because of Obamacare:

[YOUTUBE]DXqKp5B0ZLE[/YOUTUBE]

Clearly, the companies that grant us money for our daily bread are the 'bad guys' here.

[ERCougar]

I fully support the tax on Cadillac health plans--these have been some of the prime drivers in health care costs, and they need to go.

As for an HSA/high deductible plan--they're FAR cheaper. I pay ~$230 a month for my family of 5 for 100% coverage past $11000. Yes, I'm healthy and yes, that will go up as I age (but the increase has been minimal so far--and far less than other insurance plans are increasing every year), but for most people, it's a much better option than Cadillac plans--that money the company spends on benefits could be in your pocket. Plus, as doctorcoug says, it's a retirement vehicle. I get to invest an extra $6000 every year completely tax free (better than an IRA--tax isn't even deferred). You have to keep a certain amount in cash but the rest is in an index fund and growing--tax-free.

[Surfah]

'Cadillac' health care plans still exist especially with companies that are heavily union based. Even these companies will have to make drastic changes to their health insurance by 2018 because of the 40% Obamacare tax on 'cadillac' plans that is kicking in. Remember, if these companies change their healthcare plans it will be due to the greedy bastards running the companies and not because of Obamacare. Recall that President Obama promised us that nothing will change because of Obamacare:

[YOUTUBE]DXqKp5B0ZLE[/YOUTUBE]

Clearly, the companies that grant us money for are daily bread are the 'bad guys' here.

This company is a small start up, employee owned with just 90 employees. I expect it to change drastically over the next several years regardless of Obamacare or not.

[Clark Addison]

Don't HSAs allow you to roll the money over from one year to the next? I have a FSA (only option at my old job...I'll see about the new job soon) and had to use the money up by year end. This kept my contribution amount low because in a typical year we don't rack up more than $1,500 in health care related expenses. Last year I put in $800 and we all went out and got some extra pairs of glasses to use up the money.

You are correct that HSAs can rollover to future years. That is one of the benefits. We are putting over $5K into out HSA this year, so if we couldn't roll it, it would be somewhat of a risk (though not a huge one the way we go through health care costs). Also, anything above $1,000 in your HSA can be invested.

[Uncle Ted]

You are correct that HSAs can rollover to future years. That is one of the benefits. We are putting over $5K into out HSA this year, so if we couldn't roll it, it would be somewhat of a risk (though not a huge one the way we go through health care costs). Also, anything above $1,000 in your HSA can be invested.

Yes, I do my HSA at Bank of America and they even allow me to invest into a lot of different mutual (like) funds. It is like a little investment account. Since it is before taxes I try to max it out every year (something like $6,200 currently).

(Clark, you can buy me lunch for the BofA plug.)

[U-Ute]

Don't HSAs allow you to roll the money over from one year to the next? I have a FSA (only option at my old job...I'll see about the new job soon) and had to use the money up by year end. This kept my contribution amount low because in a typical year we don't rack up more than $1,500 in health care related expenses. Last year I put in $800 and we all went out and got some extra pairs of glasses to use up the money.

They changed the rules a few years ago on FSA's in that you have until the following June to use it up. Now you have some overlap and don't have to either lose it or pay some out of pocket to make sure you use it up.

[Moliere]

So why would anyone choose a FSA over a HSA? Is the only reason that HSAs require a high deductible plan while FSAs can be used for any plan? Since I'm fairly liquid I'd prefer the high deductible plan with the HSA.

[beefytee]

Like others here and as I've mentioned before, I am losing my PPO 100% covered, $0 co-pay plan that is being replaced by an HSA plan where $2500 will now come out of my pocket. It is still a great plan and better than any insurance I've had at any other company, but it is a $2500 pay reduction.

[smokymountainrain]

So why would anyone choose a FSA over a HSA? Is the only reason that HSAs require a high deductible plan while FSAs can be used for any plan? Since I'm fairly liquid I'd prefer the high deductible plan with the HSA.

That is the main reason - if a company's traditional plans are good and the HDHP options suck, there may not be a good reason to pass up the traditional plan and do the FSA. A secondary reason would be that in an FSA the funds are available up front, where with a HSA you actually have to have the money in the account in order to use it.

Just answering your question. I'm in no way advocating a FSA over HSA. I've done HSAs for about eight consecutive years with three different companies.