So I’m considering which of the utterly depressing offerings available on the Healthcare Marketplace is the one that I should select for the “World’s Most Appallingly Expensive Flu Jab” ™ and the first two options were interesting, to say the least.
One has a deductible/out-of-pocket maximum of $8,150 and the other one is a HSA-eligible HDHP with a deductible/out-of-pocket maximum of $6,900.
In all other respects, the Summary Plan Description shows these two plans are identical in terms of co-pays, co-insurance, and exclusions.
Essentially, for about $200/yr extra premium which can be written off, I could save round $1,000 in the catastrophic instance in which I actually use the plan.
Seems a no-brainer wager to me! ??
But the rules governing the Health Savings Accounts is where it gets interesting, especially considering that I don’t have an open HSA account.
The rules are clear that to contribute funds into the HSA, one MUST have a HSA-eligible High Deductible Health Plan (HDHP) active at the time of contributions.
What is not so clear is whether the reverse is true…i.e. if I select the HSA-eligible plan, am I absolutely required to have an open HSA account whilst that HDHP is in force?
Now it’s time to play “Stump the Chumps” (my favourite segment from “Car Talk” where people would describe their vehicle’s malady to Click and Clack and they’d diagnose the problem with a very decent success rate) with the customer support people at Healthcare.gov.
After ten attempts to get the representative to understand what is a very simple question that doesn’t really have an answer anywhere in the available FAQs and after consulting two supervisors, he finally gave up and suggested calling BCBSNC.
I’m pretty sure that was going to be an utter waste of time (been there, done that…took them over a hour to admit that they would cover emergency care at in-network rates at WakeMed which is five minutes away from my house and are, of course, not in my ever-narrowing network of providers which is now only a few-counties from the state-wide network it used to be!)
The credit union that offers HSA accounts did have the answer and I should have trusted in the OCD of bankers to know every nuance of the regulations:
NO, merely selecting a HSA-eligible plan does not require an active HSA account. The insurer won’t cancel the HSA-eligible insurance plan if you don’t have a HSA (but you won’t be able to take advantage of the tax-advantaged features the HSA offers, either).
Mind you, I was thinking I just didn’t want to go through the hassle of opening a HSA. But I’ve always wondered if it were strictly required. With an employer-sponsored HSA plan, it is if they’re making contributions. But in the individual market, this answer wasn’t so obvious.
But after realising that after-tax deposits (limited to the yearly contribution limits regardless of source) to a HSA account can be also deducted from income and can grow tax-free in the account and are not taxed on use provided it’s for a legitimate expense…I’ll probably end up opening one anyway.