Health Savings Account - Suggestions for more

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Timber82
Posts: 166
Joined: Mon Feb 27, 2017 2:39 pm

Re: Health Savings Account - Suggestions for more

Post by Timber82 »

Not sure if you were responding to my inquiry or not. I was asking some details of how it works, what's the bi weekly portion deducted from your check, and does the govt put any of that money into the HSA account for you?

When I had an HDHP many years ago I got back over half of my paycheck deduction as my company would put it in my HSA account, so even if I didn't put any money into it the balance would still grow. Wasn't even considering the investing portion of it (yet at least lol).

mmmmmbeer
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Re: Health Savings Account - Suggestions for more

Post by mmmmmbeer »

Timber82 wrote:Not sure if you were responding to my inquiry or not. I was asking some details of how it works, what's the bi weekly portion deducted from your check, and does the govt put any of that money into the HSA account for you?

When I had an HDHP many years ago I got back over half of my paycheck deduction as my company would put it in my HSA account, so even if I didn't put any money into it the balance would still grow. Wasn't even considering the investing portion of it (yet at least lol).


Nope... no money, no matching. The only good thing of it is, it's pre-tax.

So... you have $2500 to spend for the year pre-tax, saves a bunch as that same $2500 after taxes would only have like $1650 buying power...

$850 going more towards your co-pays, medications, etc...
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evilanne
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Re: Health Savings Account - Suggestions for more

Post by evilanne »

mmmmmbeer wrote:Nope... no money, no matching. The only good thing of it is, it's pre-tax.

So... you have $2500 to spend for the year pre-tax, saves a bunch as that same $2500 after taxes would only have like $1650 buying power...

$850 going more towards your co-pays, medications, etc...
Do you have a Health Savings Account that doesn't have to be spent within the year or is it FSAFEDS https://www.fsafeds.com which is available with or without a high deductible plan? FSAFEDS provides same tax benefit but you have to be able to estimate your medical expenses pretty accurately because you have to use it within certain period of time.

I don't have a HDHP but this may be helpful for Timber82: https://www.opm.gov/healthcare-insuranc ... questions/ Also, if you look at the actual plan, the government does pay a portion of the premium but it doesn't address the Health Savings Account e.g. for GEHA HDHP: https://www.opm.gov/healthcare-insuranc ... f#page=128 look at the last page for summary of plan

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mjedlin66
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Re: Health Savings Account - Suggestions for more

Post by mjedlin66 »

Timber82 wrote:Not sure if you were responding to my inquiry or not. I was asking some details of how it works, what's the bi weekly portion deducted from your check, and does the govt put any of that money into the HSA account for you?

When I had an HDHP many years ago I got back over half of my paycheck deduction as my company would put it in my HSA account, so even if I didn't put any money into it the balance would still grow. Wasn't even considering the investing portion of it (yet at least lol).


The deduction from your check is only the premium that you see when you sign up for the health plan. Of the premium, some of it is passed through to the HSA by GEHA.

From the GEHA brochure:

• The maximum contribution to your HSA may not exceed the maximum contribution amount set by the IRS of $3,400 for
an individual and $6,750 for Self Plus One or Self and Family.
Page 16

In 2017, for each month you are eligible for an HSA premium pass
through, we will contribute $62.50 per month to your HSA for a Self Only enrollment or
$125 per month for a Self and Family enrollment or $125 per month for Self Plus One
enrollment. In addition to our monthly contribution, you have the option to make
additional tax-free contributions to your HSA, so long as total contributions do not exceed
the limit established by law, which is $3,400 for an individual and $6,750 for Self Plus One
or Self and Family. See maximum contribution information on pages 35-40. You can use
funds in your HSA to help pay your health plan deductible. You own your HSA, so the
funds can go with you if you change plans or employment.
Page 33

I have self plus one. The bi-weekly premium is $121.91. So at 26 pay periods, I pay $3169.66 annually.

The passthrough is $125 per month, or $1500/year.

So just by paying my premium, my HSA is primed with $1500/year.

The annual limit of $6750 includes the pass-through (Unlike the TSP or 401k limits which exclude employer contributions). So $6750 - $1500 = $5250.

I *elect* to contribute more to my HSA on top of my premium. MyPay makes that extremely easy to do via HSA allotments. To fully fund the HSA I need to provide another $5250. At 26 pay periods, that is about $202 per paycheck. You can change or cancel your HSA allotment at any time and it has no effect on your health plan.

I can log into my account at HSA Bank and from there I can move it to an investment plan. TD Ameritrade is one option and I don't remember the other.
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Timber82
Posts: 166
Joined: Mon Feb 27, 2017 2:39 pm

Re: Health Savings Account - Suggestions for more

Post by Timber82 »

mjedlin66 wrote:[

I have self plus one. The bi-weekly premium is $121.91. So at 26 pay periods, I pay $3169.66 annually.

The passthrough is $125 per month, or $1500/year.

So just by paying my premium, my HSA is primed with $1500/year.



This is what I was looking for!

Could anyone share what their typical copay is when they go to a normal doctor? Or how I can find this stuff out myself, I have a daughter that is turning 2 so "expected" doc visits will be fewer and further between very soon however I also have a pretty pricey prescription I would need to play with the numbers I suppose. I like having a nest egg for medical issues as they say health is the biggest expense when we retire.

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Aitrus
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Re: Health Savings Account - Suggestions for more

Post by Aitrus »

Here's how we figure out how much to put into our FSA each year.

We have Blue Cross Blue Shield, Self and Family. I pay 173.59 per paycheck ($4,513.34 per year). My copays are $30 per visit, and $2 - 10 for most of our meds. I have two daughters, one of whom has a blood disorder that causes her to be sicker more often than most kids.

We plan on 3 trips to the doctor for each member of the family every year. I might go only once or twice, but the daughter might go 4 or 5 times, so 3 per member evens things out. A total of 12 trips at $30 a pop is $360.

Medications are about $50 every three months, so $200 a year.

That's $560 for the year in expected costs. For emergency purposes, we add in another $440 for random things like tooth extractions or dental emergencies, non-routine hospital visits, etc. This means $1,000 in FSAFEDS, with $560 a year of normal expenses. Since we can roll $500 over into next year, we really aren't risking much if we don't use all of it. If we're close to not spending that $500, a nice, relaxing visit or two to the chiropractor around the end of the year will get us over the $500 line.
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