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Health Insurance Question - THIS IS NOT A POLITICAL THREAD!

Discussion in 'The OT' started by Herdfan, Oct 22, 2013.

  1. BattleScott

    BattleScott Hall Of Fame

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    They are great as long as you don't have to spend a lot on health care. Unfortunately, the OP has recurring expenses that make HSA's less attractive than lower deductible traditional plans.
     
  2. 4HiMarks

    4HiMarks Hall Of Fame

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    That's not necessarily true. It depends on the relative costs of premiums of the two plans. If the difference in premium is greater than the difference in deductible, you're still better off with a HDHP with HSA. If a HDHP has a $1250 deductible, but only costs $200/month, it is better than one with $0 deductible that costs $500 a month. Under the first scenario, you pay $2450 per year, while the second costs you $6000. (Numbers for illustrative purposes only).
     
  3. Herdfan

    Herdfan Well-Known Member

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    Got the "letter" today. The good news is my current plan is compliant with the ACA according to the insurer. Not sure how given it has a maternity benefit as an option.

    The good news is I can keep what I had for only $29 a month more. :) The bad news I guess is that they are cancelling it at the end of 2014.
     
  4. klang

    klang Hall Of Fame

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    Is the contract date before the end of the year? If so the full effects of ACA won't take effect for another year.

    Aetna offered to change the date on our group policy from 12/31 to 11/31 to put it off for 11 months. Our insurance broker advised against it for some reason.
     
  5. 4HiMarks

    4HiMarks Hall Of Fame

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    Would that have to do with the fact there is no such date as 11/31?
     
  6. klang

    klang Hall Of Fame

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    OK, 11/30. My bad.
     
  7. dpeters11

    dpeters11 Hall Of Fame

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    One benefit of an FSA is that it's front loaded, you don't have to wait to accumulate money. And the rules just changed:

    Employers can now allow $500 to roll over to the next year. But there's a catch, they cannot offer both the grace period and the rollover, it's one or the other. So now if someone had $700 left over, they could use all of it in the first 2.5 months of the new plan year. If the employer moves to the rollover, $500 could be used all year, but $200 would be lost. The Treasury Department literally announced this rule yesterday. The employer has to allow it and they can choose an amount lower than $500. Is what's forfeited profit to the company?

    But generally I would agree particularly long term, HSAs are much better.
     
  8. SayWhat?

    SayWhat? Know Nothing

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    I haven't really paid very much attention to this topic anywhere as I'm pretty sure I'll be exempt. However, I did see a New York Times article about how so many people will be eligible for $0 premiums (which I'm pretty sure I would be). In it, they mention an annual deductible of something like $6300.00 to which I laughed out loud. I haven't spent $6300 in medical expenses in the last 20 years all totaled. Most years, I haven't spent a dollar on anything that even might be covered. And (unless something unfortunate happens), I don't see myself changing those figures over the next 20 years.

    If I can qualify to get it for free, I might consider it, but even paying one of the reduced premiums mentioned (under $50/mo) would be akin to throwing money away in my case. Yes, I know there's always that chance of something bad happening, but insurance of any kind is a gamble. In my entire driving life, I haven't made claims anywhere near even a quarter of what I've paid in premiums. Personally, I'd rather keep the money somewhere earning interest than pay premiums.
     
  9. dennisj00

    dennisj00 Hall Of Fame

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    I don't know you, your age or your lifestyle, but this is so wrong. I can remember being in good health (and still am) and not spending any money on doctors or medicine. . .

    but I urge you to not go to Vegas or buy lottery tickets or use up any of your luck. Because in the next 20 years you will find some situation that will drain your bank account unless you fall over dead.

    It could be a 6 year old son that develops kidney disease and needs $4000 a month in drugs for LIFE, AFTER the transplant . . .

    or a spouse that is diagnosed with a brain tumor and has multiple operations for 2 or 3 years before dying. . .

    or yourself that finds you have cancer and needs to start making meth to pay for your hospital bills (BB) . . .

    Good luck saving your premiums.
     
  10. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

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    With the high deductible and rebate (if qualified) bringing the monthly cost down a cheap plan that is actually insurance may be possible. I have not looked myself since my employer offers "affordable" insurance and I would get no rebate buying from the government exchanges. I would need to find a plan that full price was better than my employer subsidized plan.
     
  11. Cholly

    Cholly Old Guys Rule! DBSTalk Club

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    I've been fortunate for most of my life to have had Medical insurance coverage at low cost through my employer, which has continued through my retirement years (with Medicare being my primary provider). My employer has decided to drop subsidized insurance plans for retirees (and perhaps current employees) in favor of HRA's (Health Reimbursment Arrangements), leaving it up to the individual to acquire insurance. Because the choice for a health plan varies with the individual's needs, assistance in selecting plans (medical, dental and vision) has been made available through a firm that specializes in providing such assistance (basically a private exchange). Turns out for me, that AARP offers the best Medicare supplement plan. My dentist doesn't participate in any networks, so dental insurance will pay only "out of network" benefits.

    Over the years, despite being a healthy individual, I've made good use of health insurance. My three kids all went through allergy shots for several years. My late wife had gall bladder surgery, thyroid surgery and treatment for tachycardia -- all covered by insurance. Over the past few years, I've become the one who has benefited from insurance. I scraped my leg on a metal stadium bench and wound up with cellulitis, which put me in the hospital for five days. A year ago, at a regular medical checkup, I mentioned to my doctor that I tired easily. He set me up for physical therapy to improve my endurance. At my first scheduled visit, the therapist went through the process of taking my vital signs. When it came to my pulse, measured by a pulse oximeter, it read 40! Understandably alarmed, I went back to my doctor, who ordered an EKG, which showed an irregular heart beat with extra beats. The EKG was transmitted to a cardiologist and I was given a same day appointment to see him. He, in turn, ordered a battery of tests, including a video ultrasound test. All the tests showed a strong heart, but the ultrasound showed that I had a hiatal hernia. My stomach had protruded through my diaphragm and was pressing on my left lung. The cardiologist recommended hernia surgery, which was performed this June. Unexpected by me, it resulted in two weeks in the hospital (one in ICU due to complications), another two weeks of physical and occupational therapy in rehab center and five weeks of home care.

    My point is this: I could never have afforded the unforeseen expenses I incurred without insurance coverage. This year, the hernia surgery, hospitalization and rehab cost well over $100K!
    Am I in favor of some form of universal health insurance? Yes, indeed. Am I in favor of Obamacare? Not in its present form. In my opinion, the law needs fixing, not repeal. It's well intentioned, but terribly complex.
     
  12. Bill Broderick

    Bill Broderick Icon

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    The front loaded portion can be a big deal for some people. One of my co-workers knows that his daughter will need braces on her teeth next year. At my company we have the option between a "classic" health plan (where the dedcutible has increased over the past 2 years) or a high deductible health plan. With our HDHP, we can't use FSA money until we've covered our deductible. However, the deductible on our dental plan is very low. He plans on having both an HSA and FSA next year. He's going to max out the FSA and essentially treat it as an interest free loan from the company. He will continue to fund an HSA with the amount of our deductible.
     

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