If you are under 30, you may also be able to buy a high-deductible, catastrophic plan. Author Topic: HSA vs. post tax account (Read 1445 times) jimmy0000. I pay half and my employer pays half $135 per month for a total of $270. I contribute the maximum yearly ($3,350 for 2016 for an individual) most years. You can use your HSA to pay deductible expenses, as well as copays and some other health care expenses that are determined by the individual HSA. An HSA account is like an FSA (flex savings account) except with the HSA you don't have to run around spending all the money in it at the end of the year because of a fear of losing it. I haven't had to use a doc for the past 8 years. Who is eligible? In addition, companies may offer workers the ability to contribute pre-tax money to their own health savings accounts. In total, the fees on an HSA can easily add up to at least $150 per year. It also is rewarding them with a tax deduction. Where usually hmos restrict you to going to doctors in network, a pos will let you go to out of network providers - usually with higher cost sharing payments on your part. Then you submit a claim to your POS plan to pay you back. My company is small and I try and ask questions, but when I do they are just as confused as me. Cookies help us deliver our Services. You can open an HSA with any HSA eligible health plan, and use those tax deductible funds to pay for eligible medical costs. The HSAs are high deductible plans where the insurance doesn't kick in until you meet that deductible. Yes, the money stays with you. I would be surprised if there was no out of net work deductible but it's possible (I'd assume there was a higher co pay or coinsurance for out of network than in network). If this all sounds too good to be true, then you're not alone. HSA vs. PPO: The Takeaway HDHPs typically benefit healthier consumers who don’t expect much medical attention for the year. What is a dome account? A PPO (Preferred Provider Organization), refers to the network coverage your health plan gives you access to. I was the only one at my small company doing the HSA … There's no time limit. Emergency services at an out-of-network hospital must be covered at in-network rates, but non-participating doctors who treat you in the hospital can bill you. HSA eligible plans are available in pretty much every state. While HSA owners can use the money from their HSAs to pay for qualified medical expenses, they must be enrolled in an HDHP to actually contribute to their HSA. This varies depending on the type of plan -- HMO, POS, EPO, or PPO, You can set up a Health Savings Account to help pay for your costs. That said, every plan is different. And yes the hsa is almost undoubtedly minimum essential coverage for Obamacare purposes if it's an insurance company product. FSA (Flexible Spending Account) and HSA (Health Savings Account) are tax-advantaged accounts for healthcare expenses but they differ in terms of who is eligible, who owns the funds, whether funds are portable or roll over, contribution limits, and eligible expenses. POS primarily just describes the type of network. HSA Plan vs Traditional/PPO Plan. You can see out-of-network doctors, but you'll pay more. I am currently on my employer provided plan, and H and our baby M are on H's employer provided plan. The general rule of thumb is that if you don't expect many medical expenses then consider the higher deductible HSA plan. The higher deductible means that you will pay more up-front for medical service on the HSA plan. I have the option to choose from a POS and a POS HSA. POS plans cost less, but offer fewer choices than PPOs. Plus, if you take money out of your HSA for non-medical expenses, you will have to pay taxes on it. But it can be the cheaper option since you have cheaper premiums and can save money tax free in the HSA. Higher out-of-pocket costs if you see out-of-network doctors vs. in-network providers, More paperwork than with other plans if you see out-of-network providers. No coverage for out-of-network providers; if you see a provider that is not in your plan’s network – other than in an emergency – you will have to pay the full cost yourself. Paperwork involved. There's little to no paperwork with an EPO. The only difference is the POS is (202 per month) and the POS HSA (135 per month). Now is the time you can make changes to your health insurance selections through your employer. What doctors you can see. While you can only get an HRA through an employer, an HSA is available to anyone who meets the basic eligibility requirements. Traditional Health Plan This tool is designed to help you compare a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) to a traditional health plan. An HMO delivers all health services through a network of healthcare providers and facilities. HSA offers tax deductions, while PPOs do not. HSA vs. FSA: What’s the difference? In order to have a HSA, you must be enrolled in a HDHP. The health savings account funds that are put in by you or your employer are usually special tax treated but can only be used for health costs. From all the brochures there really wasn't info on what I can and cannot use the HSA for. Then you have to file a claim to get the PPO plan to pay you back. Before choosing any health plan, make sure to review the details of coverage. It's real but there's plenty of economists who view it as unfair to the system because it tends to herd healthy people with $3,350 (or whatever amount they put in it up to that) in income that they can do without immediately, into low-premium plans where they are not doing as much to subsidize the heavy users. Flexible Spending Account: An Overview . The HSA plan is cheaper than your other plan and you get the HSA tax deduction for whatever you put into it. For instance, plans may pay for preventive services, such as mammograms, before the deductible is met. The money comes out of your paycheck pre-tax (meaning it lowers your income taxes because the government doesn't apply income taxes to that money) and then it compounds tax-free. A moderate amount of freedom to choose your health care providers -- more than an HMO; you do not have to get a referral from a primary care doctor to see a specialist. Paperwork involved. A POS plan blends features of an HMO with a PPO. An HSA ( Health Savings Account) is a savings account you can use with a high-deductible health plan (HDHP).