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Employees Start to Feel the Squeeze of High-Deductible Health Plans

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Re: Employees Start to Feel the Squeeze of High-Deductible Health Plans

#21

Post by jak92 »

johnnyletrois wrote: post #12
tptacek wrote: post #4

Isn't the point of an HDHP that you're supposed to set up an HSA to go with it? Premiums for HDHPs are significantly lower than for normal health plans; the idea is that you're supposed to use the premium savings to fund the HSA, which is then money that carries over year over year, right?

Not all employers offer HSAs to go along with their HDHPs. Mine doesn’t and it’s very frustrating. I want to save pretax money in an HSA but I can’t.

I don't understand that. Literally the only "benefit" of a HDHP is the HSA. Why do employers not offer one?

Re: Employees Start to Feel the Squeeze of High-Deductible Health Plans

#22

Post by [deleted] »

mrosett wrote: post #2

You can argue that the ACA improved the healthcare system overall. But it's been tough for people who were already covered by employer insurance. I think people fail to appreciate that prior to the ACA, when the healthcare system worked, it actually worked really well. I got very sick at the age of 20 while I was still on my parents very modest insurance (pre-ACA). Within 48 hours I had an appointment at the best onc…

[deleted]

Re: Employees Start to Feel the Squeeze of High-Deductible Health Plans

#23

Post by dsfyu404ed »

paxys wrote: post #8

High-deductible health plans were always designed to benefit employers. My company switched us to one with a big PR campaign highlighting how everything would be better (contributions to HSA - free money!). The only "advantage" is that companies have to pay smaller premiums and employees are greatly discouraged from getting care due to high costs. Funny enough, employers are rethinking this now since employees not ge…

If you spend a lot on healthcare (i.e. have a family) then a HSA works fine since you hit your maximums really quick and then only pay some small % of the sticker price after that.

For everyone who isn't gonna spend a few grand in healthcare every year it totally sucks and is a massive incentive not to have routine care done.

Re: Employees Start to Feel the Squeeze of High-Deductible Health Plans

#24

Post by jcims »

johnnyletrois wrote: post #12
tptacek wrote: post #4

Isn't the point of an HDHP that you're supposed to set up an HSA to go with it? Premiums for HDHPs are significantly lower than for normal health plans; the idea is that you're supposed to use the premium savings to fund the HSA, which is then money that carries over year over year, right?

Not all employers offer HSAs to go along with their HDHPs. Mine doesn’t and it’s very frustrating. I want to save pretax money in an HSA but I can’t.

Can you get a private HSA?

Re: Employees Start to Feel the Squeeze of High-Deductible Health Plans

#25

Post by defen »

tptacek wrote: post #4

Isn't the point of an HDHP that you're supposed to set up an HSA to go with it? Premiums for HDHPs are significantly lower than for normal health plans; the idea is that you're supposed to use the premium savings to fund the HSA, which is then money that carries over year over year, right?

If it's an employer-provided plan, though, you don't generally see the premium savings. My employer provides the option (through one of the major payroll/HR providers) of a "regular" plan or a high-deductible plan, but neither choice affects my take-home pay. I still chose the HDHP though because I'm generally healthy and it lets you invest pre-tax money with no capital gains tax, which is nice.

Re: Employees Start to Feel the Squeeze of High-Deductible Health Plans

#26

Post by maxxxxx »

paxys wrote: post #8

High-deductible health plans were always designed to benefit employers. My company switched us to one with a big PR campaign highlighting how everything would be better (contributions to HSA - free money!). The only "advantage" is that companies have to pay smaller premiums and employees are greatly discouraged from getting care due to high costs. Funny enough, employers are rethinking this now since employees not ge…

Totally agree. All “innovations” like HSA and 401k are designed to make life easier for employers but are sold as benefit for employees.

Re: Employees Start to Feel the Squeeze of High-Deductible Health Plans

#27

Post by duxup »

mrosett wrote: post #17
duxup wrote: post #3

Earlier quoted context omitted.

How so? The choice of covering crappy plans is the employer's choice... and crappy plans are what have been pushed AFTER the ACA was passed. Largely by the GoP... Is that what the ACA was, or what someone(s) who want it to fail want? There's a weird narrative where any event is tied to the ACA while they ignore what the healthcare system is in the US overall.

> There's a weird narrative where any event is tied to the ACA while they ignore what the healthcare system is in the US overall. The ACA fundamentally shifted the landscape for the whole healthcare system with minimum coverage mandates (including employer plans), guaranteed issue, etc. It's also led to higher demand for medical services (ie because more people are covered - a good thing) at a time when the number of…

The trend of higher and higher medical costs, employer plans trending down as far as benefits and up as far as costs was established long before the ACA.

Re: Employees Start to Feel the Squeeze of High-Deductible Health Plans

#28

Post by maxxxxx »

tptacek wrote: post #4

Isn't the point of an HDHP that you're supposed to set up an HSA to go with it? Premiums for HDHPs are significantly lower than for normal health plans; the idea is that you're supposed to use the premium savings to fund the HSA, which is then money that carries over year over year, right?

In my company the HSA premiums are not much lower.

Re: Employees Start to Feel the Squeeze of High-Deductible Health Plans

#30

Post by jetrink »

tptacek wrote: post #4

Isn't the point of an HDHP that you're supposed to set up an HSA to go with it? Premiums for HDHPs are significantly lower than for normal health plans; the idea is that you're supposed to use the premium savings to fund the HSA, which is then money that carries over year over year, right?

I'm self-employed, so I get insurance through the marketplace. The plans that qualify for use with an HSA are more expensive than plans that are not legally HDHPs, but just happen to have a $6000 deductible and $7900 max out of pocket. They are so much more expensive, in fact, that they completely negate the tax advantages (which are significant.) As a result, I contribute to a basic savings account instead of an HSA, but I could see many people hoping for the best and not saving at all.
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