Is a MSA or HSA better than traditional plans?

Question

I'm shopping for health insurance for my husband and I and I'm not sure if an MSA/HSA would be a better plan than a traditional family plan. Does anyone have any experience or advice on this issue that may help in our decision? Thanks!

Answer 1

Like in your situation,I would like to advise you have a look here.http://health-insurance.expert-tip.info/...

Answer 2

First...MSAs are gone so you don't need to worry about that.  Secondly...other than qualifying for a plan health-wise...whether you've had alot of claims or very little claims has NO BEARING on whether an HSA makes any sense.  I don't know where people come up with this notion.

It's as simple as this assuming that the benefits and coverages are the same (which most of the time they are).  (in simple terms anyway) If a $0 deductible HMO/PPO costs more than $200/month than an HSA that has a $2400 (12X$200=$2400) then you do the HSA.  The HMO/PPO is going to have copays that you go into you pocket for while the HSA will fund your visits out of the account..  Just make sure you stay away from "saver" type HSAs (and non-HSAs too).  Saver plans (which are offered by reputable companies) limit benefit and should be avoided.

Then if you have alot of claims the savings account gets depleated and if you have very little it stays there.  In either case you've spent less than the HMO/PPO.  There was a time about 7 or so years ago when you could get (in my state) a non-HSA plan at a $500 deductible for the same rate as a $5000 HSA, so that's the case where they obviously don't make sense.

Look at some useful info on my site regarding HSAs and also click on my blog as you'll most definitely want to read the blog regarding the "$0 Deductible HSA."

Hope that helps.  

Jeff

Answer 3

I'm not familiar with an MSA. An HSA (Health Spending Account) is traditionally offered by companies to help cut down on healthcare costs, by transferring more of the load onto the employees. You should review the plans carefully before making a decision.  HSA plans are high-deductible plans, and the money that is deposited into your HSA is used to help you pay for deductible and your coinsurance. Sometimes, employers offer a flat amount at the beginning of each plan year, and then you, as the employee, can add to it on a pre-tax basis. The money is yours as soon as it is in the account and you won't lose it at the end of a plan year (unlike an FSA-flexible spending account).

If it's just the two of you and you're not planning on having children any time in the near future, then an HSA may be a good choice, especially if you're very healthy and have had less than $2500 in medical expenses in the last 48 months, and have the option of changing to a traditional plan (not a high deductible plan) during open enrollment.

If you have children, or if you have had more than $2500 in healthcare expenses (out of pocket expenses) in recent years, then an HSA is probably not a good idea. Usually, employers don't offer an annual stipend that is equal to more than the deductible for one family member, and sometimes the plans can have higher coinsurance amounts (you may be responsible for 70% coinsurance, rather than 90%, for example).

It's never easy to shop for health insurance. Review your past medical expenses, think about how healthy you both are, and whether or not you're planning on having children.  What are the deductibles for each plan? The coinsurance? What are your out of pocket maximums? Lastly, what do the  plans cover? Make sure you don't get short-changed with maternity, prescription, or hospitalization benefits.

Good luck!