Put my fiance on my HSA or have her purchase her own insurance?

Question

Me (28) and my fiance (24) both have jobs that offer health insurance. The plan offered where I work is a HSA plan with a $2500 deductable, with 100% coverage after that, to which my employer contributes $50 monthly to the HSA. The share of the plan they pay, $350, is such that it cost me nothing to have this plan. Likewise, even adding my fiance still cost nothing to me monthly (the rate is below $350) I feel this is a sound option, considering that we are generally healthy and only really need catostrophic coverage. Plus, the HSA offers one free physical yearly, which is all we really need. (pap ect is included) Her plan, on the other hand, is a traditional 80/20 plan coming in at $100 monthlywith a $250 deductable.I feel she would be further ahead to just contribute to the HSA, but she doesn't trust it and wants to pay for coverage at her current job- I think she just throwing her money away, and that $100 monthly is to much considering she only makes $10 hourly. What should we do?

Answer 1

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Answer 2

It definitely looks like you considered your options. However, since she is your fiance, first you will need to verify with your employer that she is even eligible to be placed on the plan. Typically only spouses (either through marriage, common law or domestic partnership) and children can be added on. If you live together, you may be able to qualify as common law to add her on depending on the laws of your state, whether the insurance company allows it, and the employer's health plan language.

If she doesn't qualify to be on the plan at this time, she should either elect the coverage through her company or purchase an individual plan - you both may want to review those before enrolling to see if there is a cheaper product that still meets your needs. However, when you marry, it will be considered a qualifying event, which will allow you to add her onto your plan within 30 days of your wedding date (if she wants to be on it), and will also allow her to cancel her policy at that time. If you don't do this within 30 days of the wedding, you'll have to wait until the next open enrollment periods at your jobs to make any changes.

Since you are young your plan sounds like a good idea for both of you since you have the wellness benefit, and you'll most likely only need catastrophic coverage at your age. However, a lot of people feel comfortable with traditional plans such as the one your fiance is considering, and remain skeptical on HSA's largely because they don't know much about them and sometimes feel they are confusing. Also you should look at the amount of the family deductible since that is what will apply if your fiance is added. I think you're only noting the individual - for most plans it's only twice as much for Family but sometimes it is 3 times as much so you will want to take that into account as well. However, if you are looking at starting a family or your health changes, you may want to re-evaluate to ensure that the plan still meets all your needs.

Best of luck with selecting your plans.

Answer 3

I was just reading an article in July's Men's Journal Magazine about HSAs. It sounded pretty smart and they recommended it if you were in good health. Perhaps you might show your fiance some articles on it if you haven't already. Maybe its best to just go ahead with you, and then after a year show her how well its going for you and then perhaps she will be more comfortable with the idea.

Answer 4

Sounds like the HSA is a  good deal. You didn't state whether the $2500.00 is per person, or per family. If it is per person, she should stick with her current plan.

If she is not comfortable going on your plan, and wants her own insurance, she should have that.

Perhaps she is really giving you a message--that she wants to see if you two will last, before mixing your finances. You know, once you leave a plan, you can only go in during the open enrollment period. Otherwise, the insurer can underwrite, and exclude pre-existing conditions, or reject you. I realize you said you are both healthy now, but no one has a crystal ball and knows if that will be the case a year from now. Best of luck, whatever you two decide.