So, when I get intoxicated, the below is what I like to talk about (according to Greg): The HSA plan, offers an entirely different option from the plan with regular copays. All preventive visits and tests: yearly physicals, mammograms, colonoscopies, vaccinations, etc. would be covered but any other medical issues would be paid 100% by the employee up to the deductible and then 20% by the employee up to the “out of pocket maximum”. BUT, the employee would have a Health Savings Account (HSA) which the employee could use to cover those out of pocket expenses. HSA accounts are very different from the more familiar FLEX accounts. In Flex accounts, one elects the amount they want taken out of their regular paycheck, pre tax, and then can use the entire amount in the very first month if they wish to. At the end of the year, if the employee has not used up all their Flex account, they lose it. HSA accounts do Not go away. An employee can contribute to it pretax as long as they are on what is considered a “high deductible” plan, which in 2013 was $1,250 or higher. The account is portable and stays with them if they leave their job. If they end up in a plan that is not considered a high deductible plan in the future, they can still spend out of it. They just can’t add to it. And, if they still have the account after they turn 65, they can use the money for anything. The only bad thing is they can only use what is in the account. They can’t elect to put $1,000 in and then spend that $1,000 in the first month of it. I wrote all the above, off the cuff, in an email to explain it to our insurance committee. I find this stuff fascinating because I am that boring.
Posted on: Thu, 14 Nov 2013 23:52:44 +0000
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