First some numbers for 2021 from the IRS:
Annual contribution limitation. For calendar year 2021, the annual
limitation on deductions under § 223(b)(2)(A) for an individual with
self-only coverage under a high deductible health plan is $3,600. For
calendar year 2021, the annual limitation on deductions under §
223(b)(2)(B) for an individual with family coverage under a high
deductible health plan is $7,200.
High deductible health plan. For calendar year 2021, a “high
deductible health plan” is defined under § 223(c)(2)(A) as a health
plan with an annual deductible that is not less than $1,400 for
self-only coverage or $2,800 for family coverage, and the annual
out-of-pocket expenses (deductibles, co-payments, and other amounts,
but not premiums) do not exceed $7,000 for self-only coverage or
$14,000 for family coverage.
Focusing just on the family plan numbers:
- Deductible $2,800 or higher
- Maximum out of pocket $14,000 or less
- Maximum amount you can put into the HSA $7,200
Here is some info from your question:
- However, they pay the premiums 100%, so I would be putting the money I spend on premiums for my family into this.
- I currently spend $159.50 twice a month on insurance premiums for medical.
- In addition, I spend 114.58 twice a month to fund my FSA, which is capped out at $2700 and which we usually spend most if not all of in a
So looking at your current spending: of $274.08 twice a month, or $6,577.92 per year. That means that you can almost completely fund the HSA with the same money you were spending on the premium and the Flex Spending account. Just like your old plan this will be 100% pre-tax, without the use or lose risk.
You will need to know what happens between $2,800 and $14,000. In the plans I have had access to it has been 20% paid by the employee and 80% paid for by the plan. You should be given this information with or after the offer letter. Please ask for this detail.
If prescriptions coverage is important look to see what they charge for prescriptions before the deducible is met. You shouldn't have to pay full price.
Before the deductible is met you generally pay for everything except the procedures like a annual physical, and other items defined in the Affordable Care Act. But if you are going in-network even for those things you have to pay for, there should still be discounts due to the negotiated rates.
Whenever you are switching insurance providers, and sometimes even when switching plans within the same company, make sure you know if your current doctors and providers accept the new plan. Going out-of-network can be much more expensive in this type of plan.
This answer has completely ignored dental and vision coverage, because it wasn't mentioned in the question. They may have separate premiums, and in your case they are hopefully 100% paid for by the company.