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Put as simply as possible: a deductible (whether for medical insurance, home insurance, auto insurance, etc.) is that portion of a claimed expense the insurer will not pay, and is therefore the portion you are expected to pay out of your own "pocket". If your doctor charges you $250 for a visit and you have a $100 deductible, you claim the $250 expense, of ...


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Broadly, it means that you'll be responsible for the first $3,000 of medical expenses that you incur over the course of the year before insurance kicks in. There may be a co-pay as well where you're responsible for some fraction of the bill once you've met your deductible up to an out-of-pocket maximum. Realistically, your plan very likely covers certain ...


3

There are a number of different arrangements, but at a high level the deductible is the amount you must pay before insurance will start paying for medical expenses. Commonly there are some things that are covered to some extent before you hit your deductible, for example I can get a physical every year without paying, but otherwise I pay for everything ...


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HDHPs basically exist for people like you describe yourself: people who don't really use healthcare beyond basic vaccinations/well visits, and so really are using insurance for its nominal purpose - insuring against significant expenses. If you are able to handle the possibility of a major event taking your full maximum out-of-pocket (you say $5800), then ...


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If the plans are otherwise identical it would seem that the HDHP is superior, as the employer HSA contribution will cover all of your out of pocket costs up to the deductible and then some. However note there are often other differences such as the % coinsurance and copays, as well as max out of pockets between these plans to it might complicate things. ...


4

Your sample scenario is correct, but on such a short timeline the advantage is likely not very significant. If instead of 2023 you waited until 2050 to request reimbursement, you could have significantly more than your initial $10k contributions depending on investment performance. The great benefit of an HSA is that it gets pre-tax contributions, tax-free ...


1

You can do a rollover or even better a trustee-to-trustee transfer. In a rollover the check goes through you, and you have 60 days and you can only do one per year. Contact the new company for help. According to the IRS: Rollover Contributions Generally, a rollover is a tax-free distribution to the taxpayer of cash or other assets from one HSA ...


1

Not sure why you changed the numbers in the question, I will be using the original numbers since those are more realistic: X works for company XXX that offers $600 for Employee and $1,200 for Family. Y works for company YYY that offers $900 for Employee and $1,500 for Family. In order to get the family contribution from the employer, you would ...


3

Your plan is pretty sensible for a young, married couple without children or known elevated health risks, and you've clearly thought about most of the explicit angles. The main issue is more related to what health insurance is, and what you're actually buying when you take out a policy. The wording in the question makes it appear that you are thinking of a ...


7

Last time I ran the numbers on insurance in my state you were almost certainly better off taking the highest deductible available. It was almost impossible to find an amount of medical bills where this wasn't your best choice. Obviously, this means you're taking a higher risk the first year as you might get a big bill before seeing the savings. Note that ...


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Advantages Contributions lower your tax liability. If the HSA is through your employer's cafeteria plan, pretax payroll deferral lowers not just your income tax but your social security and medicare tax as well. It's your money. Unlike FSA and HRA, you aren't required to "use it or lose it". Any unused balance remains from one year to the next. ...


6

Generally, you are correct. If you and your family are relatively healthy, a HDHP + HSA can be a great thing and will often leave you with more money in the long run. In the case of a catastrophic medical emergency, HDHPs have a "max out of pocket" amount, usually given in individual + family numbers. For example, your max out of pocket might be $7,000 ...


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I think you have the main points covered; an HDHP is a tradeoff between lower premiums (fixed) and higher deductibles (variable). On think to keep in mind is to make sure you have enough to cover the higher expenses until your HSA is funded. My HSA allows you to spend money even before its funded, so long as you eventually make up the difference. If yours ...


5

Contribution limits are pro-rated if you aren't eligible for the entire year. Suppose you lose your HSA eligibility in May of next year. Your HSA contribution limit would be 5/12 of your contribution limit for 2020. If you have already contributed the full amount you can reverse the excess contribution by filling out a form with your HSA administrator. Note ...


4

Even if you are allowed to contribute to your existing HSA, you will receive the best tax benefit by making contributions through a payroll deduction. The IRS says that contributions to an HSA can be from the employer, from the employee through payroll deduction, or from a contribution directly to the account. Your employer is unlikely to make an HSA ...


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From the IRS: Rules for married people. If either spouse has family HDHP coverage, both spouses are treated as having family HDHP coverage. ... [T]he contribution limit is split equally between the spouses unless you agree on a different division. So for 2019, you and your wife have a combined HSA limit of $7,000. You can decide to split that however you ...


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