Actuarial Outpost
 
Go Back   Actuarial Outpost > Cyberchat > Non-Actuarial Topics
FlashChat Actuarial Discussion Preliminary Exams CAS/SOA Exams Cyberchat Around the World Suggestions



Reply
 
Thread Tools Search this Thread Display Modes
  #1  
Old 09-23-2018, 10:16 AM
Latitude30 Latitude30 is offline
Member
SOA
 
Join Date: Feb 2012
Posts: 2,376
Default HSA Plan when you go below 0 do you use regular savings

To pay medical bills in excess of HSA balance?

Or do you negotiate payment plans by provider against future HSA contributions?
Reply With Quote
  #2  
Old 09-23-2018, 12:23 PM
Klaymen's Avatar
Klaymen Klaymen is offline
Member
CAS
 
Join Date: Oct 2001
Studying for AINS 21 & 22
Posts: 19,331
Default

If you can go below zero, why contribute in the first place?
__________________


Reply With Quote
  #3  
Old 09-23-2018, 12:36 PM
crabber crabber is offline
Member
CAS
 
Join Date: Nov 2008
Posts: 10,360
Default

My plan's out of pocket max is slightly less than the maximum allowable HSA contribution, so its never been an issue.
Reply With Quote
  #4  
Old 09-23-2018, 02:02 PM
SamTheEagle's Avatar
SamTheEagle SamTheEagle is offline
Member
SOA
 
Join Date: Aug 2005
Posts: 54,129
Default

You should pay all of your bills out of pocket and leave the money in your HSA untouched, imo.
Reply With Quote
  #5  
Old 09-23-2018, 03:33 PM
crabber crabber is offline
Member
CAS
 
Join Date: Nov 2008
Posts: 10,360
Default

Quote:
Originally Posted by SamTheEagle View Post
You should pay all of your bills out of pocket and leave the money in your HSA untouched, imo.
Is this a serious answer? Can you walk us through the advantage?
Reply With Quote
  #6  
Old 09-23-2018, 03:59 PM
vjvj's Avatar
vjvj vjvj is offline
Note Contributor
Non-Actuary
 
Join Date: Nov 2005
Location: IL
Studying for MFE
Posts: 7,348
Default

It's tax defered savings. You can spend it on anything without penalty once you reach 65. You pay tax on it when you spend it.
Reply With Quote
  #7  
Old 09-23-2018, 03:59 PM
asymp_normal asymp_normal is offline
Member
CAS
 
Join Date: Oct 2003
Location: Out, standing in my field.
Posts: 1,089
Default

Quote:
Originally Posted by crabber View Post
Is this a serious answer? Can you walk us through the advantage?
HSA is a tax-advantaged account. Leave the money in there to grow tax-free, spend money that would otherwise go into taxable accounts. Provided of course that such funds are available. Use the HSA when you are old and will undoubtably have health or long term care expenses.

I guess that is what he had in mind.
Reply With Quote
  #8  
Old 09-23-2018, 04:07 PM
campbell's Avatar
campbell campbell is offline
Mary Pat Campbell
SOA AAA
 
Join Date: Nov 2003
Location: NY
Studying for duolingo and coursera
Favorite beer: Murphy's Irish Stout
Posts: 84,617
Blog Entries: 6
Default

And some of us go over the OOP max each year because one person in the family is being treated for cancer.

Might as well draw down the account. Esp if one hasn't already maxed out the retirement account deferral amounts.
__________________
It's STUMP

LinkedIn Profile
Reply With Quote
  #9  
Old 09-23-2018, 05:09 PM
Latitude30 Latitude30 is offline
Member
SOA
 
Join Date: Feb 2012
Posts: 2,376
Default

Quote:
Originally Posted by Klaymen View Post
If you can go below zero, why contribute in the first place?
So you get the employer match

so you can take advantage of tax savings

So you have some sense of what personal money is at risk in an unexpected emergency illness

So you can focus other money on other financial goals besides “what if I get sick” such as retirement savings, 529 plans, downpayment on Home, personal investments, money for childcare such as diapers and clothes and games/toys daycare or preschool, needed house appliances, property wear and tear, enjoyment money

Last edited by Latitude30; 09-23-2018 at 05:13 PM..
Reply With Quote
  #10  
Old 09-23-2018, 09:29 PM
M.Savage M.Savage is offline
Member
Non-Actuary
 
Join Date: Jul 2017
Location: San Francisco
Posts: 422
Default

Quote:
Originally Posted by Latitude30 View Post
To pay medical bills in excess of HSA balance?

Or do you negotiate payment plans by provider against future HSA contributions?
Providers aren't interested in you're particular financial situation or how you fund your insurance needs. They are not going to front you medical services in exchange for an "I owe you" based on expected future HSA contributions. They may set up a payment arrangement with you, but that will be irrespective of the presence of an HSA.

Last edited by M.Savage; 09-23-2018 at 09:52 PM..
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT -4. The time now is 09:55 AM.


Powered by vBulletin®
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
*PLEASE NOTE: Posts are not checked for accuracy, and do not
represent the views of the Actuarial Outpost or its sponsors.
Page generated in 0.32485 seconds with 11 queries