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Are there any income limits for HSA plans? Is it legal to carry more than one HSA plan?

I am being forced to change from my preferred plan. The new array of acyronyms is annoying.
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Are there any income limits for HSA plans? Is it legal to carry more than one HSA plan?
It's a HSA account (Health Savings Account)
and a HDHP plan (High Deductible Health Plan)

No income limits for contributing to an HSA.
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It's a HSA account (Health Savings Account)
and a HDHP plan (High Deductible Health Plan)

No income limits for contributing to an HSA.


Okay, I can look at the HSA plans that are offered.

The title of the plans include HSA, and are referred to as "HSA compatible". HDHP is likely the correct term, but isn't being used in the documentation.
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"HSA compatible" is probably the characterization preferred by providers marketing HDHP's, because the term "high deductible" scares people off ;-).

But to answer the OP's question....you can have multiple HSA accounts but your total combined annual contributions cannot exceed the contribution limits.

MT
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But to answer the OP's question....you can have multiple HSA accounts but your total combined annual contributions cannot exceed the contribution limits.

MT


That wasn't exactly the question.

My husband is in the middle of treatment, and is losing Cobra. I have to cover him under a plan that is not my preferred health coverage.

I have had Kaiser for decades, and don't want to change. It is cheaper for me to cover my husband at work, and for me to buy individual coverage.

Is there a conflict with being covered by two high deductible health plans?
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vkg -

Ah. I did get confused by the terms you used. Well, this does not seem like a tax strategy question then...and you may want to take this to the insurance board for input.

I'll attempt a response anyway. Based on my experience, people can be covered by two health insurance plans simultaneously (one is usually designated as the primary and the other secondary). This is often the case with kids that may be covered under two plans (i.e., under each parents plan when both parents work and have seperate family coverage with each employer). So, it is possible to have an individual covered by multiple helath insurance plans. Given that situation, I don't see that it would make a difference whether the two plans are two HDHP/HSA-compatible plans or some other type. Don't know how double coverage would work with an HMO style account, but the insurance carrier should be able to address those questions for you.

I'm not entirely sure that this addresses your question as I'm not sure what you meant with this statement: It is cheaper for me to cover my husband at work, and for me to buy individual coverage.

Are you suggesting an individual HDHP for DH through your work's provider, and a different HDHP coverage for you (purchased independently and not through your employer's provider)? If your work will let you establish coverage for DH with out requiring that you be insured under a family plan (or as the primary), then two separate policies should not be a problem. However, if what you intend is to establish two plans for yourself (one as a family plan with DH and a 2nd individual plan for you), there may be some issues with the providers accepting this and you could run into trouble when they have to establish the primary and secondary provider. I would think that approach would be overly costly as well.

I hope this helps...I'm still not sure I understand the question.

MT
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I'm not entirely sure that this addresses your question as I'm not sure what you meant with this statement: It is cheaper for me to cover my husband at work, and for me to buy individual coverage.

I am adding my husband as a dependent and changing the coverage so that his treatment will not be interrupted.

However, if what you intend is to establish two plans for yourself (one as a family plan with DH and a 2nd individual plan for you), there may be some issues with the providers accepting this and you could run into trouble when they have to establish the primary and secondary provider. I would think that approach would be overly costly as well.

Since the individual policy for me would be an HMO, primary and secondary is not an issue. It is less costly than obtaining an individual policy for my husband.
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Since the individual policy for me would be an HMO, primary and secondary is not an issue.
Is that based on actual discussion with Kaiser and the HDHP provider?
Or based on what you *think* should be the case?
Like many bureaucracies, what you think makes sense and what the rules are can be quite different.

I think what you're looking at is through your company getting a family-plan HDHP for yourself and DH, and Kaiser for just yourself.
My *guess* is that DH will just have single coverage, but you will have primary and secondary insurance. It'll probably be advantageous to you to file your expenses against the HDHP as well as your HMO coverage. It won't help you directly with your own healthcare costs, BUT it'll probably get you through that deductible faster, which will lower your DH's overall costs.

BTW: I strongly suggest doing good bookkeeping - ex. spreadsheet with what you've spent. Double-coverage can sometimes be a PITA for getting the Doc/hospital/clinic/lab/whatever to process it right (my DW had HDHP through me, and her own coverage from work)

BTW: if *YOU* are covered by an HMO plan, *YOU* will not be eligible to contribute to an HSA account. however, your DH who is only covered by the HDHP probably will be able to open and contribute to an HSA.
(So don't open the HSA account portion through your work and contribute to it from your paycheck if you're getting coverage from somewhere else)

Good luck.
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BTW: if *YOU* are covered by an HMO plan, *YOU* will not be eligible to contribute to an HSA account. however, your DH who is only covered by the HDHP probably will be able to open and contribute to an HSA.
(So don't open the HSA account portion through your work and contribute to it from your paycheck if you're getting coverage from somewhere else)


Kaiser also has an HSA compatible plan, which is the reason for my original question.

Is that based on actual discussion with Kaiser and the HDHP provider?

The Blue Cross coverage through work will not coordinate benefits. Any service provided through Kaiser will not be covered. If I planned on using Blue Cross insurance, I would need to drop the Kaiser insurance.

If medical billing isn't enough of a headache, health insurance coverage has become far more complicated.
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vkg -

I understand now what you are trying to do with dual medical coverage plans. The arrangement that you describe would have you as the "primary" insured under each plan (i.e., the Blue Cross family (or self+spouse) plan through your work that includes DH, and the Kaiser individual plan purchased separately for only you).

The benefits coordination problem you identified is the point I mentioned earlier (primary/secondary). AFAIK, there is no restriction from owning two (or more) policies, but the carriers are under no obligation to coordinate the claims between the two. A carrier/provider can always assert that a claim was paid by the other, and the burden of proof ends up on you. Technically, if both policies are under your name as primary/insured (owner of the policy) they are both obligated to cover qualified claims, but there is usually a clause in the contract that states that they are not obligated to pay on claims that are otherwise covered under another carrier/policy (this avoids double-dipping so that the insured does not come out cash positive). If either of the carriers suggest that dual coverage is a problem (and thus may drop you), you might ask BC if there is a form that you can sign acknowledging that you voluntarily waive BC as your "primary" and subordinate claims to Kaiser. This would eliminate the conflict; BC would still be obligated for seconary coverage not otherwise paid by Kaiser. Because Kaiser requires use of their own network providers, there likely would not be much overlap between costs that BC would pick-up. But since your goal is not to address your coverage through BC, but rather your DH, that should not matter (to you). Again, folks on the insurance board may be able to better address the legalities of coordinating between dual providers. It may be easiest to not expect any coordination between providers and don't submit any claims for your care to BC except when you use non-Kaiser providers.

Since this is a tax board...tax considerations. As foo1bar points out, contributions to an HSA account would not be allowed for you if either of your plans is a non-HDHP (HSA compatible) plan. If both plans are HDHP/HSA compatible, then you could choose to contribute to an HSA account and take the tax deduction (as a gross income adjustment) for qualified contributions.

If your BC premium is paid through your employer (payroll deduction), then you should already be getting the tax advantage through use of pre-tax dollars. Unless your are self-employed, your Kaiser premium payments are not directly deductible as adjusted gross income, but they *MAY* be tax deductible if you itemize and include those premium payments under your medical expenses.

If you have a residual after-tax dollars payment for DH's portion of the BC policy, you *MAY* be able to pay those premiums from funds in the HSA account (if he meets the requirements). Under this scenario, you would establish the HSA account and make contributions (claiming the tax deduction) and then reimburse yourself for HIS porton of the premiums (thus effectively paying for his share of the premiums in pre-tax dollars). This is a little convuluted....others may weigh in as to the tax strategy credibility of it....but at least it would help reduce the financial burden of carrying two policies if you could do this.

MT
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If either of the carriers suggest that dual coverage is a problem (and thus may drop you), you might ask BC if there is a form that you can sign acknowledging that you voluntarily waive BC as your "primary" and subordinate claims to Kaiser. This would eliminate the conflict; BC would still be obligated for seconary coverage not otherwise paid by Kaiser.

The original question is answered.

I will not lie to Blue Cross, but I expect nothing from them as long as I have Kaiser. It isn't that they will "drop" me. Its that they don't coordinate benefits. They are not responsible for secondary coverage. If in the unlikely event that I want to seek treatment outside of Kaiser, I would drop Kaiser.

I was covered under Blue Cross by my husband for a number of years. Kaiser has never asked about any other individual coverage or if an injury was work or accident (where a 3rd party might be liable). Blue Cross has always been extremely aggressive about dual coverage. They have also been aggressive about any treatment that Might be an injury that they could seek reinbursement from a 3rd party.
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I will not lie to Blue Cross, but I expect nothing from them as long as I have Kaiser. It isn't that they will "drop" me. Its that they don't coordinate benefits. They are not responsible for secondary coverage.
Depending on your birthday, it's possible that Blue Cross (Anthem if you're in my neck of the woods) is actually your primary, and Kaiser is secondary.

If you haven't talked to someone from Kaiser and someone from Blue Cross to confirm that things will work as you expect, IMO you REALLY should do so.

And I'd make sure the Kaiser person is someone that's familiar with the plan you're planning to buy - not just knows your current employer provided plan because they could be different.

Maybe it'll cost you 2 hours on hold (at least you can still do email etc), but it'll be better to know you're going to be OK than finding out you've got a bunch of paperwork and many more calls to them in July next year.
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Depending on your birthday, it's possible that Blue Cross (Anthem if you're in my neck of the woods) is actually your primary, and Kaiser is secondary.

No, that only applies for co-insurance on dependents. My birthdate doesn't change. I will be the owner of both policies. My husband is the dependent on one of the policies.
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