MSAs and Obamacare

[manualman]

Does anybody know how the Obamacare law is going to affect high deductible helath insurance plans that allow ‘medical savings accounts?’

My employer just started offering this plan which essentially provides little to no benefits below the catastrophic level, but allows you to place pre-tax money in a separate medical savings account that can accumulate over the years and is forever just yours. You still get the benefit of the low rates the insurance company negotiates for care, but are responsible for 100% of the actual cost of care up to a fairly high deductable limit. There is risk, especially in the first few years of a major financial hit, but after a few years of good health building up savings it becomes hard to wind up upside down short of a long term illness.

This approach is looking good to me if it allows a de facto way out of paying premiums that get used for abortion pills and contraception. But will it still be allowed under Obamacare?

 

[PaulinVA]

This approach is looking good to me if it allows a de facto way out of paying premiums that get used for abortion pills and contraception. But will it still be allowed under Obamacare?

The current debate is over the minimum coverage for ALL plans. A high deductible plan with an HSA or HRA would be less desirable because the mandatory coverage would increase the premium.

If the law allowed for a Consumer Driven Health Plan without the mandatory coverage, the Bishops would be all over it.

 

[TheRealJuliane]

We have that sort of plan. I have heard that it will not be allowed under Obamacare. Your rates will be a lot cheaper than ours, since we had to get the insurance ourselves and not through a corporation (hubby is his own boss). We do indeed pay for everything ourselves, but it’s set up like a forced savings account, so when we need to, we can reimburse ourselves for our expenses.

Since the effects of this law haven’t all come into play, I’m not sure when the HSA/MSA option will be lost, or how it will affect those of us who do have the plan now. Maybe they will remove the tax exemption for the savings accounts. It’s anyone’s guess right now.

Your benefits adviser may have a clue.