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FEHB 2011 Open Season
- Thread starter XL-entLady
- Start date
responding to fireWeatherMet's "Well I don't know, VLM " ...
You don't understand how FEHB hi deductible health plans work, as you obviously have never read the Aetna or GEHA HDHP brochures. For example you said:
I thought I was healthy as a buck back when I was in my early 20s. However, an unexpected shoulder injury would have cost me $15,000. A 5,000-10,000 deductible would have runed me at that time...none of my credit cards even had that limit.
With Aetna HDHP, your cost for this injury, assuming that 15K is the 'negotiated' rate for Aetna ( meaning original doctor bill about 25K ):
You would pay the first 1500 ( with self coverage ) and then Aetna would have paid 90%: total bill 1500 + 1350 = 2850. Your tax savings if you had put the annual 3000 in HSA: (deducted pre-tax, no SS, no medicare, no tax, so about 38% saving) $1100. So net cost: 1750. would than have 'runed' you ? I have had two bad years like this since I started HDHP four years ago, and I still have a nice balance in my HSA account.
(my tax savings have more than paid for all of my bills ).
The other unintended consequence of hi-deductible plans that hurts our society as a whole...people put off routine visits or checkups becasue those hi deduction plans are entirely out of pocket for stuff like that.
This is completely wrong. All FEHB HDHPs have 100% free preventative care, even before the new health care bill which requires all plans to have this. So I get complete physical exam and all associated tests for free with $0 out of pocket expense. Women get that plus ob/gyn exam.
They encourage people to not go to the doctor at all, or put them in a position to go bankrupt if they have 2 bad years in a row. This happens to almost a million Americans a year with insurance.
Wrong again. My Aetna HDHP has a catastrophic maximum of $4000/yr.
And if you contribute to your HSA and therefore use HSA funds to pay for your costs, that 4K only cost you 2480 after tax savings. So you could have a multi million health catastrophe, and really only have to pay about 2500 out of pocket! And for most HDHP regulars, they have considerably more than that saved in their HSA.
Would this bankrupt anyone? As I said above I have had two bad years, but still have paid all of my out of pocket costs with tax savings.
So I suggest that you read the HDHP brochures, to make an intelligent decision on which fehb plans are best.
You don't understand how FEHB hi deductible health plans work, as you obviously have never read the Aetna or GEHA HDHP brochures. For example you said:
I thought I was healthy as a buck back when I was in my early 20s. However, an unexpected shoulder injury would have cost me $15,000. A 5,000-10,000 deductible would have runed me at that time...none of my credit cards even had that limit.
With Aetna HDHP, your cost for this injury, assuming that 15K is the 'negotiated' rate for Aetna ( meaning original doctor bill about 25K ):
You would pay the first 1500 ( with self coverage ) and then Aetna would have paid 90%: total bill 1500 + 1350 = 2850. Your tax savings if you had put the annual 3000 in HSA: (deducted pre-tax, no SS, no medicare, no tax, so about 38% saving) $1100. So net cost: 1750. would than have 'runed' you ? I have had two bad years like this since I started HDHP four years ago, and I still have a nice balance in my HSA account.
(my tax savings have more than paid for all of my bills ).
The other unintended consequence of hi-deductible plans that hurts our society as a whole...people put off routine visits or checkups becasue those hi deduction plans are entirely out of pocket for stuff like that.
This is completely wrong. All FEHB HDHPs have 100% free preventative care, even before the new health care bill which requires all plans to have this. So I get complete physical exam and all associated tests for free with $0 out of pocket expense. Women get that plus ob/gyn exam.
They encourage people to not go to the doctor at all, or put them in a position to go bankrupt if they have 2 bad years in a row. This happens to almost a million Americans a year with insurance.
Wrong again. My Aetna HDHP has a catastrophic maximum of $4000/yr.
And if you contribute to your HSA and therefore use HSA funds to pay for your costs, that 4K only cost you 2480 after tax savings. So you could have a multi million health catastrophe, and really only have to pay about 2500 out of pocket! And for most HDHP regulars, they have considerably more than that saved in their HSA.
Would this bankrupt anyone? As I said above I have had two bad years, but still have paid all of my out of pocket costs with tax savings.
So I suggest that you read the HDHP brochures, to make an intelligent decision on which fehb plans are best.
I disagree as appears you misunderstand regarding to HDHP that you can save a lot of $ on your health insurance (& from IRS) as the health plans contribution up to 85.96% ($1,800 - $2,500) for family and 95.35% ($500 - $1,200) for single depend on the plan you choose or the plan that is available for you. Beside the plans contribution – you may contribute up to $5,150 for family and $2,500 for single to the accounts before tax or tax free, beside the TSP that you are not pay tax. The combine of the plans contribution and your contribution can not exceed the amounts of $6,150 for family and $3,050 for single in 2010. The $ in the account is for you to use for anything related to medical expense and keep even after you change to different health plan such as HMO. By the time of retirement and need the $ for what ever reason for none medical purpose - just withdraw and pay tax as your income for that amounts without penalty.
The $ in the accounts you can invest in JP Morgan Mutual Fund when your account has exceed $2K. As this is HIGH DEDUCTIBLE – You must be able to save up for the first two years to cover the deductible as for in-network the deductible the amounts are $2,500 to $6,000 for family and $1,150 to $3,000 for single and expect more for out of network (Use the balance in HSA to cover this).
For those that know OR expecting something such as pregnant or major surgery - by the end of the year change to what ever plans you like, then switch back to HDHP later year to save extra $ from deductible on your HSA.
As I paid $38.71 per month for family plan (Aetna) in 2010 after plan contribution of $125 to my HSA. This is my second year with HDHP and my current balance is $8.3K as I agree that one can predict if they are going to get into a serious health issued that what is your HSA balance come into to play as I withdrew $4K so far for this year to cover for Doctor, Medicine (cost the same as your regular PPO) included one at emergency room for my family and after you max out your family (or individual) deductible for the year then the insurance come into to play. If you have PPO with 5-10% deductible for major expense then this plan is far better as it will cost approx. $4.8K for BlueCross BlueShield PPO each year even if you are healthy or paid only $464.52 for entire year. Why not take advance of this of tax free contribute to to cap HSA. The hard part is the first two year out of pocket cost, but if you keep track of your family health record to see how much you spend then you can do it. By the way my kids have asthma that need medicinces (I used my HSA to pay for medicines instead out of pocket as it used to be), then if I can do it as I save $1,302 (28% in federal tax) for my contribution extra $4,650 into my HSA - I'm not see someone want to ignore the benefit if you and/or your family are healthy enroll into this. You can switch back and forth as any other plans when the open season. Don't be mistake as you pay less HDHP cover less as the gov't pay the same amounts for you and your family as any other plan. The HDHP will cover the same thing as any other plans if an unexpected shoulder injury cost $15,000 as mentioned, then you pay more up front for deductible in netwok cap at $1.5K (single) or $3K (family) and the rest will be paid by the insurance (Aetna as example).
Here is the website for additional info: http://www.opm.gov/insure/health/hsa/hd ... tion.asp#1
The $ in the accounts you can invest in JP Morgan Mutual Fund when your account has exceed $2K. As this is HIGH DEDUCTIBLE – You must be able to save up for the first two years to cover the deductible as for in-network the deductible the amounts are $2,500 to $6,000 for family and $1,150 to $3,000 for single and expect more for out of network (Use the balance in HSA to cover this).
For those that know OR expecting something such as pregnant or major surgery - by the end of the year change to what ever plans you like, then switch back to HDHP later year to save extra $ from deductible on your HSA.
As I paid $38.71 per month for family plan (Aetna) in 2010 after plan contribution of $125 to my HSA. This is my second year with HDHP and my current balance is $8.3K as I agree that one can predict if they are going to get into a serious health issued that what is your HSA balance come into to play as I withdrew $4K so far for this year to cover for Doctor, Medicine (cost the same as your regular PPO) included one at emergency room for my family and after you max out your family (or individual) deductible for the year then the insurance come into to play. If you have PPO with 5-10% deductible for major expense then this plan is far better as it will cost approx. $4.8K for BlueCross BlueShield PPO each year even if you are healthy or paid only $464.52 for entire year. Why not take advance of this of tax free contribute to to cap HSA. The hard part is the first two year out of pocket cost, but if you keep track of your family health record to see how much you spend then you can do it. By the way my kids have asthma that need medicinces (I used my HSA to pay for medicines instead out of pocket as it used to be), then if I can do it as I save $1,302 (28% in federal tax) for my contribution extra $4,650 into my HSA - I'm not see someone want to ignore the benefit if you and/or your family are healthy enroll into this. You can switch back and forth as any other plans when the open season. Don't be mistake as you pay less HDHP cover less as the gov't pay the same amounts for you and your family as any other plan. The HDHP will cover the same thing as any other plans if an unexpected shoulder injury cost $15,000 as mentioned, then you pay more up front for deductible in netwok cap at $1.5K (single) or $3K (family) and the rest will be paid by the insurance (Aetna as example).
Here is the website for additional info: http://www.opm.gov/insure/health/hsa/hd ... tion.asp#1
Viva_La_Migra
Well-known member
I agree that it would be better if everyone purchased a comprehensive insurance plan that would cover them in the event of a catastrophic illness or injury. That said, I don't believe the government should force anyone to purchase it if they don't want to or can't afford to. Freedom means you can choose to have or not have insurance. With freedom comes the responsibility to take care of yourself, or face the consequences. Too many people want to be cared for from the cradle to the grave, and don't want to take responsibility for themselves.
Viva_La_Migra
Well-known member
Why would you want that? What's wrong with people choosing for themselves what plan is best for them?
XL-entLady
Well-known member
"...Open season -- the time when federal employees can change their FEHBP enrollments -- runs from the beginning of the second full work week of November to the end of the second full work week of December. OPM proposed switching it to run from Nov. 1 to Nov. 30.
"This will simplify the annual announcement of the time period for open season and allow agencies and employees to better plan for the enrollment opportunity since they will know well in advance when it will occur each year," the agency said in the notice.
In addition, OPM suggested changes to the kinds of plans health care companies can offer through FEHBP. Right now, insurers can offer two regular options and one high-deductible plan, in which enrollees pay most of their costs out of pocket in exchange for low premiums. OPM proposed allowing companies to choose between offering two plans and a high-deductible option, or three regular plans."
http://www.govexec.com/story_page.cfm?articleid=45075&dcn=todaysnews
OPM notice is found at:
http://edocket.access.gpo.gov/2010/pdf/2010-8957.pdf
"This will simplify the annual announcement of the time period for open season and allow agencies and employees to better plan for the enrollment opportunity since they will know well in advance when it will occur each year," the agency said in the notice.
In addition, OPM suggested changes to the kinds of plans health care companies can offer through FEHBP. Right now, insurers can offer two regular options and one high-deductible plan, in which enrollees pay most of their costs out of pocket in exchange for low premiums. OPM proposed allowing companies to choose between offering two plans and a high-deductible option, or three regular plans."
http://www.govexec.com/story_page.cfm?articleid=45075&dcn=todaysnews
OPM notice is found at:
http://edocket.access.gpo.gov/2010/pdf/2010-8957.pdf
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