2017 Bronze 60 HSA: The Sister Plan with Tax Benefits
We like to refer to the Bronze 60 HSA as the “Sister Plan” to the standard Bronze 60 plan, but with tax benefits. The Bronze 60 HSA can oftentimes be a few dollars cheaper than the standard Bronze 60. HSA is an abbreviation for a specific bank account called a Health Savings Account. With this health plan you have the option of setting up a separate Health Savings Account with a bank of your choice, and saving money designated for medical expenses. This money is tax deductible at the Federal level. For more details on how this works, review this HSA information from the IRS.
Keep in mind that the 2017 Bronze 60 HSA offers slightly different benefits than its sister plan, the Bronze 60. Here are some brief highlights:
- This plan includes free preventative care like annual physicals, well-woman checkups, well-baby checkups and basic vision and dental services for children under the age of 19.
The Bronze 60 HSA has a $4800 individual deductible and a $9,600 family deductible. This means that you will be responsible for all services at full charge until your deductible is met.
After your deductible is paid the insurance company will pay 60% of the cost for covered services while you pay 40% until you reach your annual payout cap of $6550 per individual or $13,100 for a family. The cap does include the medical and drug deductible. While this seems like a lot of money, it can protect you from a debt you can’t afford to pay or bankruptcy.
Is the 2017 Bronze 60 HSA Plan Right for Me?
While the Bronze 60 HSA is not right for everyone, it can be the perfect fit for some. It may be a fit for you if…
- You want the tax benefits this type of plan offers.
- You have extra money to contribute to an HSA. Click here to see the 2015 annual contribution limits.
- You like the idea of saving money now and paying more later if medical needs arise.
- You need a plan compatible with a Health Savings Account you want to continue using and contributing to.
- Your financial advisor has recommended this type of plan for you.
- You are comfortable with a high deductible plan and mainly want protection for that unexpected event.
Bronze 60 vs. Bronze 60 HSA
Unless you, an employer or family member plans on contributing money into a Health Savings Account, then it makes little sense to go with a Bronze 60 HSA in comparison to the standard Bronze 60. Here is a quick comparison between the two.
- The premium price is usually very similar.
The deductible is waived for the first 3 office visits, and lab work is not are only offered on the Bronze 60 plan
The Bronze 60 plan has a $500/$1,000 separate drug deductible. For the Bronze 60 HSA the drug deductible is included in the medical deductible which is $4,800/$9,600.
After the deductible is met, the Bronze 60 offers benefits for a set dollar amount (copay) and the Bronze 60 HSA offers benefits at 40%.
Only when the advantages of having a Health Savings Account linked to your insurance plan outweigh the above benefits, do we advise a Bronze 60 HSA plan.
A Little More to Think About
You are not required to open a Health Savings Account with this plan. You can always purchase the plan and then open the Health Saving Account with the bank when you are ready, or not open a bank account at all. The money in your HSA bank account cannot be used to pay your health plan’s monthly premium. It can only be used to pay for qualified medical and dental expenses. To find out which medical expenses are qualified click here. Any money you save is yours to keep and rolls over from year to year. We recommend checking with your bank or financial advisor for more information.