Temp Job After Open Enrollment

[lizzie18]

Because of Covid cancelling a prior job offer, I am currently working for an IT staffing company for 3 different firms. It totals to over 40 hrs/week so I am eligible for their benefits, however I currently have a MNsure plan because was slightly cheaper at the time.

Contracting company plan:

$52 weekly for a $5,000 deductible BlueCard EPO with HSA (self only), then 20% coinsurance or 40/visit copays through $6,500. When I first got the job, the new hire form quoted this as $90/week. Not sure what happened.

They also have a $42 weekly outpatient-only plan which they push alongside the optional Fixed Indemnity offerings ($10,000 accident, $25,000 (not really) Hospital, $50,000 Critical Illness). Those are, in increasing cost, $8-$27 per week. Not sure if you can have those FIs with an HSA.

CAVEAT: The above is for their 2021 open enrollment. The contract I have with them might expire December 30th. MNSure open enrollment ends mid-December.

Current MNsure:

Individual Silver PPO for $245/month (no subsidy). First 3 visits at $50 each then 25% coinsurance (overall) after $3,000 deductible, $7,900 OOP. Includes level 1 and 2 Rx at 5 visits per year. Those range from $118-150/month (unsubsidized) with only the 3 copay visits and Tier 1+Insulin copays, both state law, before you hit the ~$8k deductibles.

Renewing current plan would be $255/month, or $215/month for its Bronze ($6,200 D, $8,900 OOP) sibling. Not much changes this year except the network doubles in size and the copay visits are $0. HSA versions, with the same deductibles and coinsurances, but $6,900 OOPs and no copays, are $204 or $230/month.

Wondering if it would be better to switch to a Bronze MNsure HSA even though I wouldn't get pre-tax contributions. I haven't come close to a Silver Deductible in nearly 8 years, and might not even be able to use the work one. Also unfamiliar with how HSA tax savings and funding works if you take out one yourself.

 

[munyaku]

@lizzie18

They also have a $42 weekly outpatient-only plan which they push alongside the optional Fixed Indemnity offerings ($10,000 accident, $25,000 (not really) Hospital, $50,000 Critical Illness). Those are, in increasing cost, $8-$27 per week. Not sure if you can have those FIs with an HSA.

That doesn't sound aca compliant and doesn't sound like real insurance anyway. You can't have an HSA unless you're on a qualifying HDHP. Not all HDHP are HSA eligible either.

If you have employer coverage you don't qualify for the APTC. Gain or loss of ACA compliant coverage should trigger an SEP.

Figure out whatever has the best cost option for your needs.

 

[lizzie18]

@munyaku That plan isn't, only the HDHP is. The benefits packet notes this as:
Since the High Deductible Comprehensive Medical Plan is affordable under the Affordable Care Act (ACA), you will not
qualify for a tax credit or subsidy if you purchase health insurance through Federal or State run exchanges.

After 3 full pages, and an extremely confusing graphic, shilling how the FI plans and that $42 one allow you to save on a "value" plan. That page also shows the HDHP COBRA pricing, $400/month, which doesn't really answer how it was $90/month before vs $52/month now.

In terms of premiums. The hypothetical $52*52 weeks for the employer's isn't really that different from MNsure. If I were to opt for a MNsure Bronze HSA instead of the copay one, would their be any benefit tax-wise?

Last year I spent roughly $1100 on the 3 visit copays, two full price visits, and a Contrast CT. Since HSA's don't have copays, making any visit $180 (NP)-380 (Spec), I would probably plan for something like that again.

 

[munyaku]

@lizzie18 Whoops I just realized you were OP hahaha, let me take a look at this on a computer later. Too hard to do math on mobile lol

 

[munyaku]

@lizzie18 So let's look into this. I'm assuming your MNSure plan is not subsidized? That's what the state calls their marketplace plans right?

Regarding the $90 vs $52, maybe they expanded their benefits? Or something with the cadence of paychecks - monthly, biweekly, or semimonthly? Just a guess.

If I were to opt for a MNsure Bronze HSA instead of the copay one, would their be any benefit tax-wise?

The tax benefits of an HSA from a marketplace plan are less than that of an employer plan. When you make employer-driven HSA contributions, you get pre-FICA and pre-income tax. When you hold an independent HSA, you can only make post-tax contributions and then take the income tax deduction on your taxes next year, but there is no way to recover the 7.65% FICA savings from payroll contributions.

You effectively save your marginal tax bracket worth of what you contribute - so if you're in the 22% bracket and you contribute the full $3500, that's $770 in taxes you've saved.

Contracting company plan: $52 weekly, $6500 OOP.

Total cost on this would be $2704 + $6500 = $9204

the optional Fixed Indemnity offerings ($10,000 accident, $25,000 (not really) Hospital, $50,000 Critical Illness). Those are, in increasing cost, $8-$27 per week. Not sure if you can have those FIs with an HSA.

Yes you can have a fixed indemnity plan and retain an HSA - that's not considered disqualifying other coverage.

You can still be an eligible individual even if your spouse has non-HDHP coverage, provided you aren’t covered by that plan.
You can have additional insurance that provides benefits only for the following items:

• Liabilities incurred under workers’ compensation laws, tort liabilities, or liabilities related to ownership or use of property.
• A specific disease or illness.
• A fixed amount per day (or other period) of hospitalization. (aka, indemnity plans)

https://www.irs.gov/publications/p969#en_US_2019_publink1000204039

I know you don't expect to max it out, and given you're younger, I would be inclined to go to the Bronze HSA route, and try to max that out if you're able. You can take the income tax deduction on your taxes next year so you still see some benefit from it.

So it's $230/mo on the marketplace for a bronze HSA? That premium then would be $2760 which is effectively the same as the employer plan. The upside to selecting the employer plan would be the potential to make payroll HSA contributions which as explained above is superior to marketplace HSA plans.

I'd maybe see about enrolling in the workplace HSA, and if that contract and coverage ends Dec 30, since you currently have qualifying ACA coverage, you should be able to hop onto the marketplace. Or, you could also enroll in the marketplace anyway in open enrollment to have coverage effective Jan 1, 2021 and simply cancel the marketplace plan if the employer contract does not terminate.