Health share comparison  - HSA plans with health sharing plans

Can you have an HSA account with Health Sharing Plans?

 

 

They should be the 1-2 punch of saving for healthcare costs.

 

• The lower monthly cost for health sharing plans
• The tax saving benefits of HSA accounts.

 

Can we have our cake and eat it too?

 

We get the question every day now as both seem to attract like-minded people.

 

We'll answer the question below (promise) and also talk about:

 

• how to consider the HSA results in your cost comparison
• What happens with an existing HSA
• Is there legislation regarding health sharing and HSA's pending

 

Let's get right into it with the key question

 

Can you have an HSA account with health sharing options?

 

Currently, you cannot fund an HSA account if you do not have an HSA compatible plan.

 

There are certain rules on what makes an HSA compatible plan eligible.

 

But definitely...it has to be an insurance plan.

 

Health sharing plans are not health insurance by definition.

 

You can check out the differences between health sharing versus health insurance here.

 

So...as it currently stands, we cannot fund or open a health savings accounts.

 

What about if we have an existing account?

 

Existing HSA accounts and health sharing plans

 

You can continue to spend down an HSA account for eligible out-of-pocket expenses.

 

You just can't put additional funds into the account (with the tax benefits, anyway).

 

You're not required to spend down but it's definitely an option.

 

Cost calculation of not having HSA account option with health sharing plans

 

If we're not getting a tax credit, health sharing plans can be much less expensive than ACA health insurance bronze plans.

 

We generally see rates about 1/2 of the bronze level plan.

 

We need to also look at the HSA deduction savings in this calculation.

 

Assume the following for a person:

 

• Funds $3000/year in an HSA account
• 33% tax bracket

 

That's about $1000/year in real after tax savings assuming we fully fund this amount.

 

This is approximately $80/month is savings.

 

Ideally, we would need to take this into account when comparing costs between health sharing and HSA qualified plans.

 

If you're older, the cost difference between HSA qualified plans and health sharing plans can be significant.

 

Significant enough to override the tax savings of the HSA.

 

For younger people, that might not be the case.

 

Are there any plans to change the HSA account and health sharing plans discord?

 

Any legislation to combine HSA accounts and health sharing plans?

 

There were signs of nascent legislation to add parity for people with health sharing plans who wanted the HSA deductions.

 

With the current state of Congress, it's probable that this legislation is dead in the water.

 

We'll keep an eye out for any changes on that front.

 

You can quote health sharing plans here:

 

Also, see a comparison of health sharing plans and our analysis of the best health sharing ministry plan here.

 

Make sure to learn about the differences between health sharing plans and Obamacare.

 

We're happy to help with any questions.

 

There is ZERO cost for our assistance!

 

Again, there is absolutely no cost to you for our services.  Call 800-320-6269 Today!