Since I’ve gotten my first paycheck of the year, I’m checking the accuracy of my deductions. The company where I work had an enrollment period for our 2020 benefits during November. As typical, health insurance premiums increased some. Most other benefits remained the same. But there was one odd change – the company’s contribution to our HSA accounts DECREASED by 500 bucks. No explanation. That’s like a small pay cut. I don’t like when negative changes are implemented quietly – it seems sneaky. In fact, I wonder how many of my colleagues noticed. As an aside, this reminds me of my experience with banks. PNC and Ally both have fluctuating interest rates, but Ally sends a notification every time the rate changes, regardless of the direction. PNC never has sent a notification. Guess which bank I trust more?
Anyway, since the HSA maximum contribution increased by 100 bucks (to $7100) in 2020, my company’s contribution decreased by $500 in 2020 (to $1000), and I’m eligible to contribute an extra ‘catch-up’ $1000 because I turn 55 this year, that leaves me with an extra $1600 to fund or $133 more each month than last year. About $592 total each month.
When the company moved to a high deductible plan years ago, it was a scary change. But in hindsight, it was a good move for our family. We’re a healthy bunch overall. Last year was pricey with two using braces-alternatives and the DH getting an MRI for knee pain, as well as typical doctor visits for bumps & bruises. (Boys and sports…) But we still didn’t come close to using the year’s contributions. So the HSA account has been building up. I’d like for it to reach a ‘safety net threshold’ of being able to cover 18 months of COBRA premiums in the event that the company and I part ways. Based on the company’s year-end statement, the total monthly premium for our family coverage is just over 2 grand. [I pay about $450 of that currently which admittedly is a good deal for a family of 7.] So my safety-net value for the HSA would be $36k. I’m about $10k shy of that now. Maybe within the next two years though? It would just be for peace of mind – my planned exit is not that soon.
The HSA Account
January 21st, 2020 at 03:12 am
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