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The HSA Account

January 21st, 2020 at 03:12 am

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.

4 Responses to “The HSA Account”

  1. Lucky Robin Says:
    1579591761

    That's not good of them to sneak that in like that. It is a benefit cut.

  2. creditcardfree Says:
    1579617086

    Have you inquired to make sure it wasn't a mistake? Frustrating that is wasn't communicated.

  3. LifeBalance Says:
    1579627611

    I'm fairly certain it's correct because the provided overview PDF document, a sign-up site (separate from the company's intranet), and the paycheck all align. However, it wouldn't hurt to ask the question of HR. I'm in a management position so I could get questioned by my team. Also asking the question of HR may serve as a hint to them that they should explain changes!

  4. latestart Says:
    1579651817

    My company did the same thing several years ago. You are correct it is like a small pay cut. When the switch to Health Savings Account every year it was said this could be the last year for the funds. When they eliminated the funds they never said anything. It was just not included in the open enrollment information.

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