Will HSA Plans Be Eliminated in 17'?

[Yagents]

Here is an email from one of my subsidized HSA plan owners. They are out there. Income poor / asset rich. Older, where the APTC amount is huge. HSA is also a valuable tool to "keep" your APTC if MAGI goes to 401% FPL and above.
Smart client =
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Hi,
I have a quick question about contributing to my HSA and how that affects my Premium tax credit, as shown on the form 8962. If you don't answer these types of questions, let me know, but just wanted to see if I understood the forms correctly.

Contributing to my HSA reduces my Adjusted Gross Income on the first page of the form 1040. This AGI is the basis for the Premium Tax Credit calculation on form 8962. A lower AGI gives me a bit bigger net premium tax credit, which is used to offset taxes owed on page 2 of form 1040.

Is that correct that contributing to my HSA reduces my taxes by reducing AGI, AND increases the tax credit at the same time? Just checking that that sounds right, or am I missing a step somewhere. You don't usually get a double benefit from the IRS!

 

[taterpeeler]

This client is above the educational level of most agents clients.....

 

[Justin Bilyj]

I will be pissed if they take away my HSA (off-ex). They already raised my deductible and premium this year (30%+) increase in costs...

 

[junkman]

They'll take my HSA when they pry it from my cold dead hands..................................Nah, when the 1st excuse can be manufactured.

I remember when $1,000 with $1,000 inclusive OOP was considered a high deductible. We were able to avoid the premium of copays. Now the lowest premium available with a decent network has $6,400 OOP x2 Family and comes with a $1,000 monthly family premium.

I have clients who buy the exact plan on exchange and don't want to pay more. They are likely to drop coverage if the subsidy doesn't go up to compensate.

All but 2 of my small groups have dropped coverage. One will keep it because all employees are over the wage limit. The other will drop at renewal. Good by small group business. It was fun.

 

[AllenChicago]

Here is an email from one of my subsidized HSA plan owners. They are out there. Income poor / asset rich. Older, where the APTC amount is huge. HSA is also a valuable tool to "keep" your APTC if MAGI goes to 401% FPL and above.
Smart client =
-----------
Hi,
Is that correct that contributing to my HSA reduces my taxes by reducing AGI, AND increases the tax credit at the same time? Just checking that that sounds right, or am I missing a step somewhere. You don't usually get a double benefit from the IRS!

This gentleman is obviously someone who has learned how the rules work, and uses them to gain maximum utilization of the U.S.'s business and tax system.
(Too bad Trump didn't hire this guy, LOL.)

 

[Ann H]

This gentleman is obviously someone who has learned how the rules work, and uses them to gain maximum utilization of the U.S.'s business and tax system.
(Too bad Trump didn't hire this guy, LOL.)

That client is exactly the type of client that Yagents has. It's because Yagents has educated them for years about the benefits of HSAs.

For the "poor on paper" folks, these SUBSIDIZED HSAs are a winner. You just have to make sure that the CSR isn't so rich that it reduces the deductible below the IRS minimum for an HSA. Also, they have to make sure that the HSA deduction doesn't lower their MAGI into Medicaid level. However, most of these people are VERY sharp, and can figure it out in a heartbeat. Like Yagents, I have a lot of these folks in my book of business too.

 

[Yagents]

Plans must be submitted by May 11th, and HSA regs just came out for 2017.
Any carrier with plans to submit higher deductibles, will cause HSA ineligibility.

2017 HSA limits released | BenefitsPro

Out-of-pocket maximums are unchanged at $6,550 for individuals and $13,100 for families;

Maximum contributions for family plans remain the same at $6,750;

Individual contributions can increase from $3,350 to $3,400.

High deductible plans in 2017 will be those that have an annual deductible of least $1,300 for self-only coverage and $2,600 for family coverage.

HSAs are open to all men and women enrolled in a high-deductible health insurance program (exceeding $1,300 for individuals and $2,600 for family) aside from those policyholders currently covered by Medicare or listed as a dependent.

 

[unic.consulting]

With those numbers, I don't think it will affect the HSA market here in Massachusetts at all. Which is definitely a good thing from my vantage point.

 

[Justin Bilyj]

Just got a notice that my insurer will be eliminating my off-exchange HSA end of next year, and if I want a plan I have to go to Obamacare....fother muckers!

 

[kgmom219]

Just got a notice that my insurer will be eliminating my off-exchange HSA end of next year, and if I want a plan I have to go to Obamacare....fother muckers!

Can you share which carrier/state?