HSA price goes down when adding a child?
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.
Q: I have a single person HSA insurance and account through my employer. I asked how much it would cost to add my child to the policy and the price was a lot lower than I pay for myself alone. Why?
A: This seems illogical at first, but is one of the quirks of the health savings account program as it is designed by law. Right now you have a policy with a single deductible, about $1600. When you add a child to the policy, it immediately becomes a "family" type plan with a minimum deductible of about $3200. Assuming all other factors remain the same, a policy with a single deductible of $3200 cost less than a policy with a "per person" deductible of $1600 each. There is no error here, it will cost you less (but also increase your risk exposure) to add your child to your HSA plan.
Summary
More resources:
www.healthsavingsaccount-hsa.com