HSA Confusion

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Re: HSA Confusion

Unread postby DadWantsMore » Thu Feb 23, 2017 7:42 am

My interpretation of what he is saying is that the 650 is:

Total deposited into hsa - total that WOULD be deposited for a single employee = $650 per quarter?
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Re: HSA Confusion

Unread postby hoosier_dad » Thu Feb 23, 2017 8:35 am

One indicator of how a CA court might view an HSA account as part of a High Deductible Health Plan is to look at CA caselaw. The only mention is a 2011 decision from the Court of Appeals, 5th District.

Ebaugh was ordered to continue to contribute $450 per month to a health savings account (HSA), with the funds to be used to pay the children's uninsured medical costs as their medical insurance was only for catastrophic injuries. The parties were ordered to pay one-half of any uninsured health care expenses that exceeded the amount in the HSA.


In the case above the court viewed the HDHP as more of a safety net, with the HSA funds to be used to pay uninsured health care expenses before the parents began splitting the expenses once the HSA amount was spent.
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Re: HSA Confusion

Unread postby Fatheroffour » Thu Feb 23, 2017 8:49 am

HD is typically on the money. I'll add this strategy tip.

Dont make the other sides case for them.

It should be noted that the healthcare landscape is in flux and has changed since 2011, and its been promised that it will be further changed any day now by our current Comrade in Chief.
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Re: HSA Confusion

Unread postby hoosier_dad » Thu Feb 23, 2017 9:45 am

Ron, this really boils down to two options, and the approach you take is going to be up to you.

I've dealt with an HSA for 6+ years after my divorce, and will provide the two options with my numbers as an example:

HSA Summary
- Employer deposit = $1,600 per year ($800 for me, $800 for children)
- Annual deductible = $2,600 per year (traditional health care kicks in once $2,600 is spent on healthcare each year)

Option 1
- Consider all health care expenses up to $2,600 per year as uninsured expenses
- Keep all HSA funds including deposits for your own use, ex gets no HSA funds

Although there is caselaw showing that HSA funds are shared, your risk of getting punished in court is slim to none because there is no decree wording on sharing HSA funds. The downside is the negative impact on your relationship with your ex, and potential legal fees to have this issue clarified if she takes it to court.

Option 2
- Pay the first $800 of child care expenses with HSA funds per year, then consider health care expenses from $800 - $2,600 per year as uninsured expenses
- HSA funds designated for the children are shared each year

IMO Option 2 makes the most sense even if your decree doesn't clearly specify this type of agreement.

The decision is up to you. I'll add this disclaimer, I started at Option 1 and moved to Option 2 over time as my relationship with my ex improved.
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Re: HSA Confusion

Unread postby Minerva » Fri Feb 24, 2017 3:12 pm

My relationship with my ex sucks and I consider 100% of the money that comes out of my HSA as uninsured expenses. Why? Because 100% of it would go into my pocket if they didn't get the expense. Even the money deposited by your employer is yours to use in the future or pull out at retirement.

You can be generous at your discretion, but I'd never make the case that she is entitled to any of the money. If it's not a good deal for her, let her get a job and insure the kids...
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