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Ex-husband: HSA and high deductible enrolled after divorce

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tsisson1970

Junior Member
What is the name of your state (only U.S. law)? Arkansas

Per our divorce papers, my ex is suppose to pay for the children's health, dental, and vision insurance. Any copays and prescriptions were to be split 50/50.

I took my daughter to the doctor for a sinus infection and we've discovered that there is a $3,000 deductible on their insurance. When I tried to pay for the visit in cash, after already paying the copay, the visit amount was $90 for cash payment but since my ex had sent them new insurance cards that he had not provided me, the visit would cost more. Up to double what the cash price was and that I was no longer able to just pay the cash price as they had already billed his insurance. Which, will do nothing aside from apply it to the $3,000 deductible. The deductible on my CAR is less than that. I asked him honestly, how his insurance could justify raising the deductible to that high of an amount and he assured me it was standard. What he didn't mention was that his company gave him an HSA to pay those deductibles, tax free, and that he was using it for himself, allowing me to alone pay the standing deductible for his kids.

He already has opted to have extra funds taken out from his check for his federal taxes, in order to get a larger refund, and also to avoid paying taxes on that money. I've ignored this because it is stupid to fight over a few dollars and if he wants to be a jerk, he's going to be it with or without my intervention. But $3,000 for a deductible?

If anyone has any information that can help, please do. My only thought is to just suck it up. Although, threatening him with my lawyer does seem to get some action on his part. He can't afford one.
 


Zigner

Senior Member, Non-Attorney
What is the name of your state (only U.S. law)? Arkansas

Per our divorce papers, my ex is suppose to pay for the children's health, dental, and vision insurance. Any copays and prescriptions were to be split 50/50.

I took my daughter to the doctor for a sinus infection and we've discovered that there is a $3,000 deductible on their insurance. When I tried to pay for the visit in cash, after already paying the copay, the visit amount was $90 for cash payment but since my ex had sent them new insurance cards that he had not provided me, the visit would cost more. Up to double what the cash price was and that I was no longer able to just pay the cash price as they had already billed his insurance. Which, will do nothing aside from apply it to the $3,000 deductible. The deductible on my CAR is less than that. I asked him honestly, how his insurance could justify raising the deductible to that high of an amount and he assured me it was standard. What he didn't mention was that his company gave him an HSA to pay those deductibles, tax free, and that he was using it for himself, allowing me to alone pay the standing deductible for his kids.

He already has opted to have extra funds taken out from his check for his federal taxes, in order to get a larger refund, and also to avoid paying taxes on that money. I've ignored this because it is stupid to fight over a few dollars and if he wants to be a jerk, he's going to be it with or without my intervention. But $3,000 for a deductible?

If anyone has any information that can help, please do. My only thought is to just suck it up. Although, threatening him with my lawyer does seem to get some action on his part. He can't afford one.
It seems to me that he is following the letter of the court order.
 

stealth2

Under the Radar Member
High deductibles are rather standard these days - if you want a reasonable premium. You are able to start an HSA yourself - his does not negate your need to cover half the costs/deductible. Sorry - you're wrong.
 

LdiJ

Senior Member
High deductibles are rather standard these days - if you want a reasonable premium. You are able to start an HSA yourself - his does not negate your need to cover half the costs/deductible. Sorry - you're wrong.
The difference is that his employer is providing his HSA, so it not costling him anything, while her 50% of the medical expenses is contributing to his family's deductible. Even if she starts an HSA of he own, he is still benefitting.
 

tuffbrk

Senior Member
Your concern is that you wanted to opt out of the co-pay and instead pay full price for the visit because you don't want your child's office visit to be applied against his deductible? Am I understanding you correctly? If that's the case, office visits are outside of the deductible and will not be applied against it.
 

LdiJ

Senior Member
Your concern is that you wanted to opt out of the co-pay and instead pay full price for the visit because you don't want your child's office visit to be applied against his deductible? Am I understanding you correctly? If that's the case, office visits are outside of the deductible and will not be applied against it.
I do not think that is accurate, or at least not accurate for all high deductible policies with an HSA. I think that she was trying to save them both money by paying in cash and collecting half from dad.

If an office visit is 150.00 (for example) discounted to 90.00 for paying cash, and insurance isn't going to cover it then 45.00 is cheaper than 75.00.
 

stealth2

Under the Radar Member
The difference is that his employer is providing his HSA, so it not costling him anything, while her 50% of the medical expenses is contributing to his family's deductible. Even if she starts an HSA of he own, he is still benefitting.
Perhaps. But going from my experience (with several employers, mine AND ex's) - the option of an HSA is offered, but the employee provides the $$, pre-tax. I have yet to come across an employer who puts the money in, even as a hiring incentive. Dad uses it to cover his half, Mom covers her half. I simply don't see that as unfair.
 

LdiJ

Senior Member
Perhaps. But going from my experience (with several employers, mine AND ex's) - the option of an HSA is offered, but the employee provides the $$, pre-tax. I have yet to come across an employer who puts the money in, even as a hiring incentive. Dad uses it to cover his half, Mom covers her half. I simply don't see that as unfair.
If its employee funded that part isn't unfair. However, most HSAs that I am familiar with have an employer contribution as well, with some funded entirely by the employer, particularly when a plan has just changed. A lot depends on how much of the insurance savings the employer passes on to the employee. The more that's passed on, generally the less the employer contributes to the HSA.
 

stealth2

Under the Radar Member
And I would bet OP has no idea which it is.

Health care is expensive, no matter how one slices it.
 

Zigner

Senior Member, Non-Attorney
It's not accurate to say that the employee doesn't pay for the HSA. The funds in the HSA are part of his overall compensation package. As such, he "pays" for it by doing the work required to get it. It may not come directly from his wages, but he certainly does the work that's required to get the HSA in the first place. Perhaps the OP needs to find employment that offers a similar compensation package.
 

cbg

I'm a Northern Girl
Perhaps. But going from my experience (with several employers, mine AND ex's) - the option of an HSA is offered, but the employee provides the $$, pre-tax. I have yet to come across an employer who puts the money in, even as a hiring incentive. Dad uses it to cover his half, Mom covers her half. I simply don't see that as unfair.
My employer does. But not the full amount; there's a flat rate - x for individual and 2x for family (regardless of the number of family members). AND the employee has to elect to have us put it in; they omit to check the box and they don't get the money. Anything beyond that is up to the employee to put in.
 

tuffbrk

Senior Member
I do not think that is accurate, or at least not accurate for all high deductible policies with an HSA. I think that she was trying to save them both money by paying in cash and collecting half from dad.

If an office visit is 150.00 (for example) discounted to 90.00 for paying cash, and insurance isn't going to cover it then 45.00 is cheaper than 75.00.
She says she initially paid a co-pay and then attempted to pay for the full visit in cash. If a co-pay was applicable, it's likely that office visits are not part of the deductible.
 

cbg

I'm a Northern Girl
I asked him honestly, how his insurance could justify raising the deductible to that high of an amount and he assured me it was standard.

That is called a High Deductible plan and they are becoming very standard. There are some companies that don't offer any options except high deductible plans. They are a perfectly legal plan model. I don't personally like them in all cases but they serve a valid purpose and can be very good plans for some people's situations.
 

LdiJ

Senior Member
I asked him honestly, how his insurance could justify raising the deductible to that high of an amount and he assured me it was standard.

That is called a High Deductible plan and they are becoming very standard. There are some companies that don't offer any options except high deductible plans. They are a perfectly legal plan model. I don't personally like them in all cases but they serve a valid purpose and can be very good plans for some people's situations.
They reduce the cost of the actual health insurance pretty significantly and the money put into the HSA is excluded from tax (both employer and employee contributions). Plus unlike FSAs they roll over into future years if they are unused, so that can also be very attractive.
 

cbg

I'm a Northern Girl
Thanks for the followup. :)

I like them in situations where the employee can either fully fund the deductible upfront (with or without employer contributions) or where the employee/his family know that the odds are good that their health care will be minimal for the year. A family who has significant health care needs and who cannot fully fund the deductible upfront is unlikely to find it an attractive option.
 

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