Deductibles

[Guest ejh]

Question - If an employer is moving from one H.S.A.(insurance side of the H.S.A.) carrier to another carrier...can those deductible limits that been accrued carried over to the new carrier?

I.E. Moving from Anthem Blue Cross H.S.A. plan and have paid $1500 of my $2250 deductible, moving to a United Healthcare H.S.A. $2000. Is there any rulingregs that would not allow my $1500 dollars of the deductible to be carried over?

[masteff]

To the best of my knowledge, in a fully-insured plan, the only time deductibles do not reset w/ a mid-year change of carrier is when it's been specifically negotiated with the new carrier.

[Guest ejh]

To the best of my knowledge, in a fully-insured plan, the only time deductibles do not reset w/ a mid-year change of carrier is when it's been specifically negotiated with the new carrier.

Interesting...I've always thought it was the other way around...I have yet to see a carrier outside of Kaiser not honor a pass deductible occurence. Now that I am being told that it is against Federal regulations and mandates, I am a bit concerned if the carrier is correct, or feeding me a line.

[Guest Benefits Broker CO]

The fully insured (small group) carriers that we work with give credit for the amount of deductible met in that calendar year with the prior carrier.

Your HSA contribution would still be limited by the Federal limits ($3,050 for single coverage and $6,150 for family coverage; plus the "catch up" for those 55 and over).

[Guest BellaVega]

Isn't that decided in the new contract? I never assumed deductibles were able to roll over, especially from two different insurers. But I guess there can be a clause in the contract that allows this.

[Guest Benefits Broker CO]

Isn't that decided in the new contract? I never assumed deductibles were able to roll over, especially from two different insurers. But I guess there can be a clause in the contract that allows this.

It may be in some states, but here in Colorado, all of the fully insured carriers that we work with, and most of the partially funded reinsurers as well, allow the previously accumulated calendar year deductible amounts to be credited to the new carrier when an employer changes insurance carriers at other than January 1.

[masteff]

It may be in some states, but here in Colorado, all of the fully insured carriers that we work with, and most of the partially funded reinsurers as well, allow the previously accumulated calendar year deductible amounts to be credited to the new carrier when an employer changes insurance carriers at other than January 1.

The real question is "can" versus "must". "Can" they or "must" they allow the previously accumulated deductible to be credited under the new contract at the new carrier. The fact that you say "most of the partially funded reinsurers as well" tells me that the answer is "can" because apparently a few do not.

I stand by what I and BellaVega have said... it's something that's negotiated into the new contract (as opposed to something that "must" be provided under general insurance laws).