VEBA Heath Insurance Plans...

[Coach1310]

Good day all. Just wanted to see if anyone has any expertise or experience with a VEBA Health insurance plan. My place of employment is offering it and it seems like a "decent" option for my family, but I'm not convinced it is the GREAT thing they are touting. I have a wife and 3 children 5 and younger, so doctor visits are a more often than just a couple or single person. Just wondering if anyone has experience and is willing to share how it has or hasn't worked for them.

Thanks

[MuskieJunkie]

I use it and don't have any complaints, although I went years without a medical issue so I built up a huge account before I got married and had kids. I have to spend $1500 per family member out of pocket before our insurance kicks in but I can submit for reimbursement of that money through VEBA. You can also get reimbursed for almost anything medical (eye glasses, cough medicine, birthing classes, hospital parking etc).

The trick is to have enough money in your VEBA account to cover your out of pocket liabilities. I would look at how much they give you per year and how much your out of pocket maximums are.

If your out of pocket maximum is $3k per family but your employer is only giving you $1k per year in VEBA money you're on the hook for that $2k. So this new plan would have to save you more than 2k to be a "better" plan than you're on now. Hope that makes sense.

[Coach1310]

Thanks for the response. I would have to contribute about 1400 on top of my premium to cover the out of pocket max... so in essence I am spending MORE $$$, but I will always have the extra left year after year in case I really need it.... I'm on the fence about it.. I like the idea of knowing that nothing is coming out of my pocket to pay the bills because I already have the $$$ there, but on the other hand, it will cost me a bit more each year, but the extra $$$ isn't lost so....... like I said... I'm on the fence!

Thanks for the info.

[CJH]

We like it simply because it basically becomes a savings account for medical expenses. So that money is there if we need it. I'd say that if you get any money from your employer to do it, its basically free money - or at least a better return than anything you would get sticking it in the bank. I believe its pretax/tax exempt, however I am not positive on that. If it is, that's another advantage. Of course that money is sitting in that account and can't be used for other expenses, so you have to understand your personal cash flow/balance sheet.

I definitely am not an expert (its my wife's plan and she knows a lot more about it than I do) but it seems like a decent option. Not sure how the new healthcare bill will impact it though.