What’s an IRA on steroids? Would you like one? Can you get one?

An “IRA on steroids” is the way health insurance expert Walton Francis explains the HD (high deductible) and CD (consumer-driven) health plan options available to federal and postal workers. Some of the federal health plans offer HD and CD options which in some cases include HSAs (health savings accounts). They include APWU, NALC, GEHA, Aetna, CareFirst and Mail Handlers that give enrolled workers (not retirees)health savings accounts worth $1,000 to $2,000 per year that can be rolled over from year to year. We’ll talk about the health savings accounts and your many other health plan options on today’s Your Turn radio show. Consumer Checkbook author Francis is the guest. The show begins at 10 a.m. EST. You can listen live online on 1500 AM in the DC area. The show will also be archived so you can listen to it anytime.

Feds and retirees have until Dec. 14 to pick their 2016 health plan. If they do nothing — which could be a big mistake — they will remain in their current health plan. That might be fine, unless premiums have gone up (most have) or your doctor or doctors will not be in their network next year. Most people do nothing. They stay in the same health plan year after year. But this time, things may be different. David Snell, director of Retirement Benefits for the National Active and Retired Federal Employees says the new self-plus-one option may cause lots of couples to switch from family coverage to the brand new S+1 option. But shop carefully. Many of the S+1 plans have about the same premium as a comparable family plan. Couples looking to save big bucks could be in for a big surprise. For more on the new option, click here.

According to Francis, the most important thing to look for in a health plan is its catastrophic coverage. That determines the amount of money you would be forced to pay, out-of-pocket next year in the event of a catastrophic accident or illness.

The limit-to-you amount ranges from $3,290 to more than $7,000, depending on the plan for self-only coverage. Among the S+1 plans, the range is $7,100 (APWU) to just over $16,000 in the SAMBA high option.  Among the family plans, the catastrophic limit ranges from a low of $7,300 (APWU) to as much as $15,000 (Kaiser and SAMBA). Big difference.

If you have questions for health plan expert Walt Francis, send them to me (before showtime) at: mcausey@federalnewsradio.com.

Listen if you can. And tell a friend. The tips you get today could save you thousands of dollars next year.

Nearly Useless Factoid

By Michael O’Connell

On The Simpsons TV show, the names of the Nahasapeemapetilon octuplets are: Pooham, Sashi, Pria, Uma, Anoop, Sandeep, Nabendu and Gheet.

Source: Wikipedia

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