Medical insurance for child?

[Anonymous]

Sort of random topic for this type of forum, but one that I'm looking for advice on. 

My employer offers pretty good medical insurance when it comes to an individual plan, but their plans for more than just the individual (adding a child, spouse/family, etc) are ridiculously priced for what you get, as there is no employer contribution outside of the individual employee.  Adding my son to my plan will cost me $6k/year, an expense that I'm trying to reduce.

Anyway, when it comes to medical insurance I'm probably the most uneducated person on this forum.  I've never really even thought about it since I've always just worried about myself and have had generally the same plan with my employer for nearing 20 years.  If I want to seek out medical insurance for my son elsewhere, where would I even begin to look?  What are sources of "good" insurance for a child that aren't astronomically priced?  Any advice or info here would be excellent.  Thanks everyone. 

[Kree]

Did your child recently lose coverage? If so you might be eligible to enroll through the ACA marketplace.  Based upon previous posts in this forum, I will assume that you will not be eligible for any discounted rates, but the base rates are likely still less than 6k a year.  A quick look at my state shows "platinum" coverage plans for a child around 4k a year, but each state is different.

[Anonymous]

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@Kree wrote:

Did your child recently lose coverage? If so you might be eligible to enroll through the ACA marketplace.  Based upon previous posts in this forum, I will assume that you will not be eligible for any discounted rates, but the base rates are likely still less than 6k a year.  A quick look at my state shows "platinum" coverage plans for a child around 4k a year, but each state is different.

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Yes, he lost coverage through his mother in February.  I'm in NY state.  Do you know of any sites to check out, or medical insurance companies worth looking into?

[Kree]

try the NY healthcare marketplace

https://nystateofhealth.ny.gov/individual/searchAnonymousPlan/pagePlans

I don't think the companies are allowed to offer cheaper options privately, so it should be a comprehensive list of all of your options.

[marty56]

An HSA plan usually is cheaper but they have a high deductible.   It grows tax free and it is tax free when withdrawn.  It effectivly allows you to deduct medical expenses from your income.  My company uses one and even with the large deductible it is much cheaper then a regular plan.

[LakeLife]

Is he a college student by chance?  If so, most universities have group rate health insurance that runs pretty cheap comparatively.  If not, it may be worth it to talk to an insurance broker, because they can compare rates very easily from several different sources.  

[Caardvark]

I agree with the poster above about looking at High Deductible Plans with an HSA if your son is generally healthy.

The vast majority of children do not use a lot of healthcare throughout the year so, it's finanically advantageous to have such a plan. Other advantages:

• The money you put into an HSA is tax free and can be rolled over year-over-year (unlike an FSA)
• Many HSA plans will allow you to put your funds in investment vehicles

The annual maximum contribution is just north of $6K. It's basically a tax free a 401K for your health. 

[kerplunk]

HSA is the best possible investment account.

1. It’s not taxed going in.

2. Investment gains aren’t taxed (throw the money in an S&P 500 index fund for 6-10% annual return).

3. It’s not taxed going out (if used for medical expenses).

(You never pay taxes on HSA money using the method I described above!)

You can literally save medical receipts today and claim them 30 years from now to take money out tax free.