Why does ACA say that one needs an HDHP to open and/or contribute to a HSA?

Amol S.

Platinum Member
Mar 14, 2015
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It intrigues me to think why ACA has such requirement, why not let anyone regardless if they have any type of insurance or not to open and/or contribute to an HSA.
 

NutBucket

Lifer
Aug 30, 2000
26,703
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Conspiracy theory; something negotiated by insurance companies to "encourage" people to move to HDHPs...
 

IronWing

No Lifer
Jul 20, 2001
65,470
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The requirement predates the ACA and was designed as a carrot to move people to HDHPs. The rationale was that having HDHPs would cause people to think about the costs of care and drive market-based decision making. It was John McCain's baby. It is another example of how clueless Congresscritters are about the lives of their constituents and the machinations of the private health insurance and private health care industries.


<== Has used an HDHP/HSA for years. Still can't make market-based decisions because providers and insurers won't disclose costs until after the fact.
 
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deadlyapp

Diamond Member
Apr 25, 2004
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The requirement predates the ACA and was designed as a carrot to move people to HDHPs. The rationale was that having HDHPs would cause people to think about the costs of care and drive market-based decision making. It was John McCain's baby. It is another example of how clueless Congresscritters are about the lives of their constituents and the machinations of the private health insurance and private health care industries.


<== Has used an HDHP/HSA for years. Still can't make market-based decisions because providers and insurers won't disclose costs until after the fact.
I try to stick it to the man by using the HSA as an investment vehicle, however the stock market is currently making me look like the idiot, so there's that.

Either way, if you don't have high expense health care needs, a HDHP almost always results in lower cost of service, especially if your company contributes to your HSA for you like mine does.
 
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nakedfrog

No Lifer
Apr 3, 2001
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I try to stick it to the man by using the HSA as an investment vehicle, however the stock market is currently making me look like the idiot, so there's that.

Either way, if you don't have high expense health care needs, a HDHP almost always results in lower cost of service, especially if your company contributes to your HSA for you like mine does.
Yep, I had to crunch the numbers a lot with my household's medical expenses when I switched to a silver-tier plan instead of bronze, and even then it was a little bit of a gamble as to whether I'd come out ahead. Now that things have settled a bit and medications have changed, I'm happy to finally go back to an HDHP next year.
 

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