Chapter 13 and High Deductable Health Accounts

[sophieanne]

Just curious if anyone knows. If you are in Chapter 13 are you allowed to be putting money into an HSA account to pay for medical expenses, etc.
Thanks!

[LadyInTheRed]

If your plan has already been confirmed and you haven't had an increase in income that requires your plan to be modified, then you can spend your money on what you need to, as long as you can also make your plan payment and any direct secured debt payments.

[dmc-2008]

I use an FSA and I put money in it since even before bk. However this year I didn't put near enough to cover our costs. :-(

[sophieanne]

Thank you both for your responses. One of those changes after the fact when Healthcare reform came in and changed my husband's plan from PPO to a high deductable one.

[switch625]

I've been putting $ into an FSA before and after filing. I believe that I was able to use the amount I contributed monthly as an expense to determine DMI, but I'd have to check. I submit claims for mileage for every med trip I take to bring in extra cash.

[sophieanne]

Thanks Switch! I appreciate your response.

[LadyInTheRed]

I believe that I was able to use the amount I contributed monthly as an expense to determine DMI, but I'd have to check.

If you actually spend the entire balance of the account each year, then it would be deducted from DMI as part of your medical expenses.

[spidge]

A little off topic, but I have to share. I signed up for this type of coverage and it was a bad experience. I went to get an MRI and was billed for someones surgery and out patient rehab later. Took all my money in one shot and it took over a year to get it corrected and removed from credit as it went to collections. It does sound like a good deal for younger healthier people, but I will stick to my current plan as I feel more secure in it. Don't let me scare you off. This is likely rare.

[LadyInTheRed]

Spidge, that sounds like an error by the hospital, not the insurance company. But the point that a high deductible policy is not the best option if you are not young and healthy is a good one. That is why they are often called catastrophic insurance. They are good if you are in a serious accident or major illness, but not for routine care.