An HSA is a pre-tax savings account that’s used as a payment method for eligible medical expenses. When you choose an HDHP, you may also be able to elect to use a health savings account (HSA) with an employer contribution. And if your medical needs change suddenly, this would be a less financially beneficial plan. Keep in mind that you may not have a copayment on doctor’s visits with an HDHP plan until you meet your high deductible. Typically, HDHPs are a good option for younger people, individuals without families, and those who are generally healthy. Not an easy choice.“HDHPs typically benefit healthier consumers who do not expect to need much medical attention for the year, and the advantages include lower monthly premiums,” explains Susan Beaton, a former VP of provider services at Blue Cross and Blue Shield of Nebraska.”A PPO, especially one with a low deductible, may suit those who expect frequent doctor visits and prescriptions due to something like a chronic condition.” Pros and cons of HDHP with HSAĪn HDHP is a better deal for those who do not anticipate having many medical expenses throughout the coming year. It's an individual choice with a lot of factors to consider. And if the HDHP doesn't have an OOPM = deductible, there could be some catches not mentioned above - like things not covered or something. The PPO with an OOPM of $1000 more (assuming HDHP OOPM = deductible) but a $1000 lower deductible sounds pretty equivalent but has premiums however, if it allows better service (regarding pre-approvals, referrals, and networks) it might be worthwhile for some people. Seems like if you can cover that $2500, it might be the way to go for many people. However, OP quoted only $2500 for deductible for the HDHP and that is nothing like the high deductible that I had, plus it has an HSA and zero premium, coinsurance or copays. Premiums are higher, but knowing that we can get the healthcare we need when we need it from who we want and not having to skip medications is worth it. But also, important to me, the PPO lets us go to whatever doctors we need to without weird pre-approvals or referrals, and while they still do the in-network/out-of-network crap (which should be illegal), it's not as bad. Of course it also helps not living paycheck-to-paycheck anymore. It's mostly just trivially small copays spread throughout the year, and the deductible is manageable. Now we're on a PPO, and things are much easier. It covered our first month and kept us from going under. HR thought I was crazy - nobody took the maximum and everyone was struggling to use it up at the end of the year. Found a workaround by taking maximum allowable FSA and burning through that first. I carefully ran the numbers, determined that the high-deductible plan (which was an $8000 deductible) would definitely be cheaper in the long run, selected it, and then afterward factored in medications' costs and realized that we couldn't really afford one month on it and would be bankrupt by month three. High deductible can be crazy expensive if you're living paycheck-to-paycheck, especially if you've been out of work for awhile and are low on money and just starting a new job and have a family with medical issues. Here, please treat others with respect, stay on-topic, and avoid self-promotion.Īlways do your own research before acting on any information or advice that you read on Reddit. Get your financial house in order, learn how to better manage your money, and invest for your future. Banking Megathread: FDIC, NCUA, and your cash.Private communication is not safe on Reddit. Scam alert: Ignore any private messages or chat requests.
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