When is a High Deductible Health Plan with an HSA a Good Choice?

When is a High Deductible Health Plan with an HSA a Good Choice?

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[djaziztube]

Even if I hit maximum out of pocket in my HDHP it is less expensive than the annual premiums of the "cadillac" plan with my employer. Choosing HDHP was a no brainer.

[legaryd]

I would add that HDHPs are very compelling if you use any kind of out-of-network care. The combination of the 60/40 split, higher premium, copays and balance billing makes the insurance pretty worthless anyways

[ddellwo]

My company’s HSA was started about ten years ago when they began offering both a traditional plan and a high deductible plan. At the time, I crunched the numbers and decided it was FAR better for my family to go the high-deductible route and plunk the savings into a HSA.

Since then, my company decided to go to the high deductible plan only and got rid of our traditional “Cadillac” plan. I don’t blame them a bit - once both plans were offered, the people who stayed with the traditional plan seemed to be the hypochondriacs who headed off to the doctor at the slightest

[susank.]

All non-Americans are scratching their heads right now wondering what on Earth is this all about.

[helomech]

My employer puts 1000 a year seed money into my HSA for being in the plan, and I pay less than 40 a month in premium.

[nickdoyle-achievefinancial]

Tough choice. I guess you would have to take your estimated yearly out of pocket (including premiums) and compare to the tax benefits. I love avoiding the 7.65% social security + medicare taxes!

[ashtonthomas]

perhaps they are unintentionally counting HSA contributions as part of the "premium amount"

[bryanburke]

I was really worried when I went too a HDHP. It was the best decision financially that I've made.

[carrjar]

I was excited to learn my employer was going to offer a HDHP option in 2024. The monthly premium is 8x HIGHER? This makes no sense to me.

[Direct.injection]

The order of operations is helpful for this. The Order Of Operations For Saving
Step 1 - Save in Your 401k (Up To The Match)
Step 2 - Save The Max In Your IRA
Step 3 - Continue To Max Your 401k Contributions
Step 4 - Max Your HSA
Step 5 - Side Hustle And Do A SEP IRA
Step 6 - Save in a Standard Brokerage Account

[EnzroGreenidge]

If you are young and healthy always choose the HSA plan and invest the money.

[junepark]

i'm trying to enroll in HSA eligible insurance. How does "premium pass through" work? does the insurance company contributes premium automatically into HSA account??

[bluegillmich]

I have had HDHP and fully funded my HSA for a few years now, i end up paying my full co-pays most years and don't end up with a savings( towards the future). I had the regular medical account and ended up with a lot of after tax medical co-pays..My wife has had a major stroke years ago..Always we seem to have medical issues that cost a full deductible( ex; medical issue arises and it's a full gambit at the Emergency room)

[veznha]

I need help. For the past 5 years my husband and I have been on a HDHP plan with HSA(employer gives a monthly contribution of $50) we pay $156/month (deductible of 3, 000/fam and 9, 000/fam for out of pocket). Within these 5 years my husband had a kidney transplant and has medication that he’ll be on for life as well as regular Dr visits and specialist visits. Lately we’ve been thinking about having a child and whether or not we should switch to an PPO. The PPO would cost us $216 per month (2, 400 deductible/fam and 12, 400 out of pocket/fam)

Can you help me decide or what should I be focusing on. I’m so lost and scared of change but the PPO would be about$35 for copay at Dr so it sounds like it might be better bu

[ramonallende]

I joined my HSA and Murphy moved in, broken foot and some other issues later I got my PPO back the following year 😂

[bnbmarbleboardswoodshop]

DON'T SKIP STEP ONE: DEDUCTIBLES COVERED...

[MikeThePike]

What if your company's HMO plan and the HDHP premiums cost the same? Would it make more sense to have a lower copay and out of pocket costs (HMO) as opposed to shelling out more money for the HDHP although you have access to an HSA?

[kathylloyd]

I don't think anybody should be left out when going for digital assets

[chrisfrancis]

Ya, high deductible plans I have looked at doesn't make sense with the high monthly cost

[mscolli]

My short answer: When you never go to the doctor, and your employer kicks in to your HSA enough to cover a good chunk of your premiums.