I forgot to mention the PPO plan has an embedded deductible and the HDHP
is non embedded. I am not sure exactly how all that works or which one
would be better.
On 8/26/2019 9:50 PM, Craig via Mercedes wrote:
So what you have are:
PPO costs $825/month
PPO family plan has $500 individual, $1000 family deductible
Out of pocket max is $2500/$5000
Coinsurance is $15 for doctor visits and other items
are 10% after deductible is met
Drug copay is $10/$25/$50, depending on the drug
HDHP #1 (High Deductible Health Plan) costs $420 per month
HDHP #1 has $2000 individual, $2700 family deductible
Out of pocket max is $4000/$8000
Cost for care is 20% for everything after deductible is met
including prescriptions
HDHP #2 costs $165 a month
HDHP #2 has $3000 individual, $6000 family deductible
Out of pocket max is $6000/$12000
Cost for care is 20% for everything after deductible is met
including prescriptions
My thought is you would [go] with the lowest cost option and put in the
max $5k per year, broken out per month you would be at around $243 less
than the premium paid on under the PPO plan per month. Plus the $416
or so you put in would stay in the account and roll over year to year
as opposed to paying it out in premiums. Problem is if you have
something come up you would have to cover it out of pocket and
hopefully have enough in the HSA at the time. Other problem is
if you have expensive prescriptions on a monthly basis.
From this I infer the maximum contribution to the Healthcare Savings
Account (HSA) is $5k per year (= $416.66/month).
The cost of the PPO is $825/month
The cost of the HDHP #2 ($165/month) plus the cost of the HSA
contribution ($416.66/month) is $581.66, which is $243.34 less
than the cost of the PPO, as you said.
1. Does the HSA really roll over from year to year without any problem?
2. How healthy is your family?
3. Do you have expensive prescriptions on a monthly basis?
Yes, the problem with the HDHPs is you have to cover whatever comes up,
whether from your HSA or directly from your pocket.
If your family is healthy and won't have any accidents, the HDHP is the
way to go.
If your family is not healthy, or if you have expensive monthly
prescriptions, or if you have an accident not covered by your
automobile or other insurance, the HDHPs are not such a good deal.
In that case the PPO would be preferable.
Craig
================================================================
On Mon, 26 Aug 2019 21:04:17 -0500 "Kaleb C. Striplin via Mercedes"
<mercedes@okiebenz.com> wrote:
On 8/26/2019 8:52 PM, Craig via Mercedes wrote:
On Mon, 26 Aug 2019 19:49:22 -0500 "Kaleb C. Striplin via Mercedes"
<mercedes@okiebenz.com> wrote:
What are the thoughts on an employer PPO plan as opposed to a HDHP.
Let's say a PPO family plan has a $500 individual, $1000 family
deductible. Out of pocket max is $2500/$5000. Coinsurance is $15
for doctor visits and other items are 10% after deductible is met.
Prescriptions are
What?
$10/$25/$50 copay depending on the drug
Cost for PPO is $825/month.
HDHP #1 is $2000/$2700 deductible with $4000/$8000 out of pocket.
HDHP
#2 is $3000/$6000 deductible with $6000/$12000 out of pocket. Cost
#for
care is 20% for everything after deductible is met including
prescriptions.
For both HDHP's?
20% is the same on both plans
HDHP #1 is $420 per month.
HDHP #2 is $165 a month.
If going with HDHP plan you can setup a HSA with a max contribution
of $5k per year with a $2k employer contribution.
Is the employer contribution independent of what you contribute?
I think it is an up to thing. If you contribute $5k, they contribute
$2k. I would assume if you put in less they put in less.
My thought is you would [go] with the lowest cost option and put in
the max $5k per year, broken out per month you would be at around
$243 less
Than what?
Less than the premium paid on under the PPO plan
per month. Plus the $416 or so you put in would stay in the account
and roll over year to year as opposed to paying it out in premiums.
Problem is if you have something come up you would have to cover it
out of pocket and hopefully have enough in the HSA at the time.
Other problem is if you have expensive prescriptions on a monthly
basis.
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