Originally Posted By: pandus13
Originally Posted By: JHZR2
Yes. HDHP with HSA is the best deal around. I could get a regular plan but would pay double or more per month, and no return of premium like an HDHP.
If you're careful with saving, there's little risk or issue. More out of pocket, potentially, but not when you consider consistent premium costs.
JHZR2,
could you explain more about the underlined?
P.S. I consider this because of the pre-tax money, and usually I'm pretty healthy (except the winterly cold and my dental issues)
Thank you
Sure. I can only explain how mine works, so read plan details and understand all cost and deductible/coinsurance guidelines.
My HDHP with HSA costs $x/month. Any decent family plan from my employer costs $2*x and higher.
My HDHP has an HSA. I can put pre-tax money into the HSA that is mine forever, it does not need to be spent by the end of the year like an FSA.
My HDHP provides some return on premium each month directly into the HSA. Who exactly pays it (really I do and my employer does, I guess, but its a different line item than my deposits) I can't say, but it gives a net reduction on the premium cost because its less I have to pay out of pocket, and this money going into my HSA is mine forever.
The HDHP requires me to pay 100% until a certain level. Beyond that, the HDHP pays 90% and I pay 10%, up to another level ($10kish in total bills). Beyond that, the insurance pays 100%.
So your exposure is the deductible, and then the coinsurance. You know exactly how much you have to pay out of pocket. Sure, if you're hitting deductible and then most/all of the coinsurance year after year because of health issues in the family, it may be better to just pay a higher premium up front and get everyone paid from the first dollar or some minor deductible/coinsurance.
For us, its only when babies have been born that we hit the deductible. The other years we don't hit the full amount out of pocket.
You have to consider first how much less the premium is than an equivalent non HDHP plan. Then you need to consider how much return on premium, if any, you get. From there, you can determine if you're in the money most years (where if you saved the delta of the premium cost, plus any ROP, if you'll end up with more money in the HSA than you've spent), and what your savings profile is.
For us it is profitable to use the HDHP/HSA, even if we go over deductible some years. Over time our HSA has grown and the lower premiums are nice too.
Hope this helps.