(Federal Employee Health Benefits Question) Anybody done APWU CDHP option?

Questions on how we spend our money and our time - consumer goods and services, home and vehicle, leisure and recreational activities
Post Reply
Topic Author
motorcyclesarecool
Posts: 956
Joined: Sun Dec 14, 2014 6:39 am

(Federal Employee Health Benefits Question) Anybody done APWU CDHP option?

Post by motorcyclesarecool »

I’m starting my research for FEHB Open Season. Does anyone here have experience with the APWU CDHP? I have questions about how the HRA meshes with an FSA with that particular plan.
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.
Topic Author
motorcyclesarecool
Posts: 956
Joined: Sun Dec 14, 2014 6:39 am

Re: (Federal Employee Health Benefits Question) Anybody done APWU CDHP option?

Post by motorcyclesarecool »

Bumping this up again
Understand that choosing an HDHP is very much a "red pill" approach. Most would rather pay higher premiums for a $20 copay per visit. They will think you weird for choosing an HSA.
Snezz1e
Posts: 87
Joined: Wed Mar 14, 2012 11:48 am

Re: (Federal Employee Health Benefits Question) Anybody done APWU CDHP option?

Post by Snezz1e »

I had it when I first started as a federal employee in 2009. Moved on to GEHA HDHP after 2-3 years.

With CDHP you can have a regular FSA instead of just a limited FSA.

But long term I think the plan is far inferior to GEHA HDHP.

The PCA dollars are locked into the plan. Once you leave the plan everything is gone. HSA dollars can be moved to different plans and employers.

PCA dollars has to be exhausted before medical benefits kick in. If you build it up the $5k limit and have a major medical expense of $10k than that $5k is used to pay the first $5k in expenses and then you'll have to pay the 15% copay of the remaining $5k ($750). It doesn't matter that your deductible is only $2200.

Under GEHA HSA, a $10k expense would mean using $1.5k toward deductible and then 5% copay towards remaining $8.5k ($425) which you can use your HSA dollars towards so only $1,925 of your HSA dollars are used.

Premium on CDHP is higher than GEHA HDHP. GEHA has vision and basic dental coverage and provides $250/500 in additional wellness rewards if you complete the requirements.

With HSA you can also contribute your own money. Money going into HSA is better than Roth IRA or 401k contributions because if you use it for medical expenses it is tax free (including FICA) going in and out.
Soon2BXProgrammer
Posts: 3289
Joined: Mon Nov 24, 2014 10:30 pm

Re: (Federal Employee Health Benefits Question) Anybody done APWU CDHP option?

Post by Soon2BXProgrammer »

Snezz1e wrote: Thu Oct 14, 2021 11:42 am I had it when I first started as a federal employee in 2009. Moved on to GEHA HDHP after 2-3 years.

With CDHP you can have a regular FSA instead of just a limited FSA.

But long term I think the plan is far inferior to GEHA HDHP.

The PCA dollars are locked into the plan. Once you leave the plan everything is gone. HSA dollars can be moved to different plans and employers.

PCA dollars has to be exhausted before medical benefits kick in. If you build it up the $5k limit and have a major medical expense of $10k than that $5k is used to pay the first $5k in expenses and then you'll have to pay the 15% copay of the remaining $5k ($750). It doesn't matter that your deductible is only $2200.

Under GEHA HSA, a $10k expense would mean using $1.5k toward deductible and then 5% copay towards remaining $8.5k ($425) which you can use your HSA dollars towards so only $1,925 of your HSA dollars are used.

Premium on CDHP is higher than GEHA HDHP. GEHA has vision and basic dental coverage and provides $250/500 in additional wellness rewards if you complete the requirements.

With HSA you can also contribute your own money. Money going into HSA is better than Roth IRA or 401k contributions because if you use it for medical expenses it is tax free (including FICA) going in and out.
I have the GEHA HDHP and have had a good experience. (of course the primarily thing is check for network coverage for your doctors)
Earned 43 (and counting) credit hours of financial planning related education from a regionally accredited university, but I am not your advisor.
Post Reply