Choosing Insurance
Choosing Insurance
Every year at open enrollment I debate insurance plans and not sure why I haven't asked here for opinions. We're a family of four, wife and two kiddos aged 5 and soon to be 3. Overall we're pretty healthy, no chronic illness, just the usual seasonal sickness. These are the options I'm debating:
Cigna LocalPlus PPO (current plan)
Individual Deductible: $2,500
Family Deductible: $7,500
Individual Max Out of Pocket: $6,350
Family Max Out of Pocket: $12,700
Premiums: $0, firm pays them in full
Cigna OAP HDHP/HSA
Individual Deductible: $3,000
Family Deductible: $6,000
Individual Max Out of Pocket: $6,000
Family Max Out of Pocket: $12,000
Premiums: $0, but would try to contribute the max to the HSA
I know there is more that goes into insurance like the copays and all, but hopefully the above info can get me some advice. If more is needed, please let me know.
Thank you,
VSS
Cigna LocalPlus PPO (current plan)
Individual Deductible: $2,500
Family Deductible: $7,500
Individual Max Out of Pocket: $6,350
Family Max Out of Pocket: $12,700
Premiums: $0, firm pays them in full
Cigna OAP HDHP/HSA
Individual Deductible: $3,000
Family Deductible: $6,000
Individual Max Out of Pocket: $6,000
Family Max Out of Pocket: $12,000
Premiums: $0, but would try to contribute the max to the HSA
I know there is more that goes into insurance like the copays and all, but hopefully the above info can get me some advice. If more is needed, please let me know.
Thank you,
VSS
Re: Choosing Insurance
If you choose the HDHP does your employer contribute anything to your HSA? Many will
Re: Choosing Insurance
My primary doctor told me once that HDHP/HSA plans are a disincentive to obtaining care. It's no wonder that employers push them as hard as they do. Be aware of that. You may need to pay a few hundred dollars for what otherwise would have been a routine doctor's appointment with a very small copay. If any member of your family needs an MRI, you'll pay thousands of dollars for it. Are you willing to do that?
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Re: Choosing Insurance
My thought is that the deductibles are so similar in the PPO vs. HSA that it makes sense to go with the HSA because you can start building tax-free funds to pay the deductible charges.
Re: Choosing Insurance
Having an HSA is a great benefit.
Particularly based on your numbers, I would definitely go with the HDHP plan.
Particularly based on your numbers, I would definitely go with the HDHP plan.
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Re: Choosing Insurance
Your deductible is only $500 more with the HDHP. Calculate your tax savings from your HSA contribution and I bet it's more than $500. You also have lower max out of pocket with the HDHP. Looks like a win.
Your employer contributes $1k to the HSA it's a bigger win.
Your employer contributes $1k to the HSA it's a bigger win.
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Re: Choosing Insurance
Assuming you have access to the same providers and services, the HDHP seems best.