For most of my adult life I had a PPO/traditional co-pay plan. Then about 4 years ago the premiums really became unaffordable and because my husband and I are pretty healthy, we decided to switch to HDP.
The HDP at work has a $1800 deductible, then 10% coinsurance (on the insurance negotiated rates- ie, discounted rates) up to a max OOP of $3600. The monthly premium was significantly less than the PPO plan. Even with maxing out our HSA every year we were coming in at less than the annual cost for the PPO plan. So if we had stuck with the PPO plan we would have spent thousands for plans we didn’t use. By using the HDP, we now have $20k+ set aside for our health care when needed- which will convert to a savings account when we retire (we are only 37, so plenty of time to continue saving). I’m a huge fan of HDPs now. That said you will want to run the math on our own situation to see if it’s worth it.
LSJRSC t1_iuduo7t wrote
Reply to Is there a downside to enroll in HSA vs. FSA? by newsboyron
For most of my adult life I had a PPO/traditional co-pay plan. Then about 4 years ago the premiums really became unaffordable and because my husband and I are pretty healthy, we decided to switch to HDP.
The HDP at work has a $1800 deductible, then 10% coinsurance (on the insurance negotiated rates- ie, discounted rates) up to a max OOP of $3600. The monthly premium was significantly less than the PPO plan. Even with maxing out our HSA every year we were coming in at less than the annual cost for the PPO plan. So if we had stuck with the PPO plan we would have spent thousands for plans we didn’t use. By using the HDP, we now have $20k+ set aside for our health care when needed- which will convert to a savings account when we retire (we are only 37, so plenty of time to continue saving). I’m a huge fan of HDPs now. That said you will want to run the math on our own situation to see if it’s worth it.