Author Topic: Medical deductible  (Read 835 times)

merlin7676

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Medical deductible
« on: May 03, 2018, 02:43:15 PM »
I've seen a lot of financial blogs and forums with people saying that they always get the high deductible.  I'm curious why that is and what sort of advantage it has over a medium deductible as there is less out of pocket for a higher premium?

Our new one isn't out yet but for last year (July 1, 2017-June 30, 2018) the

High was nothing out of check but $4000 deductible for DH and myself.
Med was $72.12 per check plus $2500 deductible for DH and myself.

We chose the high as it's $4000.
Med is 72.12X26 checks so 1875.12 plus 2500 so $4375.12. 

So overall the high was cheaper but the $72 per check is also pre-tax on the check so there is a bit of savings there.

Is there anything else I should be aware of before the next sign up?

Oh and if it makes a difference we both have some medical issues that require routine screening and medication and whatnot so we do see doctors several times a year and have labs/procedures done.

thanks
« Last Edit: May 03, 2018, 02:46:41 PM by merlin7676 »

honeybbq

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Re: Medical deductible
« Reply #1 on: May 03, 2018, 02:48:54 PM »
With a high deductible plan you can contribute to an HSA instead of a an FSA, and HSA beats the snot out of an FSA.

merlin7676

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Re: Medical deductible
« Reply #2 on: May 03, 2018, 02:51:52 PM »
My company does not have a HSA so I cannot contribute to that. We do have a FSA but it's only good for the year..use it or lose it. I do contribute into that to cover some of the deductible.

tweezers

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Re: Medical deductible
« Reply #3 on: May 03, 2018, 03:37:23 PM »
My company does not have a HSA so I cannot contribute to that. We do have a FSA but it's only good for the year..use it or lose it. I do contribute into that to cover some of the deductible.

With a high deductible plan you can open up your own HSA.  It would be ideal if your company sponsored this because of FICA, but the advantages of an HSA over an FSA are still worth it.

MDM

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Re: Medical deductible
« Reply #4 on: May 03, 2018, 04:39:23 PM »
Might be worth putting your numbers into a couple of comparison tools, e.g., Health Savings Account (HSA) vs. Traditional Health Plan and the 'HDHP Analysis' tab of the case study spreadsheet.

Not all "high deductible" plans are "High Deductible Heath Plans" (HDHPs) that qualify one for an HSA, but the ones that do qualify are usually promoted as such.