Author Topic: Normal Health insurance vs HDHP with HSA  (Read 810 times)

macleod7066

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Normal Health insurance vs HDHP with HSA
« on: December 13, 2017, 09:12:53 AM »
So, just a quick question on what the consensus is regarding HSA's.

Some background, current Federal Government employee, one kid, and single.  Currently a veteran so can use their health services even though they are pain to deal with, as I live an hour away from any facility that can do x-rays/mri or more advanced care. 

Currently with Blue Cross Blue Shield basic plan, that has great coverage for everything.  $558/month.  Current Copay of around $40 dollars depending on what type of care is needed.

I do go to the chiropractor every two weeks, with a $35 copay each visit.  So $910 a year in copay, at least.  I do not hit the minimum to claim health costs on taxes, over the standard deduction.

Or,

Should I switch to a HDHP plan around $300-$350 a month, but a ≈$3000 deductible for in network and ≈$5000 out of network, automatic $125 a month put into HSA by the insurer, and the ability to put in $5400 more in the HSA.

I am afraid that I am not taking advantage of the HSA, but it is hard to give up the Blue Cross for my child and myself.  Curious what you all think regarding this.


MDM

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Re: Normal Health insurance vs HDHP with HSA
« Reply #1 on: December 13, 2017, 09:10:23 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.

boarder42

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Re: Normal Health insurance vs HDHP with HSA
« Reply #2 on: December 14, 2017, 05:45:35 AM »
lets just look at it for what you told us

558/month = 6696 a year

325-125/month = 2400 per year
tax savings putting 5400 in thru salary deduct likely 25+6(state)+7.5(FICA) or 5400*38.5% tax saving 2079

total cost to be in HDHP 321 per year vs 6696 for the HDHP - and your out of pocket max on the HSA is 3k (b/c you should always stay in network.

so worst case you HDHP costs you 3321 a year vs the 6696 plus co pays you're paying now.

seems like a no brainer here. go HDHP. and max the HSA

JJsfr

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Re: Normal Health insurance vs HDHP with HSA
« Reply #3 on: December 14, 2017, 08:34:56 AM »
I am a Fed and went back to GEHA hdhp after being on standard last year because it paid 100% maternity/delivery/postnatal no deductible or copay.

BCBS is hella expensive. I would go GEHA standard over it just from a premium perspective.

I would encourage the hdhp though. I ran the calcs and even paying the full $3k hdhp deductible you are right at the cost of BCBS basic. Plus you get the $1500 pass through PLUS the HSA. I even went back to hdhp knowing I would have an operation later this year and despite maybe being out and extra $500 this year, investments will make it back next year given a maxed out HSA @ 7%.

One last thought. You will have to pay when you go to doc with BCBS. Satisfying that $3k HDHP deductible means you'll have had plenty of healthcare until you start approaching the total for BCBS without even going to the doc
« Last Edit: December 14, 2017, 08:37:22 AM by JJsfr »