Weigh in on HSA option

[aneel]

I've just started a new job and have a HDHP/HSA insurance option which I am strong considering.  Please see below for the details - all of your opinions and thoughts are appreciated!

Situation: deciding on insurance options for myself, husband and soon to be adopted 4 year old son
Complication: Son (healthy!) will be eligible for Medicaid as a secondary insurance until he's 18.  I know that in the case of a medical claim, primary insurance is billed first, and then Medicaid picks up the rest, not sure how this impacts things like deductibles.

Options (monthly pretax cost):
Standard PPO ($347)
HDHP/HSA ($265)
BOTH OPTIONS cover preventative at 100%

HSA details: family deductible is $5,200.  Employer will contribute $2,600 to HSA annually.

For a family with no chronic illnesses/conditions, the HSA seems like the better option, and gives more tax sheltering options.  We currently put $600/month into a taxable account, but I think we would switch at least a portion of that to the HSA if we went with this option.

Bonus points if you know how HDHP/HSA interacts with Medicaid for a dependent.  I have already learned that a dependent on Medicaid does not disqualify the family for an HSA, but little other info was searchable on the net.

TIA!

[HPstache]

I can use a spreadsheet that I have to put together a graph for you, but I need to know what the deductible is for the standard PPO and what the co-insurance (10%, 20%, ?) & max OOP is for each of the options.  Also, do you need to contribute any of your own $$$ to get the $2,600 from your employer?

[aneel]

Thank you!

I can use a spreadsheet that I have to put together a graph for you, but I need to know what the deductible is for the standard PPO and what the co-insurance (10%, 20%, ?) & max OOP is for each of the options.  Also, do you need to contribute any of your own $$$ to get the $2,600 from your employer?

The PPO deductible is $0; OOP is $4,000; coinsurance is 100% with pretty standard copays $25 (dr visit) $50 (specialist) and $100 (ER)

The employer puts in the $2,600 with no requirements of my own contribution.  Both are great options, but as a mustachian I want to choose the best :)

[HPstache]

I had to guess what your Max OOP and coinsurance is for the HDHP ($10K and 10%) let me know if this is wrong.  I have attached a graph as to what it would look like for you.  The break point is $4,000 in total yearly medical costs where the regular PPO becomes the better deal. 

Edit: Please ignore the "PPO_low" this spreadsheet is made to compare 3 different plans.  Also, I just realized I should have changed the title to "2017 Insurance compare".

Edit #2:  This does not take into consideration the tax advantages.

[MDM]

You could also try the 'HDHP Analysis' tab in the case study spreadsheet.