Author Topic: Optimizing Health Insurance Expense: Choosing between HDHP + HSA or LDHP  (Read 115 times)

Crease

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Want to get the crowd's input on how to decide whether HDHP + HSA or LDHP is best for my situation. I'm new to adulting.

I'm about to on-board with a new firm. They offer a few health care options, two of which are HSA compatible and the firm contributes $1000 towards the HSA. Here's the glitch: My wife is a student expected to graduate in May and I don't want her to have a gap in coverage while she's out of school and hunting for the right job. If it were just me, I'd dive into an HDHP + HSA model because I consume very little in health care. My wife, however, relies on multiple prescriptions, sees doctors regularly, and can be expected to have an ER visit once or twice a year. If I'm buying coverage for the both of us, does HDHP + HSA still make sense or does a higher premium lower deductible/coinsurance/oop max plan make more sense? What does a thorough cost-benefit analysis look like? I've used the HDHP Analysis tab in the case study spreadsheet (a great resource!) and it gives me a medical charges crossover point where HDHP + HSA begins to be the worse deal, but I feel the spreadsheet oversimplifies things by not taking into account the nuances of each plan.

If you were me, what steps would you take to calculate what plan makes the most sense for me and my wife financially for the next twelve months? Thanks in advance.

« Last Edit: November 14, 2017, 09:31:44 AM by Crease »

MDM

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Re: Optimizing Health Insurance Expense: Choosing between HDHP + HSA or LDHP
« Reply #1 on: November 14, 2017, 10:44:59 AM »
You could also try web tools such as Health Savings Account (HSA) vs. Traditional Health Plan, although that also makes simplifying assumptions.

There may be a canned tool that makes no simplifying assumptions and allows one the flexibility to enter unique situations.  If anyone knows of such a tool....

Crease

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Re: Optimizing Health Insurance Expense: Choosing between HDHP + HSA or LDHP
« Reply #2 on: November 14, 2017, 11:02:32 AM »
You could also try web tools such as Health Savings Account (HSA) vs. Traditional Health Plan, although that also makes simplifying assumptions.

There may be a canned tool that makes no simplifying assumptions and allows one the flexibility to enter unique situations.  If anyone knows of such a tool....

That online calculator was pretty helpful, thank you!