Author Topic: HSA vs PPO for Pregnant Wife  (Read 1785 times)

jp12687

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HSA vs PPO for Pregnant Wife
« on: October 15, 2017, 07:52:01 AM »
Hey,

My wife and I are trying to get pregnant right now and the option to switch from our expensive work PPO plan to a lesser HSA plan is on the table.

Facts:

PPO--
$264 a month
$700 Deductible
$5,900 out of pocket max
$25 copay Office
$40 copay specialist
Lab Services/Hospital Services tend to be 20% after deductible
FSA we can put $2900-ish into a year

HSA--
$192 a month
$3000 Deductible
$10,000 Out of pocket max
20% After deductible for everything
Company kicks in $1000 a year to HSA
We could contribute the max to the HSA for tax deduction purposes

Based on current tax laws we are in the 33% tax bracket

Our question is with the upcoming birth-- and if there are any complications which plan makes more sense for us? In my head with the tax savings, cheaper plan, and kick from her company its pretty much a wash? But wanted to get some better advice besides what my gut tells me :)

Let me know what other questions are needed to be answered to figure this out!

thanks

Josh

MDM

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Re: HSA vs PPO for Pregnant Wife
« Reply #1 on: October 15, 2017, 08:19:41 PM »
With some assumptions, it appears the HDHP will be favorable unless your gross medical expenses are extremely high:



See the 'HDHP Analysis' tab in the case study spreadsheet to enter your own numbers.

Acastus

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Re: HSA vs PPO for Pregnant Wife
« Reply #2 on: October 16, 2017, 10:09:51 AM »
A normal birth, with no complications, can easily cost $15k. The PPO may cover this for 1k, but the HSA will be at 20%. You are probably better off with the PPO if you are sure of large costs.

But you don't know yet, right?