High Deductible Vs. Low Deductible Health Insurance Plan Basic Questions.?

[johnpau]

Our employer is changing health plans from next year.

Does it make sense to pick high deductible plan and pay less monthly premium. And then save monthly in HSA account and pay for medical bills from HSA account. In case you don't utilize the funds in HSA account, you can rollover to next year. Compared to picking less deductible plan and paying more monthly premium. But if we don't have much medical bills we loose all the money what we paid in monthly premium. Atleast in the high deductible we can save the money in HSA. Use now or next year.

For both plans when we add up the monthly premiums + out of pocket max both are same numbers. So wondering would it make sense to pick High deductible plan and pay less monthly premiums. And the savings in monthly premiums will deposit in HSA account. This way tomorrow when we pay high deductibles will use HSA account.

Let me know if I'm correct or missing something.

 

[Corpuschristi]

You are correct, HSA can save lots of $$$ and the unused dollars roll over the following year. You must spend the money on eligible medical expenses
http://www.hsabank.com/~/media/files/eligible_medical_expenses
and you can use it as a savings vehicle for retirement. If you withdraw cash before age 65 you will subject to a penalty plus it is taxed as income, after 65 you can withdraw without penalty (but still taxable).

 

[Michelle Chase]

I can truly help here. let me know if you would like to discuss further and we could share the outcome with the group.