Should I go to the HDHP?

[Diolla]

Right now I have traditional Health Insurance for me and DS.

My job offers a HDHP (High Deductible Health Plan) with a HSA

Heres the rundown- Current Health Insurance costs $168 a month
HDHP costs $84 a month

Current HI has no deductible but a 20% co-pay on most things and a $20 co-pay on office visits

HDHP has a $3000 deductible, 20% co-pay to $10,000, 1 free check-up per year including preventative tests

I can contribute up to $136 a month to the HSA my emplyer contributes $114.

Last year, including a trip to the ER, some once in a lifetime tests and prescriptions, my out of pocket was @$700 if the insurance company had not paid their part it would have been about $2000 (prescriptions are not under my HI but a lousy rider to it)

So assuming a similar year to the one past (although I hope not) I would still have $1000 in my HSA, $1300 paid by my employer for about $52 a month more than now. Plus if I paid some of the less expensive things without my HSA I could save up in there for my later years when health insurance and medical needs will be greater.

I have enough in my EF to cover it if worst case happened and I needed the whole deductible.

Any Advice?

[Broken Arrow]

I don't have any advice, but my last insurance was in the process of switching to an HDHP system. The way it was worked out was not as favorable for me.

I don't remember much now about it now, but I remember it had to be kept in their own savings account, and if you didn't use it by the end of the year, you lost it! And despite the tax shelter, the interest rate was pitifully low.

Suffice to say, I didn't go with mine.

[Diolla]

We have a FSA (Flexible Spending Account) that is a use it or lose it. The HSA would not be that way I could roll over the amount left from year to year to be used for future expenses.

[MonkeyMama]

I wouldn't. Overall I don't find HDHPs to be good deals at all.

It's an odds game though. The odds could work to your favor. It's hard to say not knowing you better. For one, you say you have enough EF for the worst. For how long? What if you were diagnosed with cancer and needed pricey treatments the rest of your life? It is hard to switch back to fuller coverage once you develop a condition. & you would no doubt be using your deductible over and and over again, annually, if you developed some awful condition. Just some food for thought. Considering the what-ifs and the fact you would only save $84/month, eh. I think your employers contributions make the HDHP a little more appealing. But beyond that, I wouldn't even consider it.

[jIM_Ohio]

Right now I have traditional Health Insurance for me and DS.

My job offers a HDHP (High Deductible Health Plan) with a HSA

Heres the rundown- Current Health Insurance costs $168 a month
HDHP costs $84 a month

Current HI has no deductible but a 20% co-pay on most things and a $20 co-pay on office visits

HDHP has a $3000 deductible, 20% co-pay to $10,000, 1 free check-up per year including preventative tests

I can contribute up to $136 a month to the HSA my emplyer contributes $114.

Last year, including a trip to the ER, some once in a lifetime tests and prescriptions, my out of pocket was @$700 if the insurance company had not paid their part it would have been about $2000 (prescriptions are not under my HI but a lousy rider to it)

So assuming a similar year to the one past (although I hope not) I would still have $1000 in my HSA, $1300 paid by my employer for about $52 a month more than now. Plus if I paid some of the less expensive things without my HSA I could save up in there for my later years when health insurance and medical needs will be greater.

I have enough in my EF to cover it if worst case happened and I needed the whole deductible.

Any Advice?

HDHP will benefit you if

a) you don't see the doctor very much
b) you can "over contribute" to HSA
c) you can handle high out of pocket expenses until deductable kicks in

[Diolla]

I wouldn't. Overall I don't find HDHPs to be good deals at all.

It's an odds game though. ... What if you were diagnosed with cancer and needed pricey treatments the rest of your life? It is hard to switch back to fuller coverage once you develop a condition. & you would no doubt be using your deductible over and and over again, annually, if you developed some awful condition. Just some food for thought. Considering the what-ifs and the fact you would only save $84/month, eh. I think your employers contributions make the HDHP a little more appealing. But beyond that, I wouldn't even consider it.

1-If I was diagnosed with something and could still work I could switch back next open enrollment period. If DS was dignosed with something I could switch back next enrollment period.

2-If I was diagnosed with something and could not work then I would go on LT disability and my employer would not contribute to HI and the traditional plan would be >$400 a month but I could still switch back next year.

3-If I lost my job (as in fired/laid off), unlikely since I am senior in my section and in Gov't, then my HI would COBRA at the above rates. I would probably be out of luck.

Worst case senario would be the $3000 deductible + 20% of 10,000 or $2000 for a total out of pocket of $5000. I could do that twice easily but if it happened I would probably switch back to the traditional.

I know there is a risk here...but I am thinking that if I could just stay healthy for a few years I could be ahead in the game when I retire in 8-10 years at 55.

Also I would not save $84 a month, I would save $84 a month and get $113 a month deposited in my HSA for my use. So $1350 of the above worst case scenario would be paid by my employer.

Reading this it seems as if I have already made up my mind. I really haven't but I am leaning towards it. I am worried there is something I haven't thought of. I am not a very cautious person by nature and I tend to find the arguements that support my position and not the ones that don't.

So please all comments are welcome.

[debtfreeme]

are you absolutely sure you don't have to use the mney in teh HSA by march of the following year and that you can just let it sit?

What happens when you leave your company, do they allow you to keep teh funds or lose them? (I lost mine when i left my company with a similar plan set up.)