High Deductible vs PPO?
I was on PPO last year with UHC and had a 500 Deductible. My last year stats - Total billed - 2000 Out of pocket - 635 Thinking of switching to High Deductible plan. It has a 2k deductible and HSA account where Cisco puts in 600. I am planning to put 1400 pre tax ~ (860 post tax) into HSA to buffer for deductible costs. Anything I should be concerned about?
HDHP is pretty great if you’re pretty confident in your health going forward. I think you can also invest some amount of the funds in your HSA after a certain point which is cool. It really all depends on your situation though. I usually go with a PPO because it gives me peace of mind and flexibility even if it is a bit more expensive.
PPO. Don’t mess with insurance. I knew one guy who spent thousands after he got sick and had a high deductible plan.
it really depends. the peace of mind with ppo is also worth something imho. With HDHP you spend way more time and research on whether a certain doctor visit is worth it which in itself can be stressful. Speaking from experience. I just switched my employer and chose HDHP and put max contribution into the HSA but will switch back to PPO next year. It's imho good compromise to do it that way. I get all the tax benefits of HSA without actually being in HSA most of my life haha.
HSA is another deferred tax vehicle, if you have maxed out 401k contribution.
I just go HDHP, then I get really drunk and stupid (and usually impaled) on NYE after 12 so that I meet my deductible for the year and don't need to worry for another 364 days (although I'm usually out of the hospital with ~100 days left in the year).
Most HDHP options at larger companies are set up so that you "win" if you max the out of pocket less often than every other or every third year. You'll need to have more cash on hand to cover the out of pocket costs if needed but you'll usually save money overall due to lower premiums if you're generally healthy.
Don't get injured