HMO & FSA vs High Deductible & HSA Company Provided Medical (insurance, luxury)

[cenizo22]

Most companies are in open enrollment now (through the end of November) for the 2019 year. For those of you who still have the luxury of the employer offering medical insurance, which one do you think offers the most advantages?

HMO + FSA
PPO + FSA

or HSA (high deductible + health savings account)

hope that people familiar with this dilemma can comment and provide some feedback.

Thanks!!!

[twingles]

I would not go with a high deductible plan with kids - you're guaranteed them needing surgery or something. I think it's great for single people or people with no kids. With my employer the difference in price isn't great enough to justify the risk. Our benefits are pretty inexpensive so I just go with the PPO 80/20 plan for the family.

[DonaldJTrump]

I choose HSa because it lets me deduct from my pay pretax 3500/ year of which 500 is contributed by my employer . This defers some income taxes. Premiums are lower . I get to keep my HSA balance every year, and even if I leave the company. I can use the HSA for all qualifying medical, dental, vision expenses.

[markjames68]

The best way is to do the math for both. If you don’t use it much a high deductible plan is cheaper, especially with a HSA where you can bank funds for the unexpected time you do need it.

I agree that with kids you will go to the doctor more and a PPO is better.

But even PPOs are getting expensive with higher deductibles and co-insurance.

[Bossman140]

My company reintroduced the PPO plan this year. Was eliminated 2 years ago for a “basic” High Deductable Plan and an “enhanced” HDP. Unfortunately, the PPO is very expensive for family coverage. If I stay on the HDP with the FSA, my company will contribute $1000 to the FSA. The family deductable is $4000/year. I’m going to cover the $3000 tax free into the FSA.

This is where it gets tricky. Doing it the way I plan costs close to just doing the PPO. My reasoning for doing the HDP with FSA is that the $$$ I put into the FSA is mine to keep. If I need to use it, it’s there. God willing we don’t need it and it carries over to the next year. With the PPO, I pay out the premium whether or not we need to use the insurance. To me, saving the $$$ in an interest bearing FSA is the better business move.

[gx89]

Originally Posted by Bossman140

My company reintroduced the PPO plan this year. Was eliminated 2 years ago for a “basic” High Deductable Plan and an “enhanced” HDP. Unfortunately, the PPO is very expensive for family coverage. If I stay on the HDP with the FSA, my company will contribute $1000 to the FSA. The family deductable is $4000/year. I’m going to cover the $3000 tax free into the FSA.

This is where it gets tricky. Doing it the way I plan costs close to just doing the PPO. My reasoning for doing the HDP with FSA is that the $$$ I put into the FSA is mine to keep. If I need to use it, it’s there. God willing we don’t need it and it carries over to the next year. With the PPO, I pay out the premium whether or not we need to use the insurance. To me, saving the $$$ in an interest bearing FSA is the better business move.

I would comfirm this, FSA does carry over to the next year. Usually its only until end of march then you loose it.

[markjames68]

Originally Posted by gx89

I would comfirm this, FSA does carry over to the next year. Usually its only until end of march then you loose it.

FSA gets lost. HSA carries over.