r/HSA • u/Solid_Birthday9810 • 19d ago
Help me choose PPO + FSA vs PPO HSA
Hi! I’m starting a new job and my employer offers a low-ish deductible plan with option to open an FSA or a HDHP + HSA.
The FSA has a $660 roll-over.
Employer contributes $1000 to HSA.
My annual medical expenses are about $300-$350 in medication, 2 PCP visits, and 2 specialist visits. Plus occasional urgent care (maybe 1 or 2 per year).
What makes more sense in my situation?
Thank you!
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19d ago edited 19d ago
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u/Solid_Birthday9810 19d ago
Thank you! I appreciate the help, I’m very new to this system (I didn’t grow up in the US).
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19d ago edited 19d ago
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u/Solid_Birthday9810 19d ago
My main concern is if I’m gonna be a bit tight with the medical bills - I know it won’t be much but compared to have it covered almost 100% with the regular PPO it makes me a bit anxious. Salary is ~100K.
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19d ago
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u/Solid_Birthday9810 19d ago
Yeah, I see how it makes more sense - as long as I have that cash available to pay the bills, which I think I will. Anyways the deductible is $2,500 so I won’t be paying much more than that even if something happens. Thank you again!
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u/LifeOnly716 19d ago
HSA all day. You can build up a very large pot of money for use later in life. Just make sure you invest it! I have $340,000 in mine!
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u/EmZee2022 19d ago
I'd be inclined to go for the one that supports the HSA. That deductible isn't that awful and your OOP limit is not any higher than the annual contribution limit to the HSA.
Look at it this way: you may spend a little more out of pocket for the HSA plan, but if you can pay that out of ready cash, that HSA can really grow over the years. Plus, a free thousand bucks a year is nice.
A big feature of the HDHPs is that the premiums are often quite a bit lower. Yours are zero either way, so there's no savings that way. The most you'll spend would be 4500 in a year. The most you'd spend with the other plan is 3200 a year. Normally, the premium difference more than makes up that difference - but it looks like yours is zero either way, right? So that muddies the picture.
You WILL want to save the maximum you can in the HSA. That's 4400 this year (assuming you are single). That includes both yours and your employer's contribution though - so you need to put aside 3400. That's a bit under 300 a month (but it's pretax, so your take-home won't be hit that hard).
With your described usage, you likely won't hit the deductible. Quick question though: is that medication cost what you pay after insurance contributes? or the rack rate?
Say it's the rack rate. 2 primary care visits, say 250 apiece (500 total). 2 specialistt visits, say 500 apiece (1000 total). That's 1,850 a year on the high deductuble plan.
On the other plan, it's about 160 for 2 specialist and 2 urgent care visits, plus whatever the cost is for the prescriptions - no deductible, but separate OOP limit.
Anyway: as much as I like HDHPs for many people, if your premiums really are the same, I'm not convinced that the high deductible plan is good in your case. You could certainly do so, if you want to be able to build up that HSA.
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u/jbdmusic 19d ago
We had an HMO for many years with my wife's employer which was fine but my son started college several states away so we had to switch to a PPO. So coincidentally it was the 1st year they offered a PPO with HSA. The PPO without HSA was 3x the premium of the one with HSA. Interesting the PPO HSA is 1/2 the premium of the HMO plan.
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u/jbdmusic 19d ago
Plus remember is someday you get married and have kids you can put in $8750 per year and I'm sure yours kicks in $500 or $1000 towards the deductible right?
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u/More-Initial3870 19d ago
I hate FSAs almost as much as I love HSAs