[USER]

My employer offers HSA and PPO plan for health insurance. What do yall suggest, is HSA better than regular PPO plan?

I’m trying to decide whether an HSA (Health Savings Account) or a PPO (Preferred Provider Organization) plan would be a better fit for my family.

We’re a family of four in our 40s with two kids, and we aim to balance good coverage with manageable costs.

With the HSA, we’d get tax advantages and the potential to save for future healthcare expenses. But, since it’s a high-deductible plan, I’m concerned about paying more out-of-pocket in the short term.

On the other hand, a PPO would give us more flexibility in choosing providers and likely lower upfront costs for routine care, but the premiums might be higher, and it doesn’t offer the same tax benefits.

I’d love to hear from people with experience in either type of plan for families in similar situations.

Which option has worked best for you, and what factors influenced your decision?

[Betsy]

PPO for me! Heard too many stories of people not able to see providers they wanted at all or in a timely manner when not on a preferred plan.

[Erin]

Take the better plan. Even though you are both young, you or your children could have an unforeseen medical issue.

You will be glad you have the better coverage if that should happen

[Kimberly]

Depends on the plan. At my employer the coverage is the same, minus a higher deductible. The out of pocket max is the same for both plans, and going with the high deductible the prescriptions play into the deductible.

For us we save over $12k a year by the lower premiums on the high deductible plan, even with maxing out our HSA each year.

You can invest your HSA money too – which is the only triple advantage account, and it can turn into just retirement at 65.

If you’re pursing fire and you can handle the higher deductible- go with that.

[Elie]

I always heard HSA requires a High Deductible Health Plan. Just hearing “high deductible” made me think PPO would be better because we had little kids and you never know.

When I finally opened my eyes, I compared the actual two plans. The had very similar deductibles and out of pocket maximums.

The coverages varied but from a catastrophic perspective, they were both basically the same.

Plus, my employer gives $1,000 for signing up for HSA. So finally signed up for HDHP and HSA, and love seeing it invested and growing.

[Sean]

This is a math problem. It’s only quantitative not qualitative regardless of what anyone here will tell you.

Without numbers we have no way of helping you.

[Erinn]

I carry my family on mine and I do the hdhp + HSA. I can take the premium savings and put that into the HSA, tax free, and invest it while I wait to pay expenses.

It works very very well for us.

[Kimberly]

Check the deductibles on both. Just because it’s a high deductible plan, doesn’t mean it’s higher than the PPO. That was the case with my work insurance.

Even if you have a medical disaster, HSA is better because after the out of pocket is met, you pay nothing the rest of the year. This happened to me a few years ago when I caught the big C.

I would’ve had to pay co-pays on all the specialists I had to see, but because I hit out of pocket after my 3rd ER visit, I paid nothing the rest of the year.

[Hannah]

I believe there’s a calculator to calculate this. Our provider provides one, but you might be able to find one online if yours does not I don’t know how accurate it is.

[Trevis]

I don’t have kids. But an hsa with kids seems bold since I assume that they go to the doctors a lot.

[Brian]

An HSA is not a different plan. It’s a different way to pay for your PPO. You pay significantly less each month.

Yes, you have a higher deductible but those savings from your decreased monthly contribution go into the tax advantaged account and the math works out close to the same if you use those funds to cover deductible expenses.

However, if you can just pay those out of pocket and not touch the HSA each year you continue to win as those funds grow.

An HSA has nothing to do with changing your plan providers!

[Author]

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