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Is HSA right for me?
I'm a new comer to the USA. I enrolled into the Aetna HDHP PPO plan for self and family on August and my HSA was opened with it.
The deductible is $3,000/year for the family. As a new comer I totally have no idea how much my medical expense will be every year. Both I and my wife are young, we have a baby that is very healthy (at least for now). It seems to me that the $3,000 deductible is way too high as I can't forsee a need of $3,000 medical expense in 2008/2009. The only advantage I can think of is HSA is tax-free and it could save some money if I will spend a lot of money on medical stuff in the future.
I wonder if HSA is right for me and if I should change my plan to a traditional PPO plan. Can anybody give me some suggestions here?
The deductible is $3,000/year for the family. As a new comer I totally have no idea how much my medical expense will be every year. Both I and my wife are young, we have a baby that is very healthy (at least for now). It seems to me that the $3,000 deductible is way too high as I can't forsee a need of $3,000 medical expense in 2008/2009. The only advantage I can think of is HSA is tax-free and it could save some money if I will spend a lot of money on medical stuff in the future.
I wonder if HSA is right for me and if I should change my plan to a traditional PPO plan. Can anybody give me some suggestions here?
MEDICAL PROFESSIONAL
Dear cocreateguid,
Quite frankly most plans (including the one you have), have some sort of a cap or limit on member’s out of pocket exposure; so in the big scheme of things, if one ended of with a $500K bill, your plan will work very similar to a traditional PPO plan with first dollar coverage.
You have to keep in mind that even though HSA qualified plans generally don't pay for the first several thousand dollars of health care expenses (with the exception of preventative care); they “should” significantly reduce your premiums & save you money.
If you can get a more comprehensive plan with a lower deductible for the same premium, then by all means get the more comprehensive plan. But if the HSA premiums are lower, then you can deposit your premium savings into a Health Savings Account (HSA) to be used for the "first dollar" expenses. If you do not have claims greater than the amount deposited, the money can be invested for future claims.
I also wanted to encourage you to make sure that your $3000 deductible is in fact a family deductible.
Please let me know if this helps you or you need further clarification.
Sincerely,
Amir Mostafaie
Quite frankly most plans (including the one you have), have some sort of a cap or limit on member’s out of pocket exposure; so in the big scheme of things, if one ended of with a $500K bill, your plan will work very similar to a traditional PPO plan with first dollar coverage.
You have to keep in mind that even though HSA qualified plans generally don't pay for the first several thousand dollars of health care expenses (with the exception of preventative care); they “should” significantly reduce your premiums & save you money.
If you can get a more comprehensive plan with a lower deductible for the same premium, then by all means get the more comprehensive plan. But if the HSA premiums are lower, then you can deposit your premium savings into a Health Savings Account (HSA) to be used for the "first dollar" expenses. If you do not have claims greater than the amount deposited, the money can be invested for future claims.
I also wanted to encourage you to make sure that your $3000 deductible is in fact a family deductible.
Please let me know if this helps you or you need further clarification.
Sincerely,
Amir Mostafaie
Thank you, doctor. This is indeed helpful.
I meant I want to know if I should change my plan to a traditional PPO plan with LOWER DEDUCTIBLES (e.g. $1,200 instead of $3,000) while the monthly premium keeps basic the same (let's say $200 per month).
Which one is better if I have about $2,000 medical expense every year?
Which one is better if I have about $2,000 medical expense every year?
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