High Deductible Health Plan vs PPO | WHICH SHOULD YOU CHOOSE

[@DiamondNestEgg]

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[@joeg.5669]

Excellent overview. Two things you didn't mention about the HSA. 1) If you choose to pay out of pocket and use the HSA as a retirement vehicle, once you hit age 65 you have the option of pulling the money out penalty free and it would be taxed as ordinary income similar to an IRA. 2) And even better...You can save all of your medical receipts after paying out of pocket and hold on to them for as long as you wish. Then at any point in the future you can submit them to be reimbursed from your HSA balance completely tax free.

[@DiamondNestEgg]

Thanks! And yes, you’re right - we talk about those two points in our other HSA videos!

[@Paul-GrnHil]

I retired with over $200,000 in my HSA account. Now all of my retirement Medicare expenses and deductibles are coming from that account. This is incredible peace of mind.

[@DiamondNestEgg]

Thanks for sharing

[@mr_cinna_man]

I stumbled upon this video this evening and I absolutely loved it. I just passed my CA State Exam to become a Life, Accident & Health Agent, and these topics have really begun to interest me. Thank you for sharing this information, it was a great review for me and seeing the real-life applications of PPO Health Insurance and HDHPs (and HSAs) was exciting to say the least!

[@DiamondNestEgg]

Your welcome - glad we could help & many congrats on the exam! I still remember when I passed mine 😀

[@noahiturriaga8959]

In your experience is it better to max out the contribution in an HSA at the beginning of the year or contribute to it monthly?

[@DiamondNestEgg]

Your HSA deductions are normally taken directly out of your paycheck, so most folks find it easier to just contribute monthly Also, it’s easier from a budgeting perspective and if you’re investing the money in your HSA, best practice is to invest a set amount regularly (instead of all at once), which also speaks for contributing monthly.

[@coocoocachiu]

Very thorough video! Learned a lot.

[@DiamondNestEgg]

Glad you enjoyed it!

[@KG-oe8oo]

Selecting a health plan is one of the more stressful financial decisions. For example, in my HMO plan CT scans are covered at 100% (even the contrast) but on my high deductible plan they are not covered so I have to meet my deductible and my OOP max before they are fully covered. That's an outlay of a few thousand dollars. I'm curious if your MRI did come in at what you expected.

[@DiamondNestEgg]

It did - but it was closer to the higher end of the estimate

[@coulterjb22]

Will you have any plans for an updated HDHP plan that allows an HSA account? I just signed up for a HDHP PPO with the ability to use an HSA and am starting to look for the best bank that works inside of Schwab (seeing and managing/transfering funds in the Schwab portal)

[@christiemcpeters3604]

Great video - thank you for sharing!

[@DiamondNestEgg]

Glad you enjoyed it!

[@JuanMejia-md8re]

Does having health insurance for the family put you on a lower tax bracket for having it?

[@FighterFlash]

This what I think of when I ski.

[@DiamondNestEgg]

Or in my case, ski better - my 9 year old & everyone else faired much better

[@god.love.music.6808]

Thanks so much for making this so much easier to understand! I just stepped into a new job and I am new to the world of benefits and choosing a healthcare plan. I love the option of the HSA with an HDHP plan. I am fairly young and don't go to the doctor often. However, I definitely don't have a well funded emergency fund and I am sensing some health issues. I would love to take advantage of the HSA, but is it wise without an emergency fund? Are there payment plan options if one cannot afford say, an MRI expense of $1,500?

[@DiamondNestEgg]

Generally-speaking, as I mentioned in the video with the questions to walk through & help you decide, the HDHP + HSA option are best suited for/ maximized by those with a well-funded emergency fund & no significant upcoming health procedures/ issues. With regard to the payment plan question - some places do offer this, but it's not a requirement so you'd need to check with the facility beforehand.

[@god.love.music.6808]

@@DiamondNestEgg Got it. Thanks for replying and for the info!

[@AnthonyStromDesign]

If my employer doesn't offer HDHP, how do i go about shopping for HDHP on my own? Or am i just out of luck?

[@patryk65]

What if the PPO being offered has a higher deductible than the HDHP?

[@DiamondNestEgg]

You might want to look at the PPO provider network, copay, coinsurance, etc. Perhaps your PPO is better in these areas & that’s how they justify the higher deductible. All things being equal though, if the PPO is more expensive on a monthly basis AND the deductible is higher, there would be little reason to go for that over an HDHP.

[@pinkorganichorse]

Can you invest heavily money in ibonds?

[@DiamondNestEgg]

The annual limit is currently $10K per SSN/ EIN, but there are ways to buy more if it works for your circumstances. This video should provide more clarity: kzbin.info/www/bejne/jYHGgqWPgd9kqMU

[@veznha]

I need help. For the past 5 years my husband and I have been on a HDHP plan with HSA(employer gives a monthly contribution of $50) we pay $156/month (deductible of 3,000/fam and 9,000/fam for out of pocket). Within these 5 years my husband had a kidney transplant and has medication that he’ll be on for life as well as regular Dr visits and specialist visits. Lately we’ve been thinking about having a child and whether or not we should switch to an PPO. The PPO would cost us $216 per month (2,400 deductible/fam and 12,400 out of pocket/fam) Can you help me decide or what should I be focusing on. I’m so lost and scared of change but the PPO would be about$35 for copay at Dr so it sounds like it might be better bu

[@florenciadionglay9587]

Hi! Im pregnant so it wouldn’t be convenient to get a hdhp?

[@DiamondNestEgg]

Typically, if you haven't met your deductible, you'll have to pay for all your medical costs out of pocket.

[@mariaquintero6035]

PPO if you’re pregnant

[@fenaprajapati6195]

@@mariaquintero6035is it? During pregnancy ppo is better than HDHP? Please advice me

[@josephjuno9555]

I plan to Retire in July i will have Blue Cross smart health thru end of July. Need HealthCase? I'm 61 so need Private insurance. I don't qualify for Obamacare Subsidies becuz employer offers Corbra and had income >$60K. I want to Travel Alot thru USA Canada and possibly Iceland maybe Europe? Was not offered HDHC So do Not have HSA. A. Single, Healthy, No Meds, rarely do to Dr but did need hernia surgery last yr. I am USMC Veteran But don't know what VA Offers? Especially when traveling out West USA? I Lkve in Michigan. HealthCare is my biggest ?? and $$$ going into Retirement?

[@chellefranc]

Fantastic information!!!! I have been stressing about which plan to choose and your video made it much easier to understand 🙌🏾…I have started a new job last month and had been on Medicaid after being laid off during the pandemic 😷…however Medicaid is being extended until further notice but my Job is urging us to enroll, also I am expecting baby # 4 next March, have 3 other children ages 16, 9 and 2 and we are relatively healthy don’t need meds or have chronic conditions, we only visit the doctor for annuals but having children is always a chance for unexpected Dr visits, my husband also has his own HDHP plan via his job, however I am looking to keep as much of my paycheck as possible for our living expenses. with what I have learned on this video I am sensing that a PPO plan would fit best is that right? Or how would you recommend we should “divi-up” our plans …in example should we take 2 kids each and add them or all of us get on one plan etc…?

[@DiamondNestEgg]

Based on what you've told me, it seems your older two children are fairly healthy, so it's really baby #4 is and your two-year old that will be keeping medical expenses high in 2022. We have four young-ish kids also and our pediatrician's office was like their daily playground in the early years. Without knowing more details about your health insurance plans and finances, I would say this - generally speaking, the PPO sounds like the way to go for you and the younger two, at least in 2022. The premiums on a PPO will usually be more expensive than an HDHP though, because the deductible is lower, so if you find after the birth of baby #4 that everyone is truly healthy and doctors visits are few, you may want to reconsider an HDHP for the entire family, especially if you and hubbie have a decent amount of savings to cover unexpected emergencies - because you can then also open a triple-tax-advantaged health savings account (HSA) if your HDHP is HSA-eligible. Check out the recent HSA videos on this channel to see why we love the HSA - it's one of the main reasons we have an HDHP.

[@chellefranc]

@@DiamondNestEgg wonderful this is super helpful and I truly appreciate you dearly for replying back. I will go and begin my enrollment process with confidence and a clear mind now! ….

[@ndtgroup]

very informative! thank you!

[@DiamondNestEgg]

Your welcome!