ASA CDHP going up $700 next year for families? Switch back to ppo?

[gator_hater]

Enuff,

If your current dr is a UHC network guy you're good nothing changes. Get out some eob statements (available online if needed) and run a comparison for your own situation. You might be surprised at the $$ the CDHP could save.

 

[Nevets]

It may make financial sense for many IF you are able to pay the entire deductible out of pocket the day the policy becomes active. Just keep that in mind.

 

[homerjdispatch]

It may make financial sense for many IF you are able to pay the entire deductible out of pocket the day the policy becomes active. Just keep that in mind.

Most hospitals and Dr. Offices will put you on a payment plan if you CANNOT pay all at once... You can pay over time with the money as it goes into your HSA account.

I have been on the HSA for the past two years... We have had a baby, three surgerys, and a lot of Dr. visits.. I did the math and found out we saved over $3000 on the CDHP insurance.

 

[Nevets]

Most hospitals and Dr. Offices will put you on a payment plan if you CANNOT pay all at once... You can pay over time with the money as it goes into your HSA account.

I have been on the HSA for the past two years... We have had a baby, three surgerys, and a lot of Dr. visits.. I did the math and found out we saved over $3000 on the CDHP insurance.

Good point. And just to add, you should be financially able to pay the full deductible EVERY year you're on this policy. Personally, I don't like debt. But everyone is different in their level of risk.

 

[79%N1]

Good point. And just to add, you should be financially able to pay the full deductible EVERY year you're on this policy. Personally, I don't like debt. But everyone is different in their level of risk.

With the difference saved in premiums you keep more than enough money to pay the deductible. The company's $1000 plus the difference between $380 in monthly premiums for the PPO and $107/month on the HSA gives you $4300 in my paycheck (or saved the HSA account if you wish) that I never saw on the PPO premium. And you'll never get a bill for $2600 all at once on the HDHC plan on day one.

 

[79%N1]

curious... do you have to go to specific doctors? I have the PPO now, like my dr but am rarely sick.

If that Doctor was in the UHC network for the PPO, he is in it for the HDHC plan.

 

[Nevets]

With the difference saved in premiums you keep more than enough money to pay the deductible. The company's $1000 plus the difference between $380 in monthly premiums for the PPO and $107/month on the HSA gives you $4300 in my paycheck (or saved the HSA account if you wish) that I never saw on the PPO premium. And you'll never get a bill for $2600 all at once on the HDHC plan on day one.

I didn't know the company was contributing $1000 into your HSA, if that's what you're saying. But you also make a good point about banking the difference in premiums. I would do this up to the out of pocket maximum, at the very least, to begin with and keep replenishing it to that level as time goes on. Of course, you should be able to pay the full deductible starting day one, which the company contribution would help do. Out of curiosity, what is the family deductible and out of pocket maximum

 

[79%N1]

Roughly $2400 and $6000

 

[Nevets]

Roughly $2400 and $6000

So assuming they contribute another $1000 to your HSA next year, it would take 15 months to have $6000 in your HSA IF you contribute the difference in premiums ($273/month) to your HSA. Have they said what their contribution commitments are?

 

[79%N1]

I suppose. I've never been worried about that. If I have a Doctor visit, I either pay with whatever may be in my HSA account, or make up the difference with my bank account, knowing that I save over $250/month in premium payments. My daughter fell and hurt her arm, we went to the doctor. the visit and x rays were about $200. I figured it was still less than I would have paid that month in PPO premiums. Hopefully, nobody falls down or gets sick every month.

 

[Stifler's Mom]

Also, your contributions to your HSA account are with PRETAX money. That's another bit of savings versus using your paycheck money.

 

[FishandFly]

As more people realize this is a better deal than the ppo, I hope that xjet keeps our premiums low rather than banking the profit and getting us to pay as much as they think we are willing to pay.

It won't take many $700/year increases in the cdhp for it to be a bad deal. In fact I believe those who have a catastrophic issue reaching max out of pocket are now within a few hundred dollars of this plan being equal to the ppo.

 

[wms]

I went back to the ppo after two years and I'm glad. You get the same tax benefit if you set the money aside on your own and claim the deductions on your taxes. The prescription copays are what did it for us. What was once a ten dollar cream went to $400 for a month supply.

 

[Nevets]

I suppose. I've never been worried about that. If I have a Doctor visit, I either pay with whatever may be in my HSA account, or make up the difference with my bank account, knowing that I save over $250/month in premium payments. My daughter fell and hurt her arm, we went to the doctor. the visit and x rays were about $200. I figured it was still less than I would have paid that month in PPO premiums. Hopefully, nobody falls down or gets sick every month.

You just have to keep in mind that if, God forbid, you or a family member comes down with a chronic illness, you may have to pay the full deductible and even the full out of pocket maximum.

Also, your contributions to your HSA account are with PRETAX money. That's another bit of savings versus using your paycheck money.

The company contributions are. Your contributions are as well but you have to file a special form with your taxes to get the deduction. It's an above the line deduction so you don't need to itemize to benefit from it. If you don't get the HDHP, you can still realize the pretax advantage by participating an a FSA. The drawback being that it's a use it or lose it deal unlike HSAs.

As more people realize this is a better deal than the ppo, I hope that xjet keeps our premiums low rather than banking the profit and getting us to pay as much as they think we are willing to pay.

It won't take many $700/year increases in the cdhp for it to be a bad deal. In fact I believe those who have a catastrophic issue reaching max out of pocket are now within a few hundred dollars of this plan being equal to the ppo.

On the XJT side, the premiums are capped at 25% of the total.

So it's $700/year and not $1000? How many years have they committed to contribute this amount?

I went back to the ppo after two years and I'm glad. You get the same tax benefit if you set the money aside on your own and claim the deductions on your taxes. The prescription copays are what did it for us. What was once a ten dollar cream went to $400 for a month supply.

Should have worn some protection.

 

[FishandFly]

My reference to $700 was the amount that they increased our premium next year (for families).

The 1k contribution (well really $250x4) is in effect down to $300 now. My bet is that they will raise the premium again next year as well and that will mean we are completely self-paying even though they still try and make it look like they are "giving" us 1k a year.

 

[wms]

Some large companies like the hdhp so much they pay 100% of the deductible. Smart since many ppl don't ever go to the doctor. The problem at inc is they are more worried about the bottom line than what makes sense, due to large shareholder pressure.

 

[79%N1]

You just have to keep in mind that if, God forbid, you or a family member comes down with a chronic illness, you may have to pay the full deductible and even the full out of pocket maximum.

Thats true under both plans. Under the PPO, if you had, say a car accident, you will still be charged at 80/20 to your max out of pocket, which is about the same. The bill for your out of pocket charges for something like that will be nearly identical.

 

[Nevets]

Thats true under both plans. Under the PPO, if you had, say a car accident, you will still be charged at 80/20 to your max out of pocket, which is about the same. The bill for your out of pocket charges for something like that will be nearly identical.

I guess I should have asked what the out of pocket maximum is for the regular plan is. But with the HDHP you still have to pay the full deductible FIRST and then pay your 20% up to the out of pocket maximum.

 

[79%N1]

That's true. But when it is all said and done, you will have paid the same amount out of you pocket for any illness/injury. The question is, how much do you save if you DON'T have any major illness or injury. Since you pay the same amount if you do have one, it seems like the choice is easy.

 

[Nevets]

That's true. But when it is all said and done, you will have paid the same amount out of you pocket for any illness/injury. The question is, how much do you save if you DON'T have any major illness or injury. Since you pay the same amount if you do have one, it seems like the choice is easy.

It depends on the out of pocket maximums of the plans you are comparing. What are they?