100tnouccayawaworht t1_iyadoxo wrote on November 29, 2022 at 10:51 PM

Reply to comment by zk2997 in I don't see the point of my employer's HDHP /w HSA compared to the PPO plan by zk2997

Typically, HSA plans start looking really good when (a) the company gives you a lump sum of money towards your account and (b) you are already maxing out your 401k and are looking for additional ways to invest your money and shelter taxes.

Your plan (if you are correct on everything) seems fairly unique to me (not that I have a ton of experience).

The difference in PPO and HSA cost per paycheck where I work is $100s per paycheck. They contribute a large sum to our account. And, the MOOP is fairly similar.

With all the above in mind, for me the HSA will about break even. But, I am also maxing my 401k, so the HSA will allow me to "save" even more.

In your case, the PPO might indeed be "better" for you.

Like all things "personal finance" it is indeed a "personal" thing that needs to be looked at on an individual basis.

Good luck!

zk2997 OP t1_iyae82i wrote on November 29, 2022 at 10:55 PM

Thanks. Really good reply. I’ve only ever had benefits at this company so I have nothing to compare it to. I didn’t realize that there’s usually a very high discrepancy in premiums.

The numbers seem better for the PPO plan and I’m also pretty far from maxing my 401(k), so I think I should focus on that goal first. I can definitely see how an HSA would be a good way to “boost” pre-tax savings beyond that though.

AustinLurkerDude t1_iyaqt2b wrote on November 30, 2022 at 12:26 AM

When I first started working my current company, the PPO had a $0 deductible and $10 co-pay. Now the deductible is almost as much as the HDCP plan and the premium is 2-3X the HDCP plan.

There's no set and fast rule on which is better because there's no consistency in the plans between companies. Really messed up system designed to lock you into an employer.