High deductible insurance vs basic

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High deductible insurance vs basic

Post by Abarn » Tue Nov 12, 2019 5:06 pm

What is everyone's opinion on high deductible health insurance with a health savings account? I have the option to contribute to a HSA with a high deductible insurance plan. Considering the tax benefits and long term investment with an HSA, in a normal year I would 100% take this option. However, my wife and I will be having a baby next year and I'm trying to decide if it would be better to wait until next year to go with the HSA (maternity services other than routine prenatal care are only covered after the deductible is met). Does anyone have experience with a similar situation?

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Re: High deductible insurance vs basic

Post by dm200 » Tue Nov 12, 2019 5:35 pm

In my opinion (and experience) such a choice (for the sake of marital harmony) should be made with the full agreement of both spouses.

While going with higher deductible (and lower premiums) may be the most "logical", sometimes the spouse (wife in your case) may disagree - and feel that her healthcare/medical needs are not being taken into account.

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Re: High deductible insurance vs basic

Post by LadyGeek » Tue Nov 12, 2019 5:53 pm

This thread is now in the Personal Finance (Not Investing) forum (insurance).
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Re: High deductible insurance vs basic

Post by Lalamimi » Tue Nov 12, 2019 5:59 pm

We took the high deductible route a few years ago. Employer deposited $1200 in account each year. We met the deductible about mid year as husband had a few back surgeries. Everything from that point on was free for both of us. Then the next year, we took, and the deductible was for each of us. Not such a good deal. Got laid off March 2018, have $12000 in my HSA and have invested half of it to play with. Research the plan before you decide. If the deductible is Family, then might be a good deal with the baby coming. Otherwise, not so much. My daughter has a HDP and had baby first of year Husband has the girls on his plan. so it does not really help them but it was her only option.

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Re: High deductible insurance vs basic

Post by JBTX » Tue Nov 12, 2019 6:14 pm

It really depends on the specifics of the plan. In some cases the HDHP plan wins between total premiums and out of pockets even in the most expensive scenarios.

One area where they can get you is if you purchase tier 3 meds.

I'd do the math before making the decision.

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Re: High deductible insurance vs basic

Post by Jags4186 » Tue Nov 12, 2019 6:19 pm

You really need to do the math, compare the plans, and compare what you expect to spend.

Since you know you’re having a child, you know you’re likely going to max out your deductible and possibly OOP max. With a HDHP what does that look like compared to the traditional plan?

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Re: High deductible insurance vs basic

Post by toofache32 » Wed Nov 13, 2019 12:09 am

Regardless of the deductible amount, make sure you have that money saved away. I'm a doctor who routinely sees patients who cannot afford their deductible, sometimes with newly diagnosed cancer or traumatic injuries. Because of this, many doctors require payment of the patient's portion in advance of expensive treatment.

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