Yes, but until then you are parking money that you can actually use to pay for medical bills, unlike a PPO where you pay hundreds of dollars a month just to the insurance company then still need to pay a deductible anyway. Sure, a PPO deductible is lower than an HSA, and your bills should theoretically be lower as well; that’s why I said if you don’t have chronic issues or you don’t get sick often, you might be better off with an HSA. You can always switch to a PPO when the chronic issues start.
For example. In my first year at my job, I chose PPO. I was paying $400 a month. The only medical stuff I did for the year was visit a specialist twice at $35 a visit. Even if I was on an HSA and paid full price for the doctor visits, it would still be cheaper than the $4800 I paid on my PPO for the year. If I was on an HSA back then, I would’ve paid only $50 a month. If I had the same budget, then I could’ve put the rest of the $350 into an HSA tax free, and I can actually use it to pay medical bills. Also, my employer puts in $1000 for free into my HSA, so that’s an automatic $1000 less on my deductible.
scytale@lemm.ee 2 days ago
Yes, but until then you are parking money that you can actually use to pay for medical bills, unlike a PPO where you pay hundreds of dollars a month just to the insurance company then still need to pay a deductible anyway. Sure, a PPO deductible is lower than an HSA, and your bills should theoretically be lower as well; that’s why I said if you don’t have chronic issues or you don’t get sick often, you might be better off with an HSA. You can always switch to a PPO when the chronic issues start.
For example. In my first year at my job, I chose PPO. I was paying $400 a month. The only medical stuff I did for the year was visit a specialist twice at $35 a visit. Even if I was on an HSA and paid full price for the doctor visits, it would still be cheaper than the $4800 I paid on my PPO for the year. If I was on an HSA back then, I would’ve paid only $50 a month. If I had the same budget, then I could’ve put the rest of the $350 into an HSA tax free, and I can actually use it to pay medical bills. Also, my employer puts in $1000 for free into my HSA, so that’s an automatic $1000 less on my deductible.