re: HSA vs. PPO? Sell me on HSA

Sometimes, they make a lot of sense. HSA isn't an insurance plan, an HSA is a special savings account used in conjunction with a High Deductible Health Plan (HDHP). So it depends on how good the HDHP is, and how sick you are.

I was part of one in the past that had a $1500 deductible, and my employer put $750 each year into an HSA for us. I put in another $750. So basically, we had to pay for the first $1,500 in medical expenses, which we used the HSA for. After the deductible, the insurance company paid 100 percent of the medical expenses. It was a great plan.

If you are young and single and healthy, HDHPs can be great, especially if your employer will match some of your HSA contribution.

I have two young kids, and we are in a PPO plan. We had an option for a HDHP, but the family deductible was like $6,000. And, the premium wasn't much cheaper. Kids always get sick, break their arm riding a bike, etc.

Talk to your benefits company and see if they have a calculator available to play out different scenerios and see how it goes. If the premium differece is huge, use that premium difference to fund the HSA, and you might come out ahead.