PPO vs HSA high deductible | TigerDroppings.com

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The Future
Iowa State Fan
Smallville, KS
Member since Oct 2009
22661 posts

PPO vs HSA high deductible


Background info:

I'm a single 22 year old guy with little health issues, no dependents, and the company funds 100% of healthcare.

The plans are through BCBS

If I choose the HSA, the company puts 179 a month into an account for me to use for my co-pays and such.

Not quite sure how the whole insurance thing works as far as PPO, HMO, etc.

What would be best for me in y'all's opinion?







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makersmark1
Auburn Fan
Member since Oct 2011
1405 posts

re: PPO vs HSA high deductible


The HSA may let you convert unused funds to IRA, but check on this.

I would go HSA in your situation I think.






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11349 posts
 Online 

re: PPO vs HSA high deductible


HSA, DEFINITELY. especially if you can roll the funds over.





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The Future
Iowa State Fan
Smallville, KS
Member since Oct 2009
22661 posts

re: PPO vs HSA high deductible


quote:

HSA, DEFINITELY. especially if you can roll the funds over.


You can, my boss said he racked up about 5-6 grand






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ZereauxSum
LSU Fan
Lot 23E
Member since Nov 2008
7908 posts

re: PPO vs HSA high deductible


Would have to know how much the deductible, premiums, and what % you are responsible for in each plan, but in general the HSA is usually the correct choice for a single person who is in good health.





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Siderophore
LSU Fan
Member since Nov 2010
3334 posts

re: PPO vs HSA high deductible


Your situation is the poster of the one where you should do a HSA/HDHP





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Siderophore
LSU Fan
Member since Nov 2010
3334 posts

re: PPO vs HSA high deductible


quote:

HSA, DEFINITELY. especially if you can roll the funds over.


I don't know if you can roll it over, but I do know after 55 you can treat it as an IRA.

Withdraw for anything and pay income taxes, or withdraw for medical expenses tax free.






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11349 posts
 Online 

re: PPO vs HSA high deductible


quote:

I don't know if you can roll it over, but I do know after 55 you can treat it as an IRA.

Withdraw for anything and pay income taxes, or withdraw for medical expenses tax free.


I can with mine, but I'm on a private plan, may be different for group plans. With most of them, you can have the money keep rolling over, growing tax free.






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Siderophore
LSU Fan
Member since Nov 2010
3334 posts

re: PPO vs HSA high deductible


Oh yeah, you mean roll over year to year.

ALL HSAs do that.

It's FSAs that rip you off by it being year to year.

I thought you meant in the sense of rolling over into an IRA.






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The Future
Iowa State Fan
Smallville, KS
Member since Oct 2009
22661 posts

re: PPO vs HSA high deductible


quote:

Would have to know how much the deductible, premiums, and what % you are responsible for in each plan, but in general the HSA is usually the correct choice for a single person who is in good health.


I have one prescription medicine I take that is a generic, and I get filled once every 60 days. Would I have to pay out of pocket for it per month?






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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
17964 posts
 Online 

re: PPO vs HSA high deductible


quote:

I thought you meant in the sense of rolling over into an IRA.


Me too, and I couldn't figure out why on earth you'd even want to do that in the first place.






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11349 posts
 Online 

re: PPO vs HSA high deductible


FSA's are shite. I guess if the employer matches it and you remember to use it, it's got some tax advantages. But HSA's are a fantastic option for young people. Note to the OP. Self insure your scrips if you can, until you've built enough in the HSA account to cover a few years of deductibles. You'll be amazed how much of an advantage it is to not have worry about a catastrophic illness wiping you out financially.





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b-rab2
LSU Fan
Lafayette
Member since Dec 2005
9593 posts

re: PPO vs HSA high deductible


What do you mean self insure?? You mean just pay for them out of pocket?





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Teddy Ruxpin
LSU Fan
New Orleans, LA
Member since Oct 2006
17964 posts
 Online 

re: PPO vs HSA high deductible


He's saying that while you are putting money away into your HSA and investing that sum; use other money to pay for qualified healthcare expenses if you can. That way your HSA grows nice and big and if something bad happens, you can tap it. If you had kept nickel and coming your HSA it may end up too small to cover something more serious.

I believe that was the message.






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11349 posts
 Online 

re: PPO vs HSA high deductible


quote:

What do you mean self insure?? You mean just pay for them out of pocket?




Yes, if he can afford to. The reason is because you can only contribute up $3,250/Single, $6,450/ Family to an HSA. Using that money for prescriptions eats away at the account balance and those funds can't be replaced. You want to contribute the Max, and grow a large balance while you're young and healthy and only use it when you have to (emergencies). Once the balance is up to a couple of years of Deductibles/Max out of Pocket, go ahead and use it for prescriptions.

Again, if paying prescriptions out of your pocket is too expensive, like $100 +/month, then use the HSA.






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11349 posts
 Online 

re: PPO vs HSA high deductible


quote:

He's saying that while you are putting money away into your HSA and investing that sum; use other money to pay for qualified healthcare expenses if you can. That way your HSA grows nice and big and if something bad happens, you can tap it. If you had kept nickel and coming your HSA it may end up too small to cover something more serious.

I believe that was the message.



Well damn, I spent all that time typing my response, could have just waited a second and let you handle it. Yes that was the message.






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Bear Is Dead
LSU Fan
Monroe
Member since Nov 2007
3492 posts

re: PPO vs HSA high deductible


I have an HSA question. Is there any other security that you can place your balance in? The interest rate on the account is pretty sad face.





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ATL TGR
LSU Fan
Houston
Member since Apr 2008
2874 posts
 Online 

re: PPO vs HSA high deductible


quote:

Is there any other security that you can place your balance in? The interest rate on the account is pretty sad face.


With mine you can invest with the balance over $1,000. The securities options aren't the best but there is some variety. Have earned a decent chunk of change in the past 2 years






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
11349 posts
 Online 

re: PPO vs HSA high deductible


Mine allows me to invest in mutual funds, but I had to meet a minimum balance of $3, 000 and I have to keep a minimum $2, 000 in their low interest savings. Now group plans have different rules, so you'll have to ask your employer about your options.





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CHSBears
Texas A&M Fan
Baton Rouge
Member since Aug 2007
503 posts

re: PPO vs HSA high deductible


My HSA account has a very low monthly interest rate also. But once the account goes over $1,500.00 you can set up a regular brokerage accoount and trade securities. Must keep a minimum of $1,500 in HSA and move funds back and forth between HSA and brokerage account as needed.





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