SmarterHSA Blog #3: Traditional PPO vs. H.S.A Plans with a High Deductible

​​Comparing a Traditional, Co-Pay style health plan to a High Deductible Health Plan (HDHP) can be confusing for employees. There is a perception that Co-Pay plans are richer, more comprehensive than a HDHP. While this can be the case, there is often more to the story.  
There are basic questions that employees can ask themselves to help determine the best plan for them:

1. What is the portion of the premium that you will pay for each plan?
2. What is the out-of-pocket max that you will pay for health costs on each plan, before the insurance carrier covers everything?
3. What is your best case scenario (no healthcare usage--just premium paid) vs worst case scenario (high healthcare usage—premium paid + out-of-pocket max) for each plan option?
4. Is your employer making a health savings account contribution?  This amount can be subtracted from the out-of-pocket max for the HDHP.  For example, if I am covered as a single under a $2,000-100% ($2,000 out-of-pocket max) HDHP, and my employer is contributing $1,000 annually to my Health Savings Account, my out-of-pocket max for the year is now $1,000.   

Like most things involving health insurance, selecting the correct plan can be a confusing process for employees.   Keep these items in mind as you begin to prepare for open enrollment.