Should I choose the PPO or HSA
My company’s open enrollment is coming up and it’s my first time choosing a health insurance plan. The plan will cover 2 relatively health 26 year olds. We both require prescriptions every month (both have generic versions) and my partner goes to therapy every 2 weeks. We have a little bit of savings where we could pay the max HSA out of pocket limit but it would be uncomfortable.
The two options are a BCBS Blue Options 1-2-3 PPO or a Blue Options HSA.
PPO: $440/mo to cover both of us -$20 copay for primary care, 100% preventative care coverage -Inpatient service $250 per admission and 90% after deductible -Outpatient at 70% until deductible. -$10 copay on prescriptions -3000 family deductible -7000 out of pocket limit Company contributes $800 to an HRA
HSA: $400/mo for both of us -preventative care covered at 100% -primary care/inpatient/outpatient at 90% after deductible -preventative drugs are covered 100%, all others 90% after deductible -3000 family deductible -13100 family out of pocket limit Company contributes 1000 into the HSA
I semi-understand the difference between a HSA and a PPO. The HSA would require me to contribute a certain amount every month that would be pre-tax and I can use tax free on medical expenses. The PPO has a higher deductible but copays would be smaller right out of the gate.
I might be wrong but it seems like unless we are going to spend more than $1520 (HSA deductible – $40/mo price difference) on co-pays and visits to hit the HSA deductible, the PPO is a better option?
As I said, I’m brand new to this and don’t have anyone to ask or explain it to me so any help would be appreciated.
