Eric is a 42 year old male in the market for health insurance.
He is considering a silver plan with a $3,000 deductible, then 30 % coinsurance to an annual out of pocket limit of $6,350. After modest co-pays, this plan also covers office visits and pharmacy charges at 100%. The premium is $349/month.
Eric is also considering a bronze HSA Plan with a $3,500 deductible. This plan has the same 30% co-insurance and out of pocket limit ($6,350), but office visits and pharmacy charges all apply to the deductible. The premium is $288/month.
Both plans cover preventive care at 100%.
In the HSA Plan, Eric can fund up to $3,300 of out of pocket expenses with pre-tax contributions. Depending on his tax bracket, that could add another $600 to the $732 of annualized premium savings.
In most cases – perfectly healthy or chronically ill – the math seems to favor the HSA Plan. What would you buy?