Thanks in advance for your thoughts. First post here, so let me know if I need to adjust anything.
Here’s the situation:
I’ve used HDHPs with an HSA for years. I max out contributions, invest, and rarely withdraw.
My partner needs regular medical care and several prescriptions. They prefer traditional plans with higher premiums but lower out-of-pocket costs.
A couple of months ago, I added my partner to my employer’s HDHP after they lost their job. They dislike the high deductible and paying upfront for services. I considered switching to a more traditional plan before adding them but didn’t see it as a better option, even with their medical expenses.
When they get a new job, they’ll likely get their own insurance unless I can convince them that staying on one plan is better overall.
My question: Am I missing something? Should I look beyond just the total annual costs? I approach this from a numbers perspective, while my partner is focused on the upfront cost (e.g., paying $150 for therapy vs. a $20 copay).
The employer plan costs $180 per month for both of us, with a $3,300 deductible. After that, services are 80-90% covered. The HSA includes an $825 employer contribution, and the tax advantages make every HSA dollar worth more. I figure we’ll hit the deductible in the first half of the year with therapy, doctor visits, and prescriptions. My mindset is that front-loading costs and letting the HSA grow over time is better long-term. My partner is worried that the upfront costs will discourage us from getting needed care.
What do you think? Is my partner’s concern about paying upfront valid, or is it more emotional if we can afford the costs? What am I missing?
Your employer’s plan sounds solid for people who can manage upfront costs. The HSA advantage can’t be ignored, especially with the tax benefits and growth potential. If your partner’s medical expenses are predictable, it might help to show them a side-by-side cost comparison with traditional plans. Numbers don’t lie, but emotions around healthcare costs can be tricky to manage.
I’m in a similar boat and agree with your logic. HDHPs save me about $2,500 a year on premiums and prescriptions. My meds cost less through the HDHP than they would under a traditional plan. The upfront costs sting at first, but the yearly savings are worth it.
You’re not missing much. The key is the total cost for the year—premiums, deductible, and out-of-pocket costs. Some people focus too much on upfront expenses without looking at the bigger picture. Maybe show your partner what you were spending before they joined the plan so they see the difference.
What’s the out-of-pocket maximum? That’s important to compare too. As long as you can save for medical expenses, HDHPs usually make more financial sense. They’re not for everyone, though, especially if someone finds it hard to save or doesn’t like the idea of paying big costs upfront.
I understand the struggle. If you know you’ll hit the deductible, go with whichever option has the lowest combined premium and out-of-pocket max. If not, maybe the lower premium plan makes sense. Show your partner how much they’ve paid in copays in the past and compare that to what they’d spend under the HDHP.
One thing to remember: if you’re on different plans, you could be dealing with two out-of-pocket maximums. Depending on your situation, that might add up to more than being on one HDHP. It’s something to think about when weighing your options.
I’m with your partner on this. I prefer low deductible plans because of my regular medical needs. It’s a personal choice, though. If HDHPs work for you financially, then stick with it, but I can see why your partner feels differently.