I’m moving to California and starting a job where my employer doesn’t offer health insurance. I’m looking at Covered California plans and want the lowest premium since I’m young and healthy. Right now, I’m deciding between Blue Shield Bronze 60 PPO and Blue Shield Bronze 60 HDHP PPO—there’s only a $6 difference in cost.
Which one makes more sense for someone like me who rarely goes to the doctor? Would appreciate any advice!
Thorne said:
Do you have an HSA, or are you thinking about opening one? Also, do you think you’ll hit your deductible or out-of-pocket max on either plan?
I don’t have an HSA and not sure if I’ll open one. This is my first job after college, and I’ve never really needed medical care, so I don’t expect to hit my deductible.
@Riley
If you don’t expect to use much healthcare, an HSA might not be a priority for you right now. But it’s worth knowing that HSA contributions are tax-free and roll over year to year, so they can be a good long-term savings tool.
Is the HDHP PPO the one that qualifies for an HSA? If so, in a worst-case scenario where you have major medical costs, you’d pay a max of $9k out-of-pocket with the regular Bronze plan and $7k with the HDHP plan.
The $6 per month difference adds up to only $72 a year, which isn’t much in the grand scheme of things. For that small extra cost, the HDHP gives you lower max expenses and access to an HSA, which can be useful.
Riley said: @Kim
Yeah, only the HDHP is HSA-eligible. How much should I contribute to an HSA if I go that route?
A common recommendation is to save enough to cover your out-of-pocket max, but that can take a few years. It depends on your budget and overall financial goals.
When I started my first job, I maxed out my HSA contributions because I didn’t have many medical expenses, and I invested the money. It worked out well because when my employer later switched plans, I still had that HSA balance growing tax-free.