HSA vs. PPOM – seems like there is no real savings….?
Tuesday, 9. March 2010
Our situation: Self-employed (husband is a contract-only self-employed software architect; I work for his business in an administrative capacity – so techinically, I am his “employee”). Two adults, two small children. All healthy.
Currently we pay for a PPOM that allows for 2 office visits/person/year + $35 co-pay. VERY LIMITED coverage (inpatient only + preventative care such as OB-GYN stuff and well care for kids). Individual deductible = $1000 per person/ $2000 per family, then 80% coverage to $15,000 (our max out of pocket); then 100% coverage. Premium totals over $5200/yr and increases about 18-21% a year (no prescription coverage, of course)
A year ago our accountant advised switching to HSA type health insurance because he said the write-offs would be much greater. Now he’s not sold on the idea. We’d like to better understand where the tax write-offs would be and what the potential savings are in switching (or not switching).
If we switch, the HSA type would cost about $900 less per year in premiums. Family deductible amount (there is no individual deductible) shoots up to $5800.
NO office visits covered. Preventative package would include “covered” services such as OB-GYN w/ mammogram; well-child care consisting only of $500 max limit for vaccinations for kids – but all out of pocket expenses, as they would fall under the deductible first.
We are a healthy family, but this past year we had some unexpected health set-backs (my husband broke his nose, and my son had a trip to the ER for something minor on a Saturday night
What does and does not constitute as going toward the deductible is sometimes quite nebulous, it seems.
My question is: with the numbers in mind – should we switch? Or stick with the PPOM? And why?
Thanks to any insurance and / or accounting expert/professional who takes the time to give us some insight into this whole HSA vs. PPOM thing.