I do not recommend this approach.
There's a longer story here, one I will share in the future, but the point I want to make in this post is that I don't take health insurance for granted. Ever. I have great coverage now, and I'm thankful for it every single day. Everyone deserves this kind of security in their lives. (Surely we can make this happen, America.)
Given our past health insurance nightmare and our current debt reduction mission, I am super uptight when it comes to picking health insurance. Open enrollment rolls around and I obsess. This time, I've narrowed it down to two possibilities. Although I've spent the last week weighing the pros and cons of both, I can't decide:
(Note: Fortysomething has complete coverage through his work, so my insurance covers myself and The Kiddo.)
Option 1: Preferred PPO
Monthly premium: $150
Family deductible: $500
Maximum out-of-pocket: $2000
Preventative care: $0
Mental health: $0 after deductible met
Office visit co-pay: $35 after deductible met
Pros: The premium is totally reasonable (see "but" below), max OOP is low, deductible is decent, mental health costs nada (which is amazing)
Cons: BUT my paycheck is laughable to begin with. I really don't make that much, so the $150/month premium matters. The co-pays matter. The Kiddo and I are - knock on wood - pretty healthy. We don't have any ongoing prescriptions, and the amount we spend per year on medical expenses is usually far less than the $1800 we'd spend on the premium.
Option 2: High Deductible Health Plan + HSA
Monthly premium: $52
Family deductible: $2700
Maximum out-of-pocket: $4000
Preventative care: $0
Mental health: 10% after deductible met
Office visits: 10% after deductible met
Yearly employer contribution: $1400
My (self-imposed) minimum contribution per year: $1300
Max contribution allowed: $6,900
Pros: My employer would be giving me extra money (the thought of this makes me so happy); money put into HSA is pre-tax; HSA rolls over from year to year. I could use my HSA when I go to the doctor.
Cons: What if we end up in the ER in, like, January? We won't have much money in the HSA yet, and we'd have to dig into regular savings. (I could also set up an FSA when I enroll in benefits.)
Both plans are great... I'm just being all nitpicky and Type A about this.
What do you think? What would you choose? Or... is this kind of a wash, with both options being equally good?