Some more info...
Based on my searching, she cannot be covered by any other plan (even secondary) and contribute to a HSA.
I am trying to figure out if it makes sense from an investment perspective for her to opt out of her dad's PPO and enroll into the HDHP.
100% of preventative care is covered at no cost under her HDHP.
We are both generally healthy other than the occasional visit to a minute clinic for a z pack or a trip to a specialist (dermatologist, chiropractor, etc)
Crunching the numbers:
- She can enroll in a HDHP at no cost, which allows her to contribute $3,400 per year to an HSA.
- Her employer will contribute an additional $1,752 into her HSA
- HSA funds are tax free = additional savings
- Coinsurance is 100% in networking, 70% out of network
- The max in network deductible is $5,000; out of network is $10,000
- The max in network out of pocket (including deductible) is also $5,000, out of network is $20,000
My thoughts are as long as her healthcare costs for the year do not exceed the $1,752 contribution from her employer, she is coming out ahead. Thoughts on if my logical is sound?
Once we are married, the numbers get more complicated because there is cost to add a spouse to her employers plan.
- Adding me to the HDHP would cost $4,849 per year.
- My current PPO insurance is $2,244 per year, which I would drop.
- Net cost to add me = $2,605 per year
- Cost of adding me minus employer contribution of $1,752 = $853
- Coinsurance is 100% in networking, 70% out of network
- The max in network deductible is $10,000; out of network is $20,000
- The max in network out of pocket (including deductible) is also $10,000, out of network is $40,000
Both of us being on the HDHP plan allows us to contribute $6750 per year tax free to the HSA but I am not sure the extra tax free money is worth the $853 net cost, higher deductible/out of pocket max, and me giving up my PPO coverage.
I feel like if the tables were turned where I had the HDHP plan with HSA, it would make sense to add her for the ability to increase tax free savings then she could get the free PPO option from her employer.
Apologies for the thesis, I needed to get the information out of my head so I figured it made sense to have you guys check my work and maybe it would be useful to other in similar situations.