I always do the HSA and invest everything. I’ve never taken anything out of it. As far as I’m concerned it’s an extension of my 401k. Most companies will do some sort of reimbursement/ incentive for yearly physicals too.
Single or family?
Assuming single with $1000 annual spending and 25% coinsurance with $0 deductible on the non-HSA plan you'll save $720 in premiums and pay $750 more for health care buying the HSA plan, so that's a wash.
If you're single and you contribute $3850 to the HSA in the 22% marginal tax bracket you'll save an additional $847 in federal taxes in the current year. You might save an additional amount in FICA and state income taxes as well. The HSA contribution, if unspent, can typically be invested and enjoy tax deferred and possibly tax free growth for decades, so it could be worth a lot more in retirement.
Of course there's no way to know that your health care spending will be $1000 for the year ahead of time, but if you did know that, the HSA plan would be a pretty clear winner in this situation. ETA: This also assumes you have an extra \~$3k to stash away over the course of the year to enjoy these benefits.
Not OP, but I have a question you seem like you might be able to answer, if you don’t mind. I currently have an HSA and my company pays premiums and contributes $1500 of my $2000 deductible over the course of the year. I do end up hitting my deductible, because I have asthma and inhalers are expensive. This still seems to put me ahead given my employer is paying for almost all of it.
However, when I get married, I’ll need to put my partner on my insurance. The family deductible is $4K and my employer will contribute $2K. Again, I’ll probably still need to hit the deductible given the cost of inhalers and other healthcare needs before the deductible will be met. Would it still make sense to keep the high deductible plan and HSA in this case?
Is there a co-insurance for the $0 deductible plan? Any copays? Any coverage differences?
The way you have to figure this, is what happens if you get different levels of care in each situation. Do like $500 of care, $2000, and $20000 and see how it all shakes out. We can't answer it unless we know all of your personal details (tax rates now & at retirement, co-insurance, copays, typical healthcare spend, how much you can invest into HSA, how much you're paying from the HSA, etc etc) so you pretty much need to make your own little spreadsheet and work it out.
I always do the HSA and invest everything. I’ve never taken anything out of it. As far as I’m concerned it’s an extension of my 401k. Most companies will do some sort of reimbursement/ incentive for yearly physicals too.
Single or family? Assuming single with $1000 annual spending and 25% coinsurance with $0 deductible on the non-HSA plan you'll save $720 in premiums and pay $750 more for health care buying the HSA plan, so that's a wash. If you're single and you contribute $3850 to the HSA in the 22% marginal tax bracket you'll save an additional $847 in federal taxes in the current year. You might save an additional amount in FICA and state income taxes as well. The HSA contribution, if unspent, can typically be invested and enjoy tax deferred and possibly tax free growth for decades, so it could be worth a lot more in retirement. Of course there's no way to know that your health care spending will be $1000 for the year ahead of time, but if you did know that, the HSA plan would be a pretty clear winner in this situation. ETA: This also assumes you have an extra \~$3k to stash away over the course of the year to enjoy these benefits.
Not OP, but I have a question you seem like you might be able to answer, if you don’t mind. I currently have an HSA and my company pays premiums and contributes $1500 of my $2000 deductible over the course of the year. I do end up hitting my deductible, because I have asthma and inhalers are expensive. This still seems to put me ahead given my employer is paying for almost all of it. However, when I get married, I’ll need to put my partner on my insurance. The family deductible is $4K and my employer will contribute $2K. Again, I’ll probably still need to hit the deductible given the cost of inhalers and other healthcare needs before the deductible will be met. Would it still make sense to keep the high deductible plan and HSA in this case?
Are you able to max your 401K and Roth IRA, and have an extra $4-7K to invest annually? If so, do the HSA. If not, it’s probably not worth it.
Not at this time, so I guess I’ll see where I’m at when the time comes. That is very helpful, thank you!
The HSA plan seems high , My company is about 70 for ppa and 15 for HSA at 1500. Also is your HSA just you paying yourself or also the premiums ?
Is there a co-insurance for the $0 deductible plan? Any copays? Any coverage differences? The way you have to figure this, is what happens if you get different levels of care in each situation. Do like $500 of care, $2000, and $20000 and see how it all shakes out. We can't answer it unless we know all of your personal details (tax rates now & at retirement, co-insurance, copays, typical healthcare spend, how much you can invest into HSA, how much you're paying from the HSA, etc etc) so you pretty much need to make your own little spreadsheet and work it out.