One plan has a small deductible and copays but the monthly cost is higher. The other plan incorporates a company-sponsored HSA with contributions by my employe, has a lower monthly fee, but has a high deductible and all doctor visits must be paid in full until the deductible is met.
So, I'm left with a difficult financial situation that could have an effect on my other debts if I don't analyze my options.
What would you choose?
You have a family of 7 (5 children, 2 adults).
- Plan A costs you $75 monthly. This plan has a $2,500 deductible. You must pay 100% of visits until you meet your deductible. After deductible, you pay 10% for all visits. The company also gives you $1,500/yr towards an HSA that you can use towards medical expenses.
- Plan B costs you $230 monthly. This plan has no HSA. It has a $1,000 deductible and you must pay $20/$30 copay per visit but you don't need to meet deductible.
When going over your family budget, it's important to take into consideration all the costs and family situation to determine what plan will most likely cost you more out-of-pocket within the calendar year. Creating a budget based on solid health insurance planning will help you avoid unnecessary debt, or having to put expenses on a credit card.
What's awesome about the program Speedy Debt Repo provides is you can actually plug in both scenarios into your action plan and determine which solution will end up costing you more not only short term, but long term.
If you're interested in how I analyzed the two plans and which solution I arrived at, feel free to contact me, I'd be happy to help you out if you face a similar situation.