# High-Deductible Health Insurance vs PPO



## ClayPot (Jul 23, 2009)

So I need to decide between health plans soon. There are several options, but only two that are reasonable ones.

One is a typical PPO. For the whole family it costs about $180 per month. Copays are typically $30, prescriptions $15. We've visited the doctors office about 9 times between January and June, and had about six prescriptions. Over the course of the year, I figure we'd spend about 12*185+18*30+12*15=2940.

The other is a high-deductible health plan. The deductible is $3000 for the family, after which we would pay 15% until we have paid $6000 for the year, after which we pay nothing. It is HSA compatible, so I could stick several hundred dollars per month away tax-free to pay for medical visits. If figure that a doctor's visit would typically cost about $120 and generic drugs about $25. The plan is only $19 per month for the family. Thus, I figure we'd spend about 12*19+18*120+12*25= $2688 over the course of the year. 

We currently have one son, but my wife is pregnant with a second child due in March. 

I'm leaning toward the high-deductible health plan because it seems like I'd spend about $3000 either way, there are tax benefits, and I only pay for the services I use instead of for the potential to use services. 

Advice? Thoughts? Poor estimates? I think either would be a reasonable choice for the family, but it's hard to determine the "best" choice.


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## Scott1 (Jul 23, 2009)

The "best" overall is to carefully manage your costs in this area as in any other. You'll spend less overall by being careful, and doing research. Like most people, you'll tend to be more proactive with hygene, preventive, etc. when it's your money (and maybe more prayerful). It's part of our (fallen) nature to be less careful when we think someone else is responsible to pay.

With that general observation that holds broadly true in life,

The high deductibles are a great idea and get insurance out of the business of being a middleman for ordinary, routine costs that can be afforded. There are a few that will automatically cover some preventative health screens (pay 100%). Those are the best value of all.


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## Rich Koster (Jul 23, 2009)

Be careful to check if there is a lifetime limit. I've seen them as low as $50,000 per person. My current plan has no lifetime limit.

Also make sure any specialist you like are currently accepting new patients through the PPO, as well as your primary.


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