HDHP vs. PPO | McGohan Brabender - YouTube

Oh, hey! Thank you. Okay, we have open enrollment  time. It looks like we have the high deductible  

health plan or the PPO plan. Um, they look pretty  similar. Oh, I'll just ask my facebook friends, duh.  

Okay, recommendation needed. Should I be on  the high deductible health plan or the PPO plan?  

Perfect, post! Yes, I'm sure, no cheese. That that's  it. Well, actually, I do have a question for you.  

So we're enrolling in healthcare coverage  at work... Hi, Lucy! Oh, she looks so cute. [Blonde female] Thanks!  

[Kenzie] So, I was thinking i should just get on the same  plan as you we are basically the same age, right?

[Kenzie] Well...

[Jeanne] Kenzie, why don't you just go to the open  enrollment meeting? [Kenzie] You're right, you're right.. I am.

Some of you may be wondering which plan is best  for you. You have to consider a few things. Let's  

start with a quick definition of the two plans:  First, the PPO - preferred provider organization.

This is what I call the traditional plan. You go  to the doctor, you pay a flat dollar charge or a  

co-pay. For example, thirty to fifty dollars for  a doctor's office visit and that's the extent  

of your bill. With the PPO, you often pay a higher  premium through each paycheck. For major services,  

you would need to pay a deductible before paying  a coinsurance or portion of the remaining charges.  

Second, the high deductible health plan with  the health savings account or HDHP with an HSA. 

the HDHP plan requires you to pay your entire  deductible before any copayments or coinsurance  

would kick in, and for that reason the HDHP usually  has a lower premium than the PPO. With both plans, 

once the deductible is met then the coinsurance  kicks in and services going forward will be paid  

by your insurance company, and you possibly. For  example, 80 to 90 percent by your insurance carrier and 20  

or 10 percent by you. However, with the PPO you will  continue to pay a co-payment for certain services  

until you satisfy your out-of-pocket maximum. It  is important to note that preventative services  

are covered 100 percent by the insurance under both plans.  So, first step, you should compare the two premiums:  

How much will come out of your paycheck  regardless if you use any health care services  

or not? The goal with the HDHP plan is to take the  savings from each paycheck and put that into your  

health savings account or HSA. This deposit is tax  deductible. The amount of money you put into your  

HSA reduces your taxable income. For example, if you  make forty five thousand dollars annually and you  

deposit five thousand dollars into your HSA you'll  be taxed as if you made forty thousand dollars.  

This health savings account is yours. It will  remain yours even if you leave the company and  

work somewhere else, but the money in the account  can only be used to pay for what the IRS calls  

qualified medical expenses and supplies. Next  step is to compare the deductible amounts. For  

the HDHP, this is the dollar amount you will have  to meet before your insurance kicks in. And finally,  

you need to consider the annual out-of-pocket  maximum for each plan. Unless something is  

very serious that happens it's rare that the  out-of-pocket maximum is reached. Consider this: how  

is your family's health? Are you generally healthy?  Do you have a lot of appointments? Do you have  

or are you planning to have a baby? Any surgeries  needed? It's a good idea to review your health plan  

utilization from previous years to remind yourself  of the types of expenses you typically experience.  

If you're healthy and have few medical claims the  HDHP could save you significant money. Objectively,  

you should take a serious look at your health  financial expectations for the year before  

choosing a plan. One last wrinkle, not everyone  can take advantage of this tax-free account.  

The rules of qualification for the HSA are: 1)  you must be enrolled in the high deductible  

health plan, 2) you can't be covered on any  other non-HDHP plan including your spouse's PPO 

or FSA, Tricare or VA benefits, 3) you can't be enrolled in medicare  

and, 4) you may not be claimed as a dependent on  another tax return. The PPO plan is right for some.  

It's why it's still around, and the HDHP can  save you money, especially if you are healthy.  

No one can make this choice for you. Take some  time to really think about it and make an  

educated choice. If you have more questions  contact a member of your MB Account Team.

Now I get it!