High Deductible Hsa Vs Ppo

Hsa Vs Ppo Key points. high deductible health plans, or hdhps, have a minimum deductible of $1,600 for individuals and $3,200 for families in 2024. you can fund a health savings account if you have an hdhp. The bottom line. a ppo is a type of health insurance plan, while an hsa is an account you use to save and invest money for healthcare. an hsa can be a smart way to save for health related costs.

High Deductible Health Plan Hdhp Benefits Hsa Vs Ppo But enrollees can open a health savings account (hsa) to save and invest pretax dollars to cover medical expenses. about 46% of u.s. employees use a ppo, while 28% had an hdhp with a savings. According to the irs, an hdhp in 2022 must have a minimum deductible of $1,400 for an individual and a maximum out of pocket cost of $7,050 for single coverage. the deductible minimum for family coverage climbs to $2,800, and the out of pocket maximum is $14,100 for family coverage. Ppo pros and cons. first, the upside: lower deductible: we all want to save money where we can. and having a lower deductible means a ppo kicks in with help on medical expenses sooner, rather than later. lower out of pocket maximum: the ppo typically has a lower maximum out of pocket cost than an hdhp. Let's say you’re deciding between the following hdhp and ppo plans: an hdhp with an annual premium of $4,800 ($400 per month) and $5,500 deductible. a ppo with an annual premium of $7,200 ($600 per month) and a $1,200 deductible. now, consider the scenarios outlined in the chart below.