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HDHP vs. low (HSA vs. no)

Home Financial Advisors HDHP vs. low (HSA vs. no)

  • Avatar Pedent13 
    Participant
    Status: Dentist
    Posts: 1
    Joined: 07/24/2018

    Hi everyone,

    First time post here. I’m a new dentist about to join a practice. My wife (an orthodontist) and I have access to a few different health plans through our offices. I’m trying to determine which would be the better decision for us: 1. Select a HDHP (Ind. $2000 deductible) and max out an HSA, or 2. Select a $0 deductible health plan without access to an HSA. Surprisingly, the premiums between the two are quite similar and the network of doctors at our disposal is also similar. Fortunately, we are not heavy utilizers of healthcare at the moment, so annual costs between the two are relatively similar. However, we may be using maternity services within the next 1-2 years, which would be costly (a few thousand dollars) under the HDHP.

    I’d like access to the HSA, but am not certain if the long term benefits of HSA savings outweigh the increased expense in the short term if I select the HDHP.

    Could anyone provide further insight or advice?

    Thank you!

    #138856 Reply
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 1606
    Joined: 01/03/2017

    It sounds like you guys are pretty healthy and a $2k deductible honestly isn’t a whole lot in the grand scheme. Given that you two are likely in a higher tax bracket, the triple tax advantages of the HSA would be enticing. I’d go with the HSA in your situation (assuming you’re planning on maxing it out). With the HSA max contribution being $6900 for you guys, you’d almost get your $2k back in a tax break alone making that a wash and the investing opportunity makes the HSA the clear winner.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #138865 Reply
    q-school q-school 
    Participant
    Status: Physician
    Posts: 2184
    Joined: 05/07/2017

    you don’t have to decide forever, correct?

    hsa/hdhp for now

     

     

    #138870 Reply

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