Picking Health Plans

This is a great question.

And it ultimately is the question of healthcare.

Like this is the question that we always have to face and kind of go through.

And it's why you can't give just blanket advice for healthcare and say,

Oh, how did I look about healthcare plan? You get an

HSA.

It's unbelievable.

That's the way to go.

You can't say that because you're, Yes, it's typically cheaper.

The premiums are typically lower.

But the out-of-pocket deductible is normally sizably higher, obviously, with a high deductible health care plan.

So what I would recommend is going through – I know this sounds painful, but it's kind of like tracking your expenses because it gives you a good idea.

Going through and looking at the last couple of years and seeing how much you have spent on health care.

Now, you want to do apples to apples.

So I think comparing the $3,000 is a good start because that is the difference between what your premiums are.

And then he mentioned also what the employer is putting into the high deductible health care plan.

A lot of people don't calculate that part.

But remember, if your employer is throwing $1,000 in, that basically means your deductible is $1,000 lower, hypothetically.

The other thing you want to factor in is if you're going to contribute to an HSA, a health savings account that you're eligible for with your high deductible health care plan, factor in the tax savings that that's going to give you on a year-to-year basis.

So I'm going to make the numbers super easy.

These are not the numbers.

But let's say that the amount that you could put in for a family plan was $10,000 and you would save 25% of taxes on that.

Now, the actual out-of-pocket is like $8,400.

But let's say you did that.

That'd be $2,500 of additional tax savings that you would be getting by utilizing the HSA and the high deductible health care plan.