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I like high deductible plans with an HSA. Like redpoint I see insurance as something used to cover unexpected events that I can't pay out of pocket. Things like my $135,000 bill for a broken leg. I'll gladly take a cheaper premium and pay for my infrequent medical bills out of pocket. However, my wife and I are healthy. High deductible plans don't work for people with chronic conditions
My work offers us the choice of a high deductible plan with HSA or a regular PPO. They are both BCBS with the same network. The high deductible plan has no employee month premiums but a $2,500 deductible per person and a $2,500 max-out-of pocket for medical. The PPO is $268 a month with a $500 deductible and $1500 max-out-of-pocket per person. So if I have no medical bills I save $3216 a year with the high deductible and worst case I still save $1216. However, even showing co-workers the math most still go with the PPO because they don't want to pay medical bills out of pocket. That is even before you pair it with an HSA.
HSA's are the most tax advantage savings plan in the USA. You pay no taxes on the money going in or when you take it out. No Federal or state income tax, no Social Security, no Medicare. A family can put $7,000 a year in so that is $7,000 that we pay no taxes on. So we contribute the max every year and don't touch the money. It is invested in index funds and it growing nicely to be used as tax free retirement money. The money is only tax free if used for medical expenses but the law doesn't say you have to withdraw the money the same year the expense is billed. So I keep keep a running total and receipts of all my medical expenses so I know how much can be taken out tax free.
Unfortunately with medical insurance in the USA what is good for me might not work for you. Even buying on the ACA exchange the prices change for every state and even county in that state.
And YES I realize my company is more generous than most. Best company I have worked for by far. (I've worked for 9 to date)
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