Struggling to choose between the HSA, PPO, and Kaiser HMO plans? Here’s how they stack up.
Premiums—With an HSA plan, you’ll pay less per paycheck in exchange for higher deductibles. If you’re in good health and use your medical plan mainly for preventive or routine care, an HSA plan might be good for you. PPO and Kaiser HMO plans have higher premiums, which means you’ll pay more per paycheck, but lower deductibles. Check out the medical plan cost comparison tool to see which plan works best for your healthcare needs.
Tax advantages—While most medical plan premiums are pre-tax, there are two additional tax-saving methods: Flexible Spending Accounts (FSAs) or Health Savings Accounts (HSAs). With a PPO or Kaiser HMO plan, you can enroll in an FSA, which allows you to contribute up to $3,200. With an HSA plan, you can enroll in an HSA that allows you to contribute up to $4,150 for individuals and $8,300 for families. (People 55 and older can stash away an extra $1,000.) and get up to $3,000 in contributions from NVIDIA [PDF]. Aside from the limits, the big distinction between an FSA and an HSA is how you can use these accounts over time. Funds deposited in an FSA must be used within the plan year, while HSA funds can be rolled over indefinitely and saved for the future. The plan you choose is up to you based on your financial situation.
Location of care—Both the HSA and PPO plans have in-network and out-of-network coverage. The Kaiser HMO plans are in-network only. If having flexibility and choice of where to go for care are important to you, consider the HSA and PPO plans.