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June 7, 2010
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HDHP

HDHP - High-deductible health plan

This is what our company just switched to. It's our only health insurance option, and it basically works like this. The plan has a high deductible ($5,000/yr in our case) but lower premiums ($160/mo). After the deductible is met 100% of pretty much everything (within reason) is covered.

It doesn't sound so great, right? Well, there is one upside. In exchange for having almost no insurance, the company opens a Health Savings Account in my name. And they deposit $1500/yr. This money can go to any qualified medical expenses. Also, I can keep this account for life. So anything I don't use this year can rollover to next year.

So the key here is to either fall in the $0-$1500 range of medical expenses, or to really blow it and go way over $5,000.

...but really blowing it will mean that 3500 additionaly dollars (over the $160/mo) will come out of my pocket.

We'll see.
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