I went ahead and switched my insurance over to the High Deductible plan, which will lower my premiums by about $100. It will also mean that my deductible jumps from $500 to $1200 but it also means that I now qualify for a High Deductible Health Plan (HDHP) which means I can now get a Health Savings Account (HSA).
My insurance company does not allow you to have a FSA and the HSA at the same time so I will have to get rid of my FSA once the new plan kicks in and everything gets rolling. This change also means that I will have to tweak the budget YET again because I am not sure how the lower deductible and other deductions will affect my net income. I do plan on investing the difference between my old premium and the new lower premium into my HSA so that I do not get too off track with my cash flows.
My employer does not offer the HSA through its staff so I had to go to Chase to get my HSA set up. The process on the website was easy since I already have accounts with Chase. I simply clicked on the banking options and chose Health Savings Account and proceeded to enter my information. I got my account set up in about five minutes and made the initial deposit that they require to open the account.
I will need to fund my account via payroll deductions and my contributions will be taken out pre-tax which is even better for me. (more on THAT later).
Getting more bang for your buck. Insurance cost are always high but it seems like in the long run will be saving a little be more money on the month to month basis and you will have a better coverage. I think it was a very smart move on your part.
What prompted all these changes?
They can be good in some situations. However, many families find that they do not meet their needs. But, in the end, you have to do your own assessment and add up the costs and savings to see what would be best for you.
It sounds like a bit of a risky move if you do happen to need to use your medical coverage. As a young person it’s probably a wise decision in the end. Dropping premiums by $100 sounds great.