Can someone explain the difference?
7 replies (most recent on top)
Neither is worth the paper they're printed on.
Option 1 has higher deductible, lower monthly cost and allows you to open an HSA.
Very easy. The difference between Option 1 and 2 is 1.
Not being in BCBS territory, I don't have access to the plans. However, AT&T in the past has had plans with a deductible high enough to allow you to fund an HSA.
So, there is a math question. Is the difference in the deductible smaller than the difference in the premiums? How much medical expenses would you have to run in order for the out-of-pocket makes the high deductible plan inadvisable.
When I did that math a few years ago, the difference in the deductible was less than the difference in the premiums. And I would have had to run around $20,000 medical expenses to have greater out-of-pocket costs. So, one's health situation is a major factor.
Meanwhile, we're hearing that subsidizes for retiree health care could disappear. Having an HSA could help pay for things like Medicare part B expenses and so forth.
So, there is lots of math work to do, which actually should have been done by now, along with an assessment of one's health situation, and costs likely to be incurred in 2022.
Pick your poison!
Option 1 has a higher monthly premium (amount taken from your check) but lower deductible (amount must spend before benefits kick in)
Option 2 has a lower monthly premium (amount taken from check) but higher Deductible. (Amount you must pay at doctor before benefits kick in)
For those with families or medical conditions opt 1 costs less over time generally because of the likely hood of reaching the deductible. The amount of coverage benefits out weights the extra premium generally.
You just have to do the math for your individual situation.
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Option 1 you got screwed by the union. Option 2 you got screwed by IBEW.