You should review your health care plan each year to see how the benefits have changed. If your employer provides multiple options, you can weigh the cost and savings of each plan to fit your personal health care scenario.

You may have heard about Health Savings Accounts (HSA). HSAs are associated with High Deductible Health Plans (HDHP). They provide another option to saving money on taxes for health related expenses. Many employer sponsored plans provide a type of HDHP with an HSA. In addition to traditional methods of saving for retirement, the HSA can be another powerful tool.

Some employers still provide Preferred Provider Organization plans (PPO) for the employee. Many PPO plans carry significantly lower deductibles up front over an HDHP. They may also have lower life time maximum out of pocket expenses, as well as lower co-pays. PPO plans, in most cases, cost more per month than HDHPs.

Each person or family scenario is going to differ and will dictate which is more appropriate. Your health care plan may change based on what your level of health care needs are. HDHPs are most suitable for any individual or family who has below average health care expenses or who have saved enough to pay the out-of-pocket deductible. Those who are going to need more care within a given year may seek to use a PPO plan to take advantage of the lower deductibles and reduce out-of-pocket expenses.

If you have additional questions, please contact your advisor.