a hand holding a cell phone

Media / Blog

PPO or High Deductible Healthcare Plan: Which is Better?

Prev

Santa In October?

October 17, 2021

PPO or High Deductible Healthcare Plan: Which is Better?

Companies typically offer a period of open enrollment in the fall, which gives employees the opportunity to review healthcare offerings and evaluate their plan selections. As Private CFOs® to our clients, we help families through this process each year. One important decision might be choosing between a high deductible plan, which could include access to a Health Savings Account (HSA), and a PPO (Preferred Provider Organization) plan.

A few important considerations when analyzing your options:

Cost/Ability to Incur a Larger Deductible
High deductible plans can be much cheaper per month, but you will have to come out of pocket for a larger amount to reach your deductible

Access to a Health Savings Account (HSA)
A savings account funded with pre-tax dollars (lowering your taxable income), which allows you to save and invest for future healthcare needs. These funds do not expire and do not need to be used each year, so your balance can grow/compound substantially over time. Also, many companies offer a contribution to your HSA for choosing a high deductible plan - free money!

  • In 2022, a family can put away up to $7,300 and an individual can put away up to $3,650
  • For those 55 and older you can save an additional $1,000


Upcoming Medical Needs
If you don't have a proper emergency reserve of cash and have large upcoming expenses (elective surgery or having a baby), a PPO might be a better option as your out-of-pocket expenses could be more limited in the short term

Healthcare costs continue to rise and make up a large part of expenses in retirement. In fact, Fidelity's most recent study states that for a 65-year-old couple that number could be as much as $300,000 (net of taxes) over your retirement years. Making the right plan selections each year can have a meaningful impact on both your immediate and long-term financial health!

Next

5 Factors Investors Must Consider before Investing in Crypto Mining

About the author

a man wearing a suit and tie

Brandon Hayes

Vice President, Private CFO®

In 2011 Brandon opted to forego a long-term career in corporate America to join oXYGen Financial because he was impressed by the vision of creating a premier independent financial services firm, which strives to provide unbiased advice to the X & Y Generations.

A native of Westlake, Ohio, Brandon currently lives in Atlanta with his wife Aly, daughter Maryn, and their black lab Pepper. He's the youngest of three children and played soccer through college at Elon University. He's an avid runner and enjoys cheering for Cleveland sports teams despite some pretty rough years.

Credentials/Certifications:
CERTIFIED FINANCIAL PLANNER™ and MBA from Georgia State University in Entrepreneurship. Brandon holds his Series 7 (General Securities Representative), 63, Series 65 (Investment Advisors Law) and Georgia Life, Health and Variable Insurance licenses.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney, or tax advisor with regard to your individual situation.

Background and qualification information is available at FINRA's BrokerCheck website.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Sign Up

Sign up for our exclusive Sunday Paper with a weekly market commentary, insightful personal finance blogs, and life changing education guides.

Email sign up

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. oXYGen Financial is not affiliated with Kestra IS or Kestra AS. Kestra IS and Kestra AS do not provide tax or legal advice. https://Bit.ly/KF-Disclosures

This site is published for residents of the United States only. Registered Representatives of Kestra IS and Investment Advisor Representatives of Kestra AS may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact Kestra IS Compliance Department at 844-553-7872.

PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. Kestra IS and Kestra AS makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is Kestra IS and Kestra AS liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.