My recommendation for my clients usually is if you get sick a lot, it might serve you better to choose the high premium medical insurance so you only pay a co-payment but if you don't, I would rather you pay a lower premium and max out on your HSA (assuming all your other higher priority goals like savings, debts and emergency fund goals have been taken care of). Sometimes companies even contribute money as incentives to get you enrolled in a high deductible insurance. A lot of people usually get turned off that they have to pay full price till the deductible is met hence they won't enroll in this but if you are a fairly healthy person and you don't see yourself going to the doctor more than two or three times that year, enrolling in this plan might save you more money. How? First, it lowers your AGI by $3,350 for single and $6,750 for family, which is equivalent to about $1k to almost $3k in tax savings for the year depending on your marginal tax rate. The other benefit of HSA is that you can keep carrying over the balances to the following year unlike the "use it or lose it" option for FSA. Plus the fact that you can bring your HSA funds with you whenever you switch jobs and you can keep maxing out the benefits till you retire AND you can also invest inside the account. Later, you can use the money as part of your after-tax medical cost income during retirement. Another way to think about this is it provides tax benefits of both 401(k) and a Roth IRA's. I always encourage clients to think of this as another valuable 'savings' vehicle that they can use for retirement.
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Teh Financial Coaching
My dream is for all my clients to attain Financial Freedom