Choosing Between an HDHP and a PPO

Choosing the right health plan is based on your family’s needs and can make a big difference for your family’s healthcare costs.

An HDHP (High Deductible Health Plan) is ideal for healthy families who don’t often visit the doctor, offering lower premiums and the option to save tax-free with an HSA.

A PPO (Preferred Provider Organization) is great for families with more frequent medical needs, providing predictable costs per visit but higher premiums.

Not sure which plan fits your family? Your Commas advisor can help guide you through the decision during open enrollment.

“A high deductible health care plan or HDHP plan is one where you pay for all of your medical visits and procedures out of pocket in, generally, exchange for a lower premium each month or paycheck. The reason why these plans are called high deductible is exactly that. You have the opportunity to pay more out of pocket if you do frequent the doctor than say another health care plan. But that exchange is having a lower monthly premium. A PPO plan or a preferred provider organization health care plan is one where you pay specified costs for each visit or procedure and you know that ahead of time. However the trade-off, unlike the high deductible plan, is those premiums can tend to be more.

High deductible health care plans are great for families who are generally healthy, maybe don’t frequent the doctor as much. Which is great for those families because you’re not going to the doctor so you’re not paying out of pocket costs and also so you’re having lower monthly premiums. So all in all, if you’re healthy, that means more money in your pocket each month through each paycheck. With a high deductible plan you also have the option to use what’s called a health care savings account or an HSA account and how those work is you put money in pre-tax and if you’re using those to pay medical expenses they’re also tax-free. So essentially you never pay taxes on the money that you’re using to pay medical expenses.

A PPO plan is great for families who maybe need to visit the doctor or have more procedures done throughout the years because those costs of what that will be are known before even walking into those appointments so it can help families who may frequent the doctor more to plan financially how to pay for those costs. When it comes time for open enrollment your Commas advisor is here to help you decide which plan might be best for you and your family.”