Choosing the Right Medical Plan

(relaxing music) – [Narrator] Any time
you’re buying insurance, whether that’s medical,
car, or home insurance, you pick a plan based on
the cost of the insurance and how much you’d have to pay before the insurance takes over. So to understand the true cost, you need to think about
the total potential costs, that’s the premium, plus
the maximum you’d pay when you use the insurance. At Purdue, we give you a
choice of three medical plans. The main difference between the plans is how you’re spending
your money for healthcare. Do you wanna pay more upfront in premiums via payroll deduction, or are you willing to pay less in premiums and possibly pay more if
medical services are needed? To fully understand which
plan might be best for you, you have to consider the full
cost of your medical plan. First, consider the premium. There’s range of premiums among the plans. While this amount is
deducted from your paycheck, it’s still part of what you’re paying. Now, add up the medical costs that you generally have in a year. If you choose one of the HSA plans, then subtract the HSA contribution Purdue makes on your behalf. You can use these contributions to pay for some of your
anticipated medical expenses. Let’s take a look at some examples of how the costs stack
up under the three plans. Meet Patricia, a Purdue employee who is in good overall health and only uses a few services a year. Let’s look at her expenses and how they compare across plans. First, there are the premiums, then her out-of-pocket
expenses for medical services. Purdue provides an HSA
contributions to the two HSA plans, so she’s used the money to help lower her out-of-pocket expenses. As you can see, for someone like Patricia, she would spend the most
on the Purdue Health Plan and the least on the HSA2 plan. However, her total
potential costs for the year are the lowest on the HSA1 plan. So she must decide if
the potential savings is worth the risk. But what if Patricia faced
more regular health issues and has to seek care on
a fairly regular basis? Let’s look at the comparison again. Her premiums are the same, but her out-of-pocket
expenses are greater. She used the Purdue HSA
contribution to again, lower her expenses on
the HSA1 and HSA2 plans. In this case, the most
cost-effective option is the HSA1 plan. It’s also important to
note that in this scenario, she would hit the total potential
cost amount on all plans and would not pay
anything else for the year for eligible medical expenses. Now let’s look at how the plans stack up if Patricia had family coverage. Over all, her family of four is healthy and only see the doctor a few times a year for routine visits. When we add up the premium
and out-of-pocket expenses and then factor in the
Purdue HSA contribution, the HSA2 plan is the
most affordable option. However, the HSA1 provides
the lowest potential costs. But what if Patricia’s family has more complex health
issues or chronic conditions that require more frequent
visits with providers? Her premium, of course,
is the same as before. However, her out-of-pocket
expenses are higher. A family like Patricia’s will find the most affordable
option is the HSA1 plan. In all plans except the HSA2 plan, her family would have met
the total potential costs. The best way to decide which
plan makes sense for you is to look at your potential costs over the course of a year
like we’ve done here. A couple of things to keep in mind: first, a higher premium doesn’t necessarily mean better coverage. Likewise, a higher
deductible doesn’t guarantee you’ll spend more for services, and you shouldn’t simply pick a plan based on the deductible
and out-of-pocket maximum. You need to consider
the premium cost, too. Also, if you choose one of the HSA plans instead of the Purdue Health Plan, consider putting a little of the savings from the lower premium into your HSA. Any unused funds you and
Purdue put into the HSA roll over year to year
and are always yours. Whatever you choose, you’re
receiving great coverage with free preventative care from a wide network of providers.

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