

Lower out-of-pocket maximum: The PPO typically has a lower maximum out-of-pocket cost than an HDHP.And having a lower deductible means a PPO kicks in with help on medical expenses sooner, rather than later. Lower deductible: We all want to save money where we can.To see if this is the right plan for you, let’s talk about the pros and cons. PPOs are also sometimes called traditional plans, because they’ve been around longer than HDHPs have. But you’ll also pay more in monthly premiums. So what does PPO stand for? It means preferred provider organization plan, and this plan type comes with the advantage of a lower deductible. The PPO does not mean the penny-pincher option-but that’s not to say you can’t use it to save money. On the other hand, do you sometimes go years without hitting your annual deductible? If you’re relatively young and healthy and have the option of saving for medical expenses in an HSA, an HDHP could be a great fit for you. Do you have a chronic condition or frequent doctor visits? If so, an HDHP might not be your best option. But before jumping into one, think about your general health. Once you meet your deductible for the year, an HDHP will typically cover most or all of your remaining medical expenses. Depending on your circumstances, those higher costs could be more than offset by the money you save on premiums and the benefits of saving with an HSA. But like any health plan, you’ll only have to pay up to the HDHP’s defined out-of-pocket maximum. That means you’ll have higher out-of-pocket costs when you need medical care. Of course, this kind of plan does have a higher deductible.

And that would come in handy if you ever need health care while traveling.
#Deductible vs premium vs copay free#
We usually recommend picking up any free money when it comes your way.


And those savings often make up for a higher out-of-pocket maximum. But the higher deductible is just one side of the coin. PPO.Ī high deductible health plan has a higher deductible than other plans-which may explain the name. Shortening the names is a good start! But to know which one is right for you, what you really need is an explainer on HDHP vs. Or HDHP instead of high deductible health plan. It’s way easier to say PPO than preferred provider organization. Ever wondered why we need so many acronyms to talk about health plans? There are a lot of letters! But look at it this way.
