Math + data = good decision

Big decision to make this week.  I thought I already made it but now I am on the fence.

It is insurance renewal time and I must decide whether or not to participate in the traditional PPO plan or utilize the high deductible HSA plan.  My physician has suggested that I do a sleep study because she thinks I have sleep apnea.  The tests average cost is $5000. Gulp.  I had already decided to hold off on taking the test till 2013 so I could move to the PPO plan so more of my expense would be covered by my insurance.  However, now I am not sure that is the smartest decision.

My yearly premium with a PPO plan is $1920, however, it is $1080 for the year with  a HSA.  That is a $840 variance.  The sleep study is going to cost about $5000.  My portion under a PPO plan is $1800 and under the HSA plan is $3000 (my entire deductible).  My job also gives me $500 per year toward my HSA.  This takes my total 2013 expense for PPO to be $3720 and my HSA to be $3580.  With only that information I would save $140 for the year by going with the HSA.
 

	PPO	Health Savings Account	Variance
Premium	1,920.00	1,080.00	(840.00)
Sleep Study	5,000.00	5,000.00
CDS Portion	1,800.00	3,000.00	1,200.00
Novia Health SA		(500.00)
Total Out of Pocket	3,720.00	3,580.00	(140.00)
Additional Per check Deposit	104.17	114.58
Premium per check	80.00	45.00	Up $10 from 2012
Total health cost per paycheck	184.17	159.58
Total Current Payroll Deduction	60.00	60.00
Total Additional Per check	124.17	99.58
Yearly Amount	2,980.00	2,390.00

So...the math tells me to go with the HSA.

However, I don't know what I don't know.  What else might happen to me next year.  If I max out my HSA delectable in January everything (except for meds) are 100% covered for the remainder of the year.  However, if I stuck with the PPO plan I could have additional co-pays for the remainder of the  year even thought I reached my $1000 deductible.  Plus my max contribution to the HSA is $3250 ($500 from my employer and $2750 from me).  That just barely covers this test and leaves no room for dental or optical work that is covered separately.  Plus, I have to wait for the money to be contributed to my account each paycheck before I can spend it whereas I can spend my entire FSA in January if I needed to.

Is your head spinning?  Mine is!  I just don't know which way to go this year!