It used to be that your employer presented you with a single health plan and you had a simple decision: take it or leave it. Maybe, if you were lucky, you could pick between the wonderful worlds of HMO and PPO, with one promising low costs if you don’t get any bright ideas about having options, the other promising you that you can do whatever you want so long as you pay for it.
These days, we’re in the age of “healthcare consumerism,” which among many other things means that you’re on the hook for more of your healthcare costs. It also likely means that your employer is making a consumer-driven health plan (CDHP) available to you, which is the combination of a high-deductible health plan (HDHP) and a health savings account (HSA). If these are new or confusing terms to you, you’re not alone. Health insurers specialize in actuarial risk, not marketing and communication, so they often think that the best way to get you to understand a confusing phrase is to make it an acronym. Ugh. Calling something a “CDHP” and saying it’s there to help you understand and control your healthcare spend is like promising a better understanding of your personal finances and then handing you an abacus and saying “OK, have fun!”
But, as Bob Marley might say, don’t worry about a thing, ‘coz every little thing’s gonna be alright…once you read through this primer on which health plan is best for you, your family, and your goals of financial independence.