Why didn’t Westport WEA keep the old PPO plan?
- In 2012-13 the total cost of the Family PPO for the BOE was $22,436.40. We paid 18% which equals $4038 or $202 per pay for 20 pays.
- In 2013-14, the total BOE cost for the Family PPO plan is $25,620.96.
- The 13-14 PPO plan has increased in cost by almost $3200
- We would have had to increase our share to at least 20% to convince the BOE to let us keep the PPO plan while almost all neighboring districts have switched to an HD/HSA style plan.
- $25,621 * 20% = $5124 which would have been our premium share and which equals about $256 per pay period.
- The 2013-14 rate for a family on the high deductible/HSA plan is $170.23 x 20 pays = $3404.52 total
The $1700 difference ($5124-$3405) in premium payments is more than the possible $2000 we might have to put into the HSA when you consider that you are getting a 25% tax savings on that $2000 ($1500). This does not even include the cost of co-pays that we had under the PPO system.
Savings on premium between HD/HSA & PPO had we all stayed on PPO plan:
Single: $9,491.88 * 20% = $1898 total or $94.90 per pay. HD plan costs $63 per pay so you are saving $640 in premiums over the year by being in the HD plan.
Dual: $20,415.72 * 20% = $4083 or $204 per pay. HD plan costs $135.64 x 20 pays = $2712.81 total, so you are saving $70 * 20 pays = $1400 $3404.52 total
Family: $25,620.96 * 20% = $5124 or $256 per pay. HD plan costs $170.23 x 20 pays = $3404.52 total, so you are saving $86 x 20 pays = $1720 by being in the HD plan.
Putting money into the HSA. If you contribute money to an HSA where you pay no income tax or payroll taxes, most experts say that you will save about 25%. read about tax savings
- $1000 deposit = costs you $750
- $2000 deposit = costs you $1500