Get your free financial scoreSign inYour data on this device
Free to use. No account required.

Should I pick an HDHP with an HSA or a PPO at open enrollment?

Choose based on how much care you expect and whether you value the HSA's triple tax break. A high-deductible health plan (HDHP) has lower premiums but you pay more out of pocket before coverage kicks in; in exchange it unlocks a Health Savings Account, where contributions are pre-tax, growth is tax-free, and qualified withdrawals are tax-free. In 2025 you can contribute $4,300 self-only or $8,550 family, plus $1,000 if you're 55+. A PPO costs more per paycheck but lowers your exposure when you actually use care. Run the math: add a year of premiums to your expected out-of-pocket costs under each plan, then subtract the HSA tax savings from the HDHP. If you're healthy, can cover the deductible from savings, and want a stealth retirement account, the HDHP usually wins. Heavy, predictable medical use often favors the PPO.

All questionsBrowse the articles
Educational disclaimer. Everything on WealthSerene.com is educational and is not investment advice. Projections and calculations are illustrative; actual results depend on market conditions, your situation and factors outside this tool’s scope. For a decision specific to your situation, consult a qualified financial professional. View full disclosures