“Eric” is the second of four Penn State employee examples illustrating claims and premium expenses that a Penn State employee could expect to pay within both plans.
Eric is 58, single, and manages a chronic condition. He makes $100,000 per year. Eric has considered enrolling in the Value-Based Benefit Design (VBBD) program since he is a Diabetic. He knows that cost sharing for visits and many tests related to his condition will be waived if he enrolls. He also understands that his prescriptions will not be a part of the VBBD program and knows that his prescription deductible will increase from $1,000 to $2,000 in the PPO Plan in 2017.
Recommendation after comparison:
The PPO Saving Plan is recommended for Eric. Even though Eric spent more in medical expenses in the Savings Plan, when factoring in his premium expenses he would have spent more in the PPO Blue Plan. Eric chose to use the premium difference to help fund his Health Savings Account (HSA) and pay for the out-of-pocket expenses. He also received the Penn State HSA contribution of $400 which can be used for medical expenses now or in the future.