Please explain like I'm 5

[u/93ParkAvenueUltra]

I have two health plans to choose from.

Plan A: $11856 per year premium. Deductible is $1600 with 20% coinsurance afterward. Out of pocket max is $6250. Plan Type: PS1

Plan B: $8050 per year premium. Deductible is $7500. Out of pocket max is $7500. Plan Type: EP1

My wife wants to have another baby, but the last one she had pre-eclampsia and we spent a total of 3 weeks in the hospital.I am fairly confident that she will hit the Out of pocket max.

Question 1: Why does Plan B look like the better bet even though it is cheaper than Plan A? Am I missing something?

Question 2: Is the "out of pocket max" truly a hard limit? Or is there some way for them to weasel more money from us after that?

Question 3: I Plan to put the premium difference ($3805) in a HSA to offset the birth costs. Would it be wiser to go with plan A with less HSA savings? Or plan B with more HSA savings?

Sorry for the long first post and thanks for reading! I've been wracking my brain for hours and I think that I just need another set of eyes on it.

[u/Mysterious_Luck4674]

This is also an easy question for ChatGPT

[u/lichprince → u/Mysterious_Luck4674]

Only if OP wants to get misleading, incorrect information back.

[u/93ParkAvenueUltra → u/Mysterious_Luck4674]

10/10 I don't know how to use ChatGPT.

[u/Mysterious_Luck4674 → u/93ParkAvenueUltra]

Super easy!Copy the text of this post, go to ChatGpt.com (or open the app, paste the text! Here’s what it said:

Here’s a simple explanation:

Question 1 (Why Plan B looks better): Plan B seems cheaper overall if you’re expecting to hit the out-of-pocket maximum. Plan A’s premium plus maximum out-of-pocket cost ($11,856 + $6,250 = $18,106) is higher than Plan B’s combined total ($8,050 + $7,500 = $15,550). So, Plan B saves you money.

Question 2 (Out-of-pocket max a hard limit?): Yes, it’s a true limit on covered medical expenses. After reaching it, insurance pays 100% for covered services.

Question 3 (HSA savings decision): Plan B is wiser because total cost is lower, plus higher HSA savings.

[u/93ParkAvenueUltra → u/Mysterious_Luck4674]

Holy crap that is cool. I started using it a few minutes ago. It's like smart Google. Not sure how much I can trust it though.

[u/yuricat16 → u/93ParkAvenueUltra]

I constantly check the sources on the AI summary that comes up when I use Google search, and the rate of error is alarmingly high. As examples: important details are confounded and the necessary distinction between two options is lost; info is sourced from another sector (or country) that may use the same terminology but have different definitions and regulations.

AI can absolutely be very helpful and accurate. And it can be wildly wrong while coming across with great confidence. You gotta check the source information. (If using a chat-style AI, as for the sources.)