I'm going to address this separately.
I will be paying around 215/month for HDHP family coverage from next year and my employer adds nearly the same amount in HSA. So from tax perspective should I continue this and withdraw excess contribution next year again? Is it allowed to do so ?
This is between you and your employer. For income tax purposes, if you stay enrolled in the HDHP in 2025, and allow the employer to make the $2500 deposit, you can withdraw it before April 15, 2026 and not pay a penalty, and keep the money instead of paying it back to the employer. It will be treated as taxable income, but it's still free money to you. The question "is this allowed" should be directed to your employer. Are you required to certify your eligibility for an HSA? If you don't take the insurance or the HSA, and rely on your wife's insurance, does the employer recognize that with any kind of incentive (since it reduces their cost?)
How they feel about giving you $2500 when you are going to withdraw it not for medical expenses, is up to them.
