| The
intelligent way to insure your health
Many people
pay way too much for health insurance plans they rarely use.
They are basically overinsured.
Others
look at the high premiums, and end up taking a big risk by
going without any coverage at all. They are way underinsured.
But virtually
everyone realizes the importance of carrying health insurance.
Having an appendix removed or tonsils taken out can easily
cost over $10,000. Charges for an accident or infection
which results in long-term hospitalization can exceed $100,000
before you know it.
Fortunately,
Health Savings Account (HSA) plans became available in 2004
as a way for families and individuals to get high quality
health insurance at an affordable price. They are offered
by Blue Cross Blue Shield, Assurant, Golden Rule, Unicare,
and many other insurance companies.
Over 1
million people have already signed up, a number expected to
grow by leaps and bounds in the coming year.
Lower
your health insurance premium by 30 - 50%
Just as
the purpose of automobile insurance is not to pay for new
wiper blades and oil changes, the purpose of health insurance
is not to cover routine doctor visits or prescriptions.
The purpose of insurance is to protect against unexpected
expenses.
If automobile
insurance paid for the expected expenses like tire rotations,
it would cost a fortune. (So would a tire rotation, by the
way).
Intelligent
consumers understand that an insurance company is not going
to agree to pay for small expenses, unless the premium covers
their cost and makes them a profit. If you know you're
going to go to the doctor 4 times this year, would you rather
pay the doctor yourself, or pay your health insurance company
to pay your doctor?
Deductibles
for HSA plans start at $1,050 for individuals and $2,100 for
families. This is an amount that can easily be put on
a credit card or paid off incrementally if the funds are not
immediately available. Most plans then pay 100% of all
medical expenses after the deductible.
And
the premiums are substantially lower than traditional
health insurance plans that cover doctor visits with a co-payment.
| |
For
example, a 45 year old couple with three children
in area code 80525 would pay $807.60 per month
for a $500 per person deductible 80/20 plan
with Blue Cross Blue Shield. A 100%
plan with a $5,000 per deductible with the
same insurance company would cost only $435.90
per month, a savings for your family of over
$371 every month! |
|
|
But that's
not the only place HSAs save you money…
Reduce
your income taxes up to $1,700 each year
A change
in the U.S. tax code allows anyone with an HSA-qualified plan
(not all health insurance plans qualify) to put money away
in a special health savings account that can be used to pay
the deductible and other medical expenses. Any money
you put in this account is 100% tax deductible.
Depending
on your health insurance deductible, you can put up to $5,450
into this account every year. Yet the money is always
yours to keep, and is 100% tax deductible, regardless of your
income level, income source, or even whether or not you
use the money for medical expenses.
If you
need money from your HSA to pay medical expenses, you can
withdraw it at any time. If you don't need it, it grows
tax deferred like an IRA.
Build
an additional retirement account of several hundred thousand
dollars
Investment
money placed in a tax-deferred account grows much larger,
much more quickly. For example, if someone in a 28%
tax bracket invests $450 per month for 25 years at a 10% return,
they'll have $242,562 after taxes. If the money is invested
in a tax-deferred account like an HSA, it will be worth $340,213.
That's $97,751 more.
Even by
investing only the money you save by having an HSA-qualified
plan instead of a traditional health insurance policy, your
HSA could be worth thousands of dollars in just a few years.
TAX-DEFERRED
COMPOUNDING BUILDS WEALTH FASTER
How
to choose an HSA
First,
check out our HSA Info and
Q & A section to familiarize
yourself with HSA-qualified health insurance plans.
Then run some quotes on our instant
quote system. Once you have chosen the plan
you like, you can apply online or print out an application
and send it to us.
After
applying for HSA-qualifying health insurance coverage, you
can set up your HSA. There are several administrators
to choose from. You can see our recommendations on our HSA
Administrator page.
We can
also help you choose the best plan, as well as answer any
questions. Just email us and let us know when would
be a good time to talk. Give us your age(s) and zip
code. This will give us the opportunity to analyze the
available plans in your area before we speak.
|
