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How
to Choose an HSA-qualified Health Insurance Plan
HSA
plans are simple and easy to understand. If you need
some basic information on how Health Savings Accounts
work, visit our HSA Info
page, and our Q and A
page.
When
you are ready to choose a plan, follow the directions
below. It usually takes no more than 10 minutes
or so to choose the best plan for your needs.
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Get
an Instant
Quote. Our instant quote engine
can rapidly show you the available plans in your
area, so that you can get an overall feel of what
premiums will be for the different HSA plans.
Request an effective date no later than the 28th
of the current month. With most companies
this will enable you to lock in current rates
for 12 to 24 months, and beat any pending rate
increases. To see a short video explanation
on how to run quotes and compare plans, see our
HSA
Instant Quote Video.
-
Compare premiums. Our quote system
will initially show you just the 100% plans.
These are the most popular plans, and can make
it easier for you to compare rates among different
companies. You can lower your premium by
choosing a plan that pays 50, 70, or 80 percent
of qualified medical expenses until a certain
out-of-pocket limit is reached, before covering
100%. To show these plans, go to the Customize
Search tab at the top of the page, and change
Your Coinsurance from <10% to “Any”.
For
most plans there is only one deductible for the
entire family. A prominent exception is
the Right Start HSA plan, which has a per person
deductible.
For complete instructions on how to compare your
instant quote results, view our 11 minute HSA
Instant Quote Video.
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Decide
if you want a plan that pays for outpatient charges,
or if you want a more catastrophic plan that only
covers charges while you are hospitalized.
You can lower your premium by choosing a plan
that covers only inpatient doctor visits and prescription
drug expenses.
You
can quickly see if the quote you're looking at
covers these expenses by clicking the Details
link next to the instant quote result, and looking
up Office Visit and Prescription Drugs.
The following plans cover outpatient doctor visits
and prescription drugs, subject to the deductible
and coinsurance (note that not all plans are available
in all states):
The
plans vary by state, but the following plans generally
do NOT cover outpatient doctor visits, and
are usually less expensive than other plans:
The
following plans do NOT cover outpatient prescription
drugs (though they may provide a discount card),
and may also be less expensive than other plans:
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Consider
adding a supplemental accident plan.
Because these accident plans are very inexpensive,
you may be able to keep your premiums lower while
greatly reducing your exposure for the type of
claims you're most likely to need your health
insurance for - an accident. Stand-alone
accident plans that cover $5,000 or $10,000 after
a $100 deductible can be viewed on our Accident
Plans page.
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Do
a final review and choose your plan.
You can see additional coverage details on our
High Deductible Health
Insurance Plans page where you can also
download a company brochure.
You
may also wish to check the insurance company's
PPO network to see which doctors and hospitals
are considered in-network providers. Having
access to a PPO network can mean substantial discounts
in what you pay for your health care, even before
you meet your deductible. The link to each
plans PPO network can be found on that company's
page on our site.
"You
provided excellent service and you really made
the job of finding the right coverage for me
easy. I can't think of anything you could
do better."
I
was looking specifically for a HSA compatible
plan when I came across your site. All
the important information is certainly there
and easily accessible. I learned about
the many investment options available through
HSAs from your site.
I
will definitely fund my HSA, in fact I will
probably go ahead and pay my premiums and medical
expenses out of pocket (post-tax), because I
want to maximize my tax free compounding interest
in the HSA account.
My
previous insurance plan cost nearly $1,000/month
with $5,000 deductible and 10% coinsurance thereafter.
My HSA compatible plan costs $194/month with
$10,000 deductible and pays 100% thereafter.
Even if we meet our deductible we are about
even with the old plan. If we remain healthy
we will be well ahead.
My
only regret is that I did not act quickly enough
to have my plan in place before the new year,
so my maximum contribution is slightly lower
this year. I have to say, though, that
you did warn me about this in your emails.
You
provided excellent service and you really made
the job of finding the right coverage for me
easy. I have already recommended you to
others. I can't think of anything you
could do better.
Rob
May
Ypsilanti, MI
Read
More...
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How
to Apply for Coverage
Applying
for HSA health insurance and establishing an HSA is
quick and easy. Most companies allow you to apply
online. Or you may simply print out an application
and fax it to us at 866-284-0082, or mail
in your application. All applications are
submitted under the name of Wiley Long, the
president of HSA for
America. If you are working with
one of our advisors, that person will be noted on
your record as your assigned contact.
If
you want to lock in current rates, you should request
an effective date no later than the end of the current
month. This will guarantee your rates won’t
go up for the next 6 to 36 months, depending on the
plan. To make sure you get your requested effective
date, you should send in your application as soon
as possible.
Apply
Online
The
easiest and most efficient way to apply for an HSA
plan is online through an insurance company's secure
online application. This will enable you
to avoid the hassles of filling out a paper application,
and will speed up the process by instantly transmitting
your information directly to the insurance company’s
underwriting department. The
application usually takes about 10 minutes
to complete. Most, but not all insurance companies
offer an online option.
You
may apply online by running instant
quotes, and apply online for most plans we
offer right from the quoting system's results page.
Or simply select the apply online link below for the
plan you are interested in.
Before
beginning the online application, we recommend that
you have the following information available in order
to speed up the process:
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Your doctors’ names, addresses, and phone numbers
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Medications you currently take or recently took,
including dosage and frequency
- Dates
of hospitalization
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The name of the plan for which you are applying
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Your requested effective date
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Your credit card information to cover the initial
premium
All
online applications are 100% secure. Most use
SSL certified 128 bit encryption. Anthem
uses Sun's Java Cryptography Extension which implements
RSA Laboratories, "PKCS #5: Password-Based Encryption
Standard," version 1.5, Nov 1993.
Mail
or Fax an Application
You
can download an application for the plan you are interested
in, print it out, fill in all the required information,
then fax it to us toll-free at (866) 284-0082
or mail it to us at the address below. You may
also fill out our Application
Request Form and we will send you an application
right away.
Eligibility
Individual
and family health insurance applications go through
an approval process called “underwriting”.
Because health insurance is designed primarily to
cover you for the unexpected, a company may put a
waiver on pre-existing health conditions. If
you have cancer, heart disease, or other serious health
conditions you will likely be declined. Some
companies also reserve the right to rate the premium
up to cover the cost of current medications, though
this is less likely to happen with HSA plans.
Insurance
companies also look at the application in regards
to your height and weight, and may charge an extra
premium if you are over their weight guidelines when
you apply. The height and weight criteria for
each health insurance company is confidential to their
underwriting department, and we are not allowed to
post that information. But we have put together
a Build Chart
that shows the maximum amount you can weigh and still
be confident that you will not be rated
up due to your weight with any company.
If you weigh over this amount, please email us and
we can let you know which insurance company would
look at your situation most favorably, and what the
likely rate-up would be.
If
you have questions in regards to your eligibility
for coverage due to medical conditions you have been
treated for in the last ten years, please send us
an email with your question and we will contact you
in regard to your best options.
See
the chart below for instructions to apply with each
insurance company:
If
you are searching for non-HSA insurance, we also offer
Nationwide to our customers:
What
Happens after you Apply
When
you apply for a health insurance plan through HSA
for America, we immediately submit
the information to the insurance company's underwriting
department. Before your policy is issued it
must be approved. This process can take anywhere
from an hour, to three or four weeks, depending
on the insurance company and your particular health
history.
We
monitor your application while it is in the underwriting
process, and keep you informed every week. We
use our experience and connections to make sure your
policy gets issued as quickly as possible. If
any additional information is needed, we'll let you
know. We'll inform you as soon as you've been
approved, and make sure that you're happy with your
coverage.
We're
Here to Help
As
you've probably noticed, our website is very complete
and should answer most of your questions. However,
if you need personal assistance, we are happy to help.
You may communicate with us in the following ways.
-
If you have a quick question for us, the best
way to get an answer is to fill out our contact
form. We do return emails as quickly
as possible, but are often on the phone consulting
with clients and so are unable to take incoming
calls.
-
If you are ready to apply, and need to
talk to someone briefly before applying,
please fill out our contact
form with the word URGENT in the
message, or call and ask the receptionist to try
to patch you through to a consultant. If
you are unable to reach us, tell the receptionist
to mark your message as urgent, and we will get
back with you as quickly as possible. (Please
note: We do NOT do business in the following
states: AK, DE, MA, MD, ME, MS, ND, NH, NJ, NM,
NY, RI, SD, VT, WA, and WV.)
- If
you are serious about choosing a plan, and are
looking at a premium of over $300 - $500 per month,
you may want to schedule a consultation with us
before you sign up for a plan. We will help
you fully analyze all your options, let you know
the pros and cons of the various plans you are
considering, and give you our professional opinion
as to which plans will best meet your needs.
We will then help you get enrolled with the plan
you choose. To learn more about our paid
consultation service, click here.
How
to Establish your Health Savings Account
Once
you have applied for a high deductible health insurance
plan, you'll want to go ahead and set up your Health
Savings Account. You are not required to establish
an HSA, but by funding the account as soon as possible
you'll be able to take advantage of the tax-deductions
and tax-deferred growth that HSAs offer.
To
establish your HSA, follow the steps below:
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First,
you will need to choose the bank or trustee that
you would like to administer your HSA. While
some insurance companies offer to administer your
account (only if you have their insurance plan),
you may also choose to work with an outside, third
party administrator.
For
a list of companies offering HSAs, please visit
our HSA Administrator
page. There you'll find information on fees,
interest rates, and investment options.
If
you plan on keeping the money invested in an interest-bearing
savings account, you'll want to initially look
at the fees that the various administrators charge,
and choose one with lower or zero fees, such as
American Charter Bank.
Many of our customers choose to place their HSA
funds with an administrator that offers investment
options, such as HSA
Resources or HSA
Bank.
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Once
you have chosen your administrator, you will need
to download their enrollment form. You may
obtain these forms on our HSA
Administrator page by clicking on the
name of the company you've chosen. At the
bottom of the administrator's web page, you can
obtain their enrollment form by clicking the link
that says "Open their Application."
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After
downloading the proper enrollment form, you will
need to send it, along with your opening deposit,
to the address listed on the enrollment form.
You will receive your introductory packet, including
complete instructions on how to make future deposits
and the options you have for withdrawing your
funds, in approximately two weeks.
How
to Maximize Your Tax Benefits
An
HSA plan is really a pretty simple concept.
You have a high-deductible health insurance plan,
which you hope to never use. But if something
big does happen, it will protect your assets and cover
your medical expenses. But there are a few things
that you should know that can make a big difference
in how much money you spend, and how much money you
accumulate in your account.
Because
HSA contribution limits are based on the number of
months during the year in which you have a qualifying
health insurance plan, you should get your coverage
in place as soon as possible.
There
are basically three different strategies you can take
when deciding how to fund your health savings account.
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Put no money in the account (or the minimum amount
required to open the account), except when you
incur a medical expense. This strategy allows
you to legally "launder" any money used
to pay medical expenses. In other words,
by depositing money into your HSA, then immediately
withdrawing it to reimburse yourself for medical
expenses, you are making your medical expenses
all tax-deductible. You may want to use
this strategy if you are on a tight budget and
want to keep your cash outlay as low as possible.
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Fully fund the account, or at least put in as
much as possible based on your budget. Take
money out of the account any time medical expenses
are incurred, and let the rest grow tax-deferred.
This strategy will maximize your tax deduction,
while making your HSA funds available to pay any
non-covered medical expenses before your deductible
is met.
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Fully fund the account, but pay all medical expenses
from a non-HSA account. Reimburse yourself
for medical expenses at a later date. This
strategy will allow you to maximize your tax deduction,
and will also allow you to maximize the tax-deferred
growth of your HSA. You can then reimburse
yourself, tax-free, at any time in the future
for medical expenses incurred over the ensuing
years. (For an example of this strategy,
see Maximize
Your HSA, Issue 3).
To
maximize the potential growth of your funds, you may
want to make your HSA deposits as early in the year
as possible. Any growth in your account is tax-deferred,
like an IRA.
Once
you get your health insurance plan established, you
may want to set up a Health Reimbursement Arrangement
so that your business can cover the cost of your health
insurance and other medical expenses, further reducing
your taxes. See our HSA
for America Additional Benefits page
for more information.
How
to Keep Your Health Insurance Premiums Low
- Raise
your deductible as your HSA account grows.
When
you fund your account you build up a financial "cushion"
which allows you to raise your deductible as your
account grows. Every time you raise your deductible,
your premium should go down.
By
the way, don't forget that every time you fund your
account you get an instant tax-deduction. When
you offset the tax savings against your premiums,
you'll find your net cost for an HSA plan can be very
low.
The
maximum allowable contribution goes up every year
with the rise of the Consumer Price Index. In
2008 the individual contribution limit is $2,900,
and the family limit is $5,800. So each year
you can deposit greater amounts into your HSA and
continue to raise your deductible, if you choose.
- Stay
healthy, so you can switch plans.
All
health insurance plans have rate increases.
If a rate increase happens to you, you can switch
to a different insurance company - but only if you
pass their underwriting requirements. If chronic
disease develops, you may be stuck with your current
plan, and its accompanying rate increases, for eternity.
Or at least it may seem that long…
If
you pay attention to the pharmaceutical commercials,
you learn lifestyle really has nothing to do with
disease, and it is natural and healthy to be on many
medications for the rest of your life, which will
then solve your health problems.
If
you pay attention to the science, you know the truth
is quite different. It appears lifestyle is probably
95% of the picture, and we know the occurrence of
degenerative disease can be dramatically reduced and
even prevented.
We've
found many HSA owners are interested in wellness,
and disease prevention. After all, they're paying
for their own doctor visits if they do get sick.
We also believe it is because HSA owners are "forward
thinking" people, and like to plan for their
future - both financial and physical. You can
improve your odds of excellent health with just a
few key habits:
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Eat
very high quantities of fresh vegetables and fruits.
Shoot for 35% of your calories. This will
lower your risk for diabetes, high blood pressure,
heart disease, cancer, and more.
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Limit
your intake of sugar and starchy carbohydrates
like bread and pasta. The majority of health
problems in the U.S. are related to metabolic
diseases that involve insulin resistance, a direct
result of eating too many processed foods.
-
Exercise
and lift weights. Exercise guru Jack La
Lanne recently turned 93, and he says if you have
muscles you never feel old.
- Compare
your plan to other available plans at least once a
year, or whenever you get a rate increase.
Often-times
people keep their plan much longer than they should,
and end up paying much more than they should.
If your rates go up, you can compare a wide variety
of plans on our Instant
Quote System. If you have your coverage
through HSA for America,
we automatically do our Annual Comprehensive Policy
Review, giving you an analysis of available plans
any time we are notified of a rate increase or a change
in your current situation.
- Subscribe
to Maximize Your HSA.
Maximize
Your HSA is a free monthly newsletter we publish
via email, where we keep you informed on innovative
ways to lower your health insurance costs, lower your
health expenses, and maximize the benefits you get
from your HSA.
You
can also keep up with current news and information
on Health Savings Accounts by visiting our HSA
Blog.
How
to Reduce Your Medical Expenses and Income Taxes
HSA
for America has several free programs
that give you access to the lowest wholesale prices
on lab tests, prescription drugs, and even hospital
bills. Learn how to track your medical expenses
for tax purposes, and how to establish a Health Reimbursement
Arrangement to lower your taxes even further:
HSA
for America Additional
Benefits.
How
to Save Money on Plans for Small Groups
Group
coverage has become quite expensive, making it increasingly
difficult for the small business owner to provide
health insurance coverage for his or her employees.
An alternative we recommend for healthy small groups
of less than 20 employees is to let the employees
sign up for individual health insurance coverage instead
of a group plan. Individual plans are underwritten,
so not everyone can qualify. But as a result
they are much less expensive, typically costing half
of what group plans charge. The employees benefit
by having permanent coverage that they can take with
them if they ever leave the business.
If
you would like to help your employees with the cost
of their health insurance, in most states you can
set up a health reimbursement arrangement, or HRA,
which will reimburse employees for the cost of their
health insurance as a tax-free fringe benefit.
To learn more, see our Small
Group HSA Plans page.
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