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Just as
car insurance doesn't pay for oil changes, Health Savings Account (HSA) plans
don't pay for routine doctor visits and prescriptions until your deductible is
met. Deductibles start at $1,150 for individuals and $2,300 for families.
The result is much lower premiums. Candace
De Long is a client of ours in Fort Collins, Colorado. She had originally
signed up for a co-pay plan from Blue Cross Blue Shield, for which she was paying
$408.10 per month. Her coverage was very rich in benefits, but after her
first year she reported that she really wasn’t using it much. After
reviewing her options, Candace decided to switch to an HSA plan with Blue Cross,
for only $240.30 per month, lowering her premium by 41%.
It Gets Better… HSA
plans allow you to deposit money into a special account to pay for future medical
expenses. Any money you put in is tax deductible, regardless of your income
level, income source, or even whether or not you use the money for medical expenses. Candace
told us that she was planning on maximizing her HSA contribution. Assuming she
is in a 28% tax bracket, this will save her $742 in income taxes. Subtracting
her $742 in tax savings from her $2,884 health insurance premium gives him a total
net health insurance cost for the year of $2,142 or only $178.50 per month!
This low
net premium is the main reason why HSA plans are becoming so popular.
How
to establish an HSA To
establish a health savings account, you must own an HSA-qualified
high deductible health insurance plan. First, review all the information
on the HSA Info page and check out our Q
& A section to familiarize yourself with HSAs. Then visit our
"How to" Guide to learn how to
choose the right plan, how to apply for health insurance coverage, and how to
set up your HSA. If
you would like assistance in choosing a plan, we are available for no-obligation
telephone consultations. We'll help you analyze available plans so you can
choose the one that's best for you. To schedule an appointment please call
us.
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