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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 $1,100 for individuals and $2,200 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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