Health Savings Account Blog

I have been trying to get an HSA in RI for the last 2 years. The October 1 2005 rollout date has been changed for BCBS of RI to April, 2006, I've been told because they are focussing on the new Medicare Prescription Benefit. I have been unable to get 2006 HSA pricing from UHC. RI apparently is an unattractive market for insurance companies because of the State mandates for insurance. The insurance companies that are doing business here don't seem to be enthusiastic in their marketing of HSA products.

Yes. It's true. HSA health plans are here in the small group market in Rhode Island -- for a while anyway. The only way it was going to be "passable" if you will, by the legislature, was if there is a sunset provision added.

Anyway, to look on the bright side of things, right now there are HSA qualified high deductible health plans that give BETTER worst case scenario protection than the most expensive co-pay plans (because they will eventually cover you 100% which a co-pay plan NEVER will) that will save a business owner at least 40% of his current health insurance premiums (of the stupid $10 or $15 office visit co-pay plan).

A good health insurance agent should be able to structure the plan so that both employer and employees will end up in a win-win situation with BETTER COVERAGE for LESS costs for everyone. There is usually MORE than enough savings, when switching from an overpriced co-pay plan to certain HSA qualified plans to fully fund the employees entire deductible which would leave them with the equivalent of 100% coverage!

What is so great about an over priced co-pay plan anyway when you think about it? Does't it just keep costing you more and more money every time you pay a co-pay? What if you were sick enough to be on six of the most expensive Rx drugs and had to pay a $50 co-pay for each? Wouldn't that so-called "best" $10 co-pay plan then cost the employee $300 per month just for the Rx copays? Why on earth would anyone in their right mind choose that over 100% coverage plus tax savings to boot?

I know I've come across many Rhode Island businesses who are wasting a terrible amount of money on overpriced $10 office visit co-pay plans -- in fact some are overpaying by as much as $10,000 per year per employee! Part of the reason for that is the unsuspecting business owner delegates the health insurance shopping to an office manager who never passes along all the options to the owner - ESPECIALLY those that might mean that they personally might have to be responsible for a DEDUCTIBLE (God forbid).

Even BEFORE HSA plans started to be marketed United Healthcare had some of the most sensible plans with just Rx co-pays and a single $1000 or $2000 deductible that were about half of the expensive co-pay plans which meant a savings for a family of over $7000 in premiums. Isn't that enough to cover a $1000 or $2000 deductible? Or does it make more sense to pay $7000 more every year just so if the employee gets sick once very 5 years he won't have to pay a $1000 deductible? Many Rhode Island business choose the latter and then just complain about the high cost of healthcare as if there isn't anything they can do. WRONG! There is a lot you can do! Give yourself the gift this Christmas of a more sensible health plan that will put 40% savings in your pocket!

High deductible health plans used with HSAs in combination with a customized HRA or health reimbursement arrangement, in this day and age, are the ONLY way for a small business to get REAL RELIEF form escalating health insurance costs.

The other small item would be to implement Senator Marc Cote's health insurance reforms introduced last year, which if could have been heard and passed last year, would have brought two health insurers back to our state by now - doubling the number of carriers in our state!

Of course the Attorney general nixed one of the reforms and the DOH nixed another. I learned first hand that Rhode Island regulators value keeping their current tough insurance regulations over changing them even if doing so would bring two carriers back to our state and lower health insurance costs! Yes it is TRUE! We got a commitment from John Alden's parent company that John Alden would retrun along with another of their subsidiaries if the reform package was passed. This would have meant for the first time in 3+ years, affordable health insurance would begin to once again be a reality in Rhode Island!

States with regulations like Senator Cote proposed, have numerous health insurance choices and plan costs that are less than half of what ours our in Rhode Island.

I think besides business owners taking a PERSONAL INTEREST in taking advantage of the HSA plans for their businesses, we all need to encourage members of the Senate Health and Human Services Committee MAKE SURE they pass Senator Cote's reforms THIS YEAR in spite of protests from the Attorney General and the Dept of Health.

Then we'd all see REAL RELIEF from unaffordable health insurance costs in addition to more choices and finally there would be some low cost HSA plans for individuals and families for the first time in Rhode Island.

Hi Emily,

I don't have a comment but I have a question. I will be 65 in June. I signed up for Medicare and for plan 65 select c. Today I went to Walmart to sign up for Humana for drug coverage. I don't take any drugs and that seemed like my best option.

The rep gave me information about a different plan called Pacificare. Have you heard of this plan and what do you think about it.

Thanks for any info you can give me.

Terry,

I hope you signed up for the Humana Standard plan for $7 and change per month. You can always switch - one time before your annivesary date if all of a sudden your situation changed and certain drugs you started to take were not discounted deeply enough. The most CRUICIAL thing EVERY Rhode Island senior must do is sogn up for something by 5/15 of this year (06) so they won't be subject to the 1% per month penalty
that you might wait to finally sign up. If a plan is $30 per month and you wait until 12/06 to enroll, it will cost you $2.10 more every month or $32.10 per month.

Also, those independent health insurance agents and brokers like myself have access to special programs which painstakingly analyze and determine which, of all the Medicare Rx plans there are for seniors, that are BEST for them based on the specific prescriptions they take.
If you or any senior reading this wants to contact me for more information, feel free.

In Rhode Island, are any insurance companies other than Blue Cross/Blue Shield offering high deductible health plans that qualify for use with the federal income tax benefits from a Health Savings Account?