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January 11, 2007
Voluntary Insurance Complements a Health Savings Account
A growing number of consumers believe Health Savings Accounts (HSAs) offer the right prescription for comprehensive health coverage. A recent survey of 1,000 Americans suggests potential growth for HSAs, providing more Americans become aware of the new accounts.
Because an HSA may require time to grow to pay out-of-pocket expenses, consumers will sometimes turn to other types of insurance to supplement an HSA. For some, voluntary insurance policies are the missing piece in their coverage.
Voluntary insurance policies can help strengthen primary health plans by providing cash benefits directly to the policyholder to cover out-of-pocket costs such as deductibles and loss of earning power.
Supplemental Accident Plans offer HSA-compatible coverage that can benefit a consumer in a number of ways, such as:
• Alleviating concerns that the HSA may not have enough money to cover out-of-pocket expenses such as deductibles, co-payments and other costs
• Giving the policyholder the option of not dipping into the HSA, thereby maximizing its benefits and allowing the account to grow for future needs
• Providing money that is paid directly to the policyholder, enabling him or her to choose how best to use it (e.g., living expenses such as mortgage, etc.)
• Improving employer relations and retention.
Even when medical expenses are covered through an individual's medical plan, loss of income and non-medical expenses can have a major financial impact. Regardless of major medical coverage, Supplemental Accident plans provide money paid directly to the policyholder to use any way he or she chooses.
Experts say voluntary insurance policies may be used to supplement the missing indispensable piece of a Health Savings Account.
Posted by Wiley Long at January 11, 2007 12:55 PM