Health Savings Account Blog

1. Hire a health insurance agent. There are many independent health insurance brokers from all over the country, but you should only work with an agency that specializes in Health Savings Accounts. Why? The premium is the same whether you use a broker or deal directly with the carrier. Your broker interacts with the carriers in your area on a daily basis and will be better able to serve you and assist you with any claims issues. Also, as your broker we represent you, not the carrier so we will be ready to help you compare all the plans available in your market to help you make the right choice.

2. Choose a Health Savings Account (HSA). The purpose of any insurance plan including health insurance is to limit your exposure to financial risk. Health Savings Accounts accomplish this at a reasonable cost and it works like this. You pay for expenses at a discounted rate until you reach your deductible. Once the deductible is reached, your carrier will pay 100% of all claims. In exchange for a premium that is up to 50% less expensive that other plans, you accept responsibility for your medical expenses until the deductible is reached. We were recently able to save a client nearly $1,000 a month on his premium by moving him from a traditional plan to an HSA plan.

3. Choose a Higher Deductible. Most people are spoiled by having very low deductibles on their employer paid plan. However, the lower the deductible, the higher the premium. If you are young, the premium will be low even with a low deductible, but those of us who are older should choose a deductible of at least $2,500. A plan for a family of 4 where the husband and wife are both 35 years old could cost $680 a month while an HSA would cost only $250 a month. The savings clearly makes up for the higher deductible, especially if you don’t see the doctor very often.

4. Eliminate the Copayment. Sure, it is only $20 or $30 for you to see a doctor, but the cost of a plan with a low copayment and a low deductible can break the bank. You only pay the contracted rate any way so the copayment doesn’t really save you any money. A 35 year old husband and wife with two children would lower their premium from $430 a month to $280 a month. If you are not constantly running to the doctor, the $1,800 annual savings could be a huge financial boon to you.

5. Shop and Compare. Not only are there many different major carriers across the country but each carrier offers a multitude of different plans. The premium can vary widely from carrier to carrier so make sure you compare price and benefits before you make a decision. That’s where your independent agent can really help you with one stop shopping and comparing rates and programs for you.

6. Review your policy annually. Why? Carriers often come out with new plans every year so it is wise to have your agent keep you informed. Since the new plan will have no record of claims, it is often much less expensive than an older plan that has been on the market for awhile. Simply staying informed of new developments in the health insurance market can save you 30% or more in premium dollars. Here at HSA for America, we offer our Annual Comprehensive Policy Review for all our clients.

Learn more about Health Savings Accounts and how they can help you lower your health insurance premiums at: http://www.health--savings--accounts.com