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August 05, 2010
Health Savings Accounts: Do They Work With Low-cost Plans?
High-deductible health insurance plans, in general, offer lower premiums in exchange for the insured accepting part of risk. They agree to pay for their healthcare costs upto an annual deductible. In effect, they are putting a cap on their out-of-pocket expenses. The high-deductible health insurance plans that are qualified to be combined with Health Savings Accounts also offer lower-cost premiums.
Leading insurance companies (such as Assurant HSA and Golden Rule HSA) have rate guarantees for up to three years. That enables you to lock in premium rates long-term. Most plans inevitably raise rates so this can give you an advantage. If premiums do decrease, you can still move to a better HSA plan when it becomes available, as long as your health allows you to change plans without medical underwriting concerns over pre-existing conditions.
With much of healthcare reform still being decided, it may pay to lock in the HSA plans and the rates you like now. If the situation changes, you'll have the plan you preferred and you can still change should a better deal come to market.
Posted by Wiley Long at August 5, 2010 12:54 AM