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July 13, 2011
High-deductible Health Insurance With An HSA Works Perfectly
With inevitable rate hikes in individual health insurance premiums, the need to switch to a high-deductible health insurance plan is growing. Generally, insurance companies give out lower premium rates for those who have high-deductible plans. A deductible is a specific amount you have to pay every year before you can start receiving coverage. Plans with high deductibles are so popular because you can save a lot in terms of the premium price.
Pairing up your high-deductible health plan with a Health Savings Account (HSA) will help you lower your health care costs even more. By funding your HSA, you can comfortably raise your deductible as your HSA balance increases because you'll have the HSA as a backup should you need to pay for health care until you meet the deductible. Remember that every time you increase your deductible, your premiums are likely to go down.
To start an HSA, you'll need a qualified high-deductible plan. Not all high-deductible health insurance plans can be paired with an HSA. Deductibles on the eligible plans start at $1,200 for individuals or $2,400 for families. You can contribute up to $3,050 for individual HSA plans and up to $6,150 for family plans per year. You can use your contribution to lower your taxes so you'll save on premiums and taxes.
As all plans are subject to rate increases, having an HSA plan is not a guarantee that you won’t get hit by premium hikes. If you do and your health is good, you can switch to another health plan with no problem. To keep ahead of price increases, annually compare plans from leading insurers to determine if you are in the best available plan for your needs and budget. You can run instant quotes here with us at your convenience.
Posted by Wiley Long at July 13, 2011 11:17 AM