What are my options for high deductible health insurance plans? What are the advantages of getting this type of health insurance instead of getting the traditional HMO or PPO plans?
A good thing about high deductible health insurance is that this type of health plan can have a Health Savings Account (HSA) attached. The HSA allows you to deposit pre-tax money into a savings account. The money you put in this account can be used to cover medical expenses that your health insurance plan might not cover. Money you withdraw from this account won’t be tax deducted so long as it is used to pay for medical costs. Your savings in an HSA will also carry over to the following year. If you get your HDHP through your employer, it might be coupled with a Health Reimbursement Arrangement (HRA) which is only funded by the employer. The HRA works similar to an HSA, but it’s solely up to the employer to decide which employees will receive the fund in case of emergencies. When you leave your job, you can’t take part of the HRA funds with you or roll the money over to a new account. High deductible health insurance plans are offered through various companies. Plans are all similar in terms of deductible amounts. Usually, deductibles of HDHPs for individuals range from $1,100 to $5,500, while the deductibles range for families is from $2,200 to $11,000. Some HDHPs allow you to choose either in-network or out-of-network medical providers. But you should keep in mind that using in-network physicians, specialists, and hospitals will save you more money. Answer by general public - July 3, 2009 @ 3:25 pm No CommentsNo comments yet. Leave a comment |
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Many people are now realizing the advantages of having high deductible health insurance plans. This type of insurance policy was not widely popular when it was introduced a few years ago because of the HDHP’s high deductible that members had to pay initially. Now, many insurance companies are offering high deductible health plans to qualified individuals.
