Frustrated With Your Company's Health Insurance?
First of all, more than half of U.S. businesses with less than 50 employees no longer offer health insurance benefits for their employees. So be thankful that your company is trying to take care of you and your family at all.
As health insurance premiums continue to skyrocket every year due to an exceedingly flawed healthcare system, your employer has been forced to shift much of the financial burden to you in the form of higher premiums, deductibles and co-pays. Unless your employer is presented with other options, such as HSA-qualified health plans, it will probably happen again.
But what is an HSA-Qualified Health Plan?
HSA-qualified health plans are nothing more than a different way to pay your smaller medical bills, while having an affordable health insurance policy for larger medical expenses. Most major health insurance companies now offer HSA-qualified health plans with much lower monthly premiums. Most of this premium savings can then be deposited into your HSA to help you pay for day-to-day, qualified medical expenses (hyperlink) with pre-tax dollars, at the insurance company’s PPO discount. These include expenditures that count towards your insurance deductible, as well as a tremendous number of things that do not count towards the insurance deductible such as dental, vision and even some over-the-counter medications.
In other words, when other health insurance plans require you to “prepay” for your medical expenses through higher premiums, HSA-qualified health plans put you in control by allowing you to save that money in your health savings account and spend it on your terms, not give it to the insurance company. The best part is...if you don’t spend that money, you keep it.
The Three Moving Parts
Most traditional health insurance plans are made up of a fixed annual premium and three moving parts that you are required to pay for each person listed on the policy... the deductible, co-insurance and (never-ending) co-pays. When combined, and added to the annual premium, these components make up your total-out-of-pocket liability. However, since co-pays do not typically count toward out-of-pocket maximums, we have seen simple co-pays add up to thousands of dollars per year above an individual’s expected out-of-pocket maximum.
Due to government mandates, HSA-qualified health plans are much simpler. In most plans, you have a much lower premium and only one moving part, a calendar-year deductible. That’s it. Once that deductible amount is reached, most plans pay 100% for the rest of the calendar year (you pay no more out-of-pocket). When combining the lower premium with the single deductible, your total-out-of-pocket liability is usually much lower than traditional health insurance plans.
There is a good chance that your employer has already heard of HSAs, but they’ve probably been told that these plans don’t work, or are worried about making yet another change to the current plan. Your company needs an experienced partner to help find the right health insurance plan, and you can help get the process started. Click here to learn how OFM Benefits Consulting can help you and your company make the transition to consumer-driven health plans.