HSA Resources for Individuals & Families
For individuals and families looking for affordable health insurance options, HSA-qualified health plans offer the best solution by putting you, the consumer, in control of your health care dollars.
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. The insurance policies that are used, in conjunction with the HSA, typically come with a lower monthly premium. The money you save each month can then be deposited into your HSA to 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.
In the new world of consumer-driven health plans, you really need an expert to help you find and compare these plans for you and your family. Click here to learn about the free services available to you through OFM Benefits Consulting.