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Is a High Deductible Plan right for me ?...
Many people search for affordable health insurance quotes online but the challenge is getting the answers without wasting hours and hours.
Whether you're still evaluating your options for medical coverage, or you're already covered by a conventional health care plan through an HMO or PPO, you should be aware of a fairly new option for health insurance called a High Deductible Health Plan.
Started in 2003 as an alternative to the plans offered by HMOs and PPOs that promise low deductibles but charge high premiums, a High Deductible Health Plan with a Health Savings Account or a Health Reimbursement Arrangement provides traditional medical coverage and a tax free way in which to build funds to cover future medical expenses. The main idea was to lower monthly premiums without compromising challenge.
These plans are not for everyone. When you choose a High Deductible Health Plan, your income level determines whether you are eligible for an HSA or an HRA. If you are enrolled in Medicare, you are not eligible for an HSA. The HDHP with HSA or HRA gives you greater flexibility in how you use your health care benefits. You can pay your deductible with funds from your HSA or HRA. If you have an HSA, you can also choose to pay your deductible out-of-pocket, allowing your savings account to grow. |
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Understand that in order to get an accurate quote some health and personal information is required. |
Plan Benefits
There are certain advantages associated with theis plan. Some of these include:
Once you sign up, you may be eligible for a Health Savings Account in which the money you deposit, accrue on interest, and withdraw for health-related expenses is tax-free
Tax-free withdrawals from the supplementary Health Savings Account may be used to pay for out-of-network providers at any time, without prior approval from your insurance carrier
Unlike a traditional Medical Savings Account (MSA), the balance in your HSA is portable and
After you turn 64, the balance of your HSA may be withdrawn, tax-free, for any reason
Plan Drawbacks
But there are a few disadvantages that you should be aware of when deciding between an HDHP, HMO, and PPO for your health care needs. Here are some of the drawbacks:
Before age 64, withdrawals from your HDHP's Health Savings Account that are not applied toward medical expenses are not tax-free; instead, that sum must be added to your gross annual income, where it will generate an additional 10% tax
A minimum of $1,100 in annual deductibles for Self Coverage, or $2,200 for Self and Family Coverage
Although anyone can sign up for an HDHP, you must meet eligibility requirements to qualify for the supplementary Health Savings Account
Is a Health Plan with High Deductibles Right for Me?
An HDHP with an HRA or HSA may be an attractive option if you are looking for a tax-free way to save money for future medical expenses, or if you wish for greater flexibility with the way you use your medical benefits. By signing up for an HPHD, you can expect to pay less money per month, while retaining control over which doctors you see and accumulating the benefits you don't use in an HSA.
Request a health insurance quote and speak with a licensed agent who can provide you with information, answer your health insurance related questions and help you determine which kind of health coverage is best for you.
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