Insurance Benefit Plans
(801) 406-9502
Health, Maternity, Life & Dental Insurance Benefit Plans Serving
Families, Self Employed & Small Business - One person at a time
High Deductible Health Plan (HDHP)
& Health Savings Account (HSA)
Highlights
Step 1: Apply for a Qualified High
Deductible Health Plan
(HDHP)
Example - Male 25, Female 25 2 Children
(as of Oct 2009)
BCBS $500 Deductible BlueAdvantage ValueCare Plan = $575.00 /
Month
Humana HDHP/HSA $8,000 Deductible Total HSA Plan
= $130.52/ Month
Premium Savings Each Month:
= $444.48 / Month x 12 Months = $5,333
/ Year
You can pay for an awful lot of Doctors visits
for $5,333 / Year, right?
Step 2:
Open an HSA Health
Savings Account and contribute up to the annual
maximum allowed each year. This amount goes up
each year
(ie 2009 maximum an Individual is $3,000. Family
plans can contribute $5,950)
Step 3: Pay for your Doctors
Office Visits, Prescriptions, and all eligible
medical expenses out of your HSA Health Savings
Account. Remember the HSA is YOUR money. It is
not controlled by the insurance company. Your
HSA contributions are Tax Free (in most cases)
meaning you will have a "Page one" deduction off
your taxes. So even if you don't spend a penny
on health in the current year, you get to claim
the full amount you contribute into your HSA as
a tax deduction as if the whole amount was spent
on medical treatment!
HSA Notes:
Contributions to your HSA account are usually
Tax deductible
Non taxable withdrawals from your
HSA for qualified health expenses
Capital gains and interest in
an HSA accumulate income tax free
There are no limits to the amount that may be
accumulate in the HSA
The
HSA can be used to
supplement retirement income after age 65
Health savings account funds can be used to pay
for maternity expenses
High Deductible Health Plans (HDHP), used in
conjunction with a Health Savings Account (HSA),
help you take control of your healthcare
dollars.
With HSA plans, you combine healthcare
coverage with the ability to develop equity
through a tax-advantaged savings account.
Who is eligible for an HSA?
Someone who is under the age of 65
Someone who can qualify medically to purchase
the plan
Note: Currently you can get an HSA through your
State's "Health Insurance Pool" or similar
program even if you currently have major health
problems
Someone who does not have other medical coverage
Someone who is not claimed as a dependent on
someone else's tax return
Who should buy an HSA?
Those who occasionally use their health
insurance benefits, or those who use it
often but are medically able to qualify for
the underwriting to get the plan :)
People who are interested in tax deductions
Anyone who wants possible overall lower health insurance
premiums
People who don't anticipate large health
care expenses, but if a major medical
situation arises they want it covered 100%
after you pay the deductible
Those who are interested in supplementing
their retirement benefits
Who should not buy an HSA?
Anyone who has an ongoing health condition
People who have high prescription drug costs
Those who utilize their health plan often
Those who have no need for a tax deduction
Those that are not comfortable with High
Deductible Plans
Those who need maternity to be a "covered
event" Note: Assurant has an HSA that has a
maternity option. BCBS, SelectHealth, Humana and
all other individual/family HSA plans treat
maternity as a "non-covered" event that means
you don't even get to take advantage of
in-network discounting. So if the bill is
$9,500, you pay $9,500. If you have an
Assurant HSA you can also purchase a $2,500 or
$5,000 maternity rider
You can give a few hundred dollars a month
to the insurance company and have them keep your
premiums whether you have health expenses or
not... OR...
You can open an HDHP for about half the premium
as a traditional plan and pay for your health
expenses out of your HSA. This means you
give the Insurance Company about half the
premium and only have them cover the major
medical "big stuff." And you get a great
tax break for running it through the HSA!
