HEALTH Insurance.....Who do you use? What kind of Coverage do you have?

I have a HSA as well. Many times after paying the premiums and all, there has been a lack of funds to put in it. Since I have not been to the doctor since 2006 except the annual DOT crap, I really have not needed to fund it.

 

I like having a HSA plan as well. Lot better deal than those 80/20 plans. I am 53, smoker. Wife has preexisting thyroid problem. A Blue Cross/Blue Shield plan for us is around $370 a month, $5 million lifetime payout, $5K annual deductable. At least with a HSA plan, all out of pocket and premiums are tax deductable and there are no co pays. doesn't matter if I have a $100K procedure done, the out of pocket for the year is only $5K. And what I don't use out of my Health Savings Account just rolls over and collects interest. Then, at age 65, I can withdraw money out of the Health Savings Account for anything I want, just like a IRA or 401K plan. I checked recently regarding how much a similar BC/BS plan would be for a healthy 30ish person and it is less than $100 a month in my state. Probably next year I will move towards a $10K deductable (since HSA has funds built up). That will drop the premiums on the insurance for us. Was a darn good business move getting an HSA plan.

 

Another thing I like about the HSA is that I get the contract discounts in network. Alot of times this will cut my bill by 60% or so on the deductible part I'm responsible for. Also our plan pays for annual checkups, mammograms, etc. from the first dollar deductible waived.

 

Nice thing about HSA's, you are sheltering those deposits into the HSA from taxes. Lets say you dont have enough in your HSA right now, and something happens, you can write a check to your HSA, then use an HSA check or debit card to pay your deductible. You have instantly sheltered up to your yearly contribution limit ($3k for singles, $5950 for families).

Greatest insurance invention since First Dollar Coverage.

 

Yeah, but when you have a $60,000 claim, you'll understand the value of insurance.

 

Not really. If it is pre existing, it would be no different.

I will just make monthly payments through the HSA.

 

Wtf is "HSA"? Sorry never been a contractor so i've never had to deal with my own insurance, only the company stuff. Is the purpose of having one to stack up with having a high deductible plan? So you can use money from an HSA for little doctor visits for your cuts and bruises and little crap and then use the high deductible stuff for a big surgery?

 

No matter what health insurance you have, there are out of pocket expenses. Co pays, deductables, etc. With a traditional 80/20 health plan like most have thru their company, you will still have to shell out pocket money for a lot of stuff. But the down side, you cannot deduct that out of pocket on taxes until it reaches 7.5% of your adjusted gross income. Their are a lot of fine print crap that, in the long run, will cost you a lot more than you realize.

With an HSA (Health Savings Account) and a qualified health plan, you have a predictable max of a set amount each year that you will spend for medical and it is all non taxable. The deductable will vary with with which plan you have. You will pay for for all medical expenditures up to the deductable amount, then insurance pays for everything with NO co pays. And, since you are paying that deductable out of your Health Savings Account, there is no income tax. No threshold to meet before you can deduct on taxes.

As was stated, your HSA qualified plan will be thru a traditional insurance carrier like BC/BS and you will have rates with preferred providers just like a 80/20 plan. And you can purchase a lot of stuff out of the Health Savings Account that you would have to shell out pocket money on with a traditional plan. The IRS has a list of what you can spend on out of your HSA. There is stuff in that list I probably will never spend money on, it's pretty long.

Having an HSA and qualified health insurance is more like having auto insurance. You don't use you auto insurance to replace your brakes! You use it for catastrophic occurances like a theft or a wreck. With a HSA plan, you pay for all the little stuff and doctors office visits up to the limit or your deductable, then if you have health issues that exceed your deductable, your insurance pays all of the bills. Since most will not have health issues that exceed the deductable in a given year, the actual cost for the insurance is far cheaper than a traditional health plan.

So you get the best of everything.... you get full deductability of ALL medical costs, you get to stash money, without taxation, in your HSA just like a 401K, and you get cheaper cost health insurance. And you actually risk less! Never in any given year will I have to kick out more for all my health costs than my deductable and premiums. Can anyone with a traditional 80/20 health plan say that? Hardly. I have a max fixed cost for medical in any given year. It is more managable and cost effective for my business and I have far less risk of financial loss. Less worry, less cost, and less risk. Pardon the pun, but it is "just what the doctor ordered" for independent business owners. One of the very few things that the government actually did right! It beats anything that ObamaCare will ever be!

 

Very informative, and it makes sense now.. Thanks much!

 

Typically, a carrier will not cover a pre-ex condition within the last five years. After five years, if the condition is normal, there is no further therapy, etc, they WILL cover it. I just wrote a health policy for a 40 year old who had a heartattack at age 21. Wrote one last Monday for a lady who had a mastectomy 11 years ago. No rateups for either of them. No declines, no riders. Both got PREFERRED rates. One through Aetna, one through Humana.

If you go to a health carrier with a broken part, of course they are not going to cover it. Dialysis costs several thousand per month. Should they cover that and only charge you the normal rate, or even a 50% rate-up for that? How long would they stay in business if they did? It's like buying a new car, wrecking it the day after, THEN going to the insurance agent to buy insurance on it to cover that wreck.



That HSA is the best thing you can do. I recommend EVERYone get one if you can.