Healthy Fellow Avoiding Avoidable Financial Surprises
May 07

Saving on Your Family’s Healthcare

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Family InsuranceBecause of rising health care costs, many employers are turning away from traditional insurance programs, such as PPOs. Instead, many are easing their employees into High Deductible Heath Care insurance plans, or HDHPs. At first glance, these health plans seem terrible. Co-pays have been eliminated, on doctors and prescriptions. If you have a medical expense, it comes out of your pocket until you reach the deductible, which is at least $1500.

Do not dismiss an HDHP without investigating it thoroughly! An HDHP has many benefits and can help save you money while still proving heath care for you and your family. HDHPs come with a tax savings account called a Health Savings Account or an HSA. An HSA allows you to put pre-tax money aside for medical expenses. The IRS allows this money to roll over from year to year. Many employers contribute some money to their employees HSA. Money in a Health Savings Account can be used for doctor’s visits, prescription medication, and even sunscreen! Having an HSA in conjunction with an HDHP can help you determine exactly how much money you will spend on healthcare for any given year. HDHPs usually cost much less than traditional health plans, which gives you leeway to set aside that extra money in your HSA.

Many families choose to set their entire deductible aside in an HSA. Then, once their deductible is met on their HDHP, all their medical expenses for the rest of the year are covered in full! No more surprises. HDHP plans may be unfamiliar and threatening at first, but for many people, they cover both peace of mind and financial savings.

Need help on health insurance? Check out this helpful health insurance forum.

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