Tuesday, June 9. 2009
HSA compatible health insurance plans are on the rise once again.
Read about it here
Now that HSA's (Health Savings Accounts) are no longer new and many now understand them. Here is the simple math to help you along the way. It's as easy as 1-2-3.
1) First calculate your total exposure (maximum out of pocket) and premium on your current plan.
Example: You now have a $1,500 deductible with 80/20 to the first $5,000 ($1,000 additional out of pocket)
with a $20 DR's office co-pay and a 15/30/50 RX co-pay.
On this plan your maximum exposure would be $2,500 PLUS all your co-pays you pay throughout the year.
The premium for your current plan is $214.00 per month or $2,568 per year.
2) Determine the HSA compatible health plans maximum exposure and premium.
Example: The HSA plan has a $3,000 deductible with 100% coverage thereafter and the premium is $134.00 per month or $1,608 per year.
3) Take the difference in both premiums:$2,568 minus $1,608 which is a $960.00 savings per year. You can now take the $960.00 you saved per year and place it in a tax free account (HSA) and use it to pay down your deductible, leaving you a net maximum exposure of $2,040 or $460 less than your current plan. And if you do not use the money in the HSA it rolls over to next year. Continue paying a higher premium, have no claims, and you will not get a refund.
HSA's really are just simple math. Find out how much you can save by getting a HSA health insurance quote now.
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