Advantages and Disadvantages of HSAs and High Deductible Major Medical

Health Savings Accounts - Advantages and Disadvantages
HSA (Health Savings Accounts) can be combined with high deductible health insurance to provide a lot of benefits for some individuals and families. They do not work for everybody though. Do you need to compare individual health insurance? Learn how this type of health plan works to see if it can benefit you.

There are, again, 2 parts to these plans.

One is a higher deductible major medical insurance policy. The second part is the savings account.

The idea here is that the health insurance policy will cover the big bills. If the account gets funded, it provides the money to cover many bills that would not be included in a major medical policy, or it can pay bills until the deductible is reached.

There are some key advantages to having an H.S.A., but these will not benefit everybody. First look at some of the benefits. Then it will be easier to decide if you should be an H.S.A., PPO, or HMO!

The contributions the savings account will not be taxed if they are within current IRS limits. Since pre-taxed income can fund the account, this reduces tax bills. This makes that money go further.

Cash in the account will roll over if it doesn't get spent. Hopefully, this gives a family or individual the opportunity to set aside enough money to help them with medical expenses. Some accounts even earn interest just like regular savings accounts.

In addition, the account may be used to pay for some health care costs that would not even be covered by major medical insurance. Consider some of these health expenses that may not be covered under a major medical plan. They could include vision and dental care, natural supplements, etc. Make sure you consult current tax rules and specific plans to see how the money can be spent.

Because the actual H.S.A. major medical comes with a larger yearly deductible, so the rates should be lower. Some insurers relax underwriting rules a bit for higher deducible insurance so there is also a chance that more people would be accepted. For those who are accepted, but may have some minor health conditions, there may be a better chance they will only have to pay standard rates.

By now, you may have figured out that some people can realize a big benefit from this type of plan. If you need an additional tax deduction, this is a great way to get it while saving for future health expenses. An H.S.A. also allows you to control your costs by paying less for major medical while saving for future expenses in a way that gives you tax advantages.

A health savings account can combine with a higher deductible major medical plan to benefit a disciplined saver who can benefit from tax deductions. The cash account will keep growing, so it can continue to grow from year to year. At retirement age, the money can be withdrawn with no penalty.

As mentioned before, these plans do not work out that well for everybody. The actual cash account can only help if there is actually cash there. If a plan member never makes deposits, there will not be any cash in the account when bills need to get paid, and there will not be any tax deductions!


------------------------

Visit us to compare health insurance policies with our articles and free quotes.

Compare Health Insurance Providers

Also see: http://www.submityourarticle.com/a.php?a=127887

Medicare Coverage of Dental and Vision

How Does Medicare Cover Dental and Vision?

A lot of Medicare beneficiaries want to know how their Medicare benefits cover dental and vision services. These medical services, while not provide by an MD, can cost a lot of money. They are serious concerns to Americans on US Medicare.

Take a few minutes to understand dental and vision benefits - does Medicare cover dental and vision? This outlines the basics of what would be covered, and also gives resources for people to find out more. or

Basically, routine services like dental or vision checkups are not covered. Services that relate to a medical issue could be covered. Some Medicare recipients may have a Medicare Advantage plan or retirement benefits that could cover more.

Dental Discounts for Seniors

Seniors may benefit from a dental discount plan to help lower costs. These plans have networks of providers in a area. These providers agree to discount fees in order to belong to these networks. They are NOT insurance, and some are better than others. I would suggest considering those that actually are run by insurance companies. Even though they are not insurance, they can help by giving access to a large provider network!

Learn More: Dental Discount Benefits

Costs of Health Care Procedures

How Much Will a Health Producedure Cost?

Even if you have health insurance, you may have a fairly high yearly deductible. If you do not have health insurance, and need health care, you will be writing a check for sure. One thing you may be afraid to ask your doctor or health care provider is, how much will it cost?

One health insurance company publishes the cost of common health procedures inside their member's website. They know that many members have chosen a higher deductible health insurance plan to save on monthly premiums, and may be concerned if the doctor prescribes a medication, lab test, or other procedure.

Here is a sample of some prodedures. Keep in mind, this data was published assuming the member would use in-network PPO services. This means that the prices are negotiated. The thing is - as we've stated before - people without health insurance PAY MORE than patients with health insurance! So even if an invididual saves by buying a very high deductible health plan, and the procedure does not meet that deductible, money will still be saved! Quote Various Health Insurance Plans Here!

Here we go! Keep in mind that these are averages, and your costs may differ!

Ultrasound: In Network $231 Out of Network (uninsured) $362
Emergency Room: In Network: $1,262 Out of Network: $1,822
Colonoscopy/Sigmoidoscopy: In Network: $1,307 Out of Network: $2,440
Heart Failure Requiring a Hospital Stay and Follow Up Visits: $12,160 *
* Note that only in network costs are available. We can assume that the costs will be considerably higher if an individual is Out Of Network Or Uninsured!


If you cannot write a check for one of these procedures, you may consider finding affordable health insurance!

Smoker Supported Health Plan

I picked this up on the InsureBlog. Apparently smokers will subsidize (via taxes) a state supported health insurance plan for lower income residents of Indiana.

It seems like a step in the right direction. Money will be available for preventative car and medical treatments. The income levels of about 20k for individuals and 40k for families are fairly low, considering those with pre-existing conditions are usually at the most risk for being uninsured. A great program would take that into consideration, but it's a step.... a step.....

Affordable Health Insurance - The Quest!

You may not think you can afford health insurance for yourself or your family. However, many companies offer a variety of options and coverage which can keep your health insurance premium low enough to squeeze in your budget. Now I didn't say it would be cheap or anything, but somewhere below jaw dropping!

You can look for a PPO (Preferred Provider Organization) or an HSA (Health Savings Account) with a variety of coverage option and deductibles. Some plans even include maternity options (Depending Upon Your State), accident insurance, and prescription coverage.

Visit This Page for Free Online Health Insurance Quotes.

Middle Class Lacks Health Insurance

According to the National Association of Realtors, 28 percent of their members lack health insurance. Generally realtors are independant contractors, and would have to apply for individual health insuance policies. On realtor who was interviewed made about $60,000 dollars a year - a good middle class income. She had cancer and could not qualify for any individual health insurance plans on the commercial markets. I am certain that almost every state has some sort of high risk plan, but of course, these plans are very expensive and they can have pre-existing condition clauses.

However, I also believe that many of the realtors have just not gotten around to applying for health insurance. I understand that it can be the kind of thing best put off until tomorrow. However, it is, of course, better to obtain coverage BEFORE you are diagnosed with a disease or have an injury.

A qualified, local health insurance agent can point you in the right direction, even if it means directing you to a government risk program.

If you would like a quick online health insurance quote, information, or the ability to find a local agent, click here

Health Care Spending To Double in 10 Years

Health Care Spending is expected to double in 10 years according to an article in Yahoo news. Article Link.
This will be right about the time that the bulk of the baby boomer generation is full into medicare. Since I was born right at the very tail end of that generation, I won't have made it yet. Actually by the time I slide into medicare age another decade later, medicare may have some of the pain eased because the older baby boomers will have passed on. I expect that we will have a big problem in about 10 years, and it will probably last for about 10 years.

Most of the health care spending issue will be on prescription drugs. More agressive treaments, and more medicinces will be available at the pharmacy. The good news is, many more diseases will be controlled by pills, and more people can survivie and live comfortable lives. This is Good! The bad news is that it's going to cost.

If you're concerned about rising health care costs, and you are one of the 47 million Americans without health insurance, it really is time to consider a plan to protect you from a castastrophe. The health care cost situation is not expected to improve! A high deductible, catastrophic plan may not take that big of a bite out of your budget, and it will give you peace of mind and could prevent a tragedy that doesn't have to be!

I've posted before about ways to keep health insurance affordable, and you can search through this blog to find the articles. My point is, if you've been quoted a health insurance plan before that's just more than you can afford, please consider looking again, armed with some knowldedge!

GET A QUICK ONLINE HEALTH INSURANCE QUOTE OR FIND A LOCAL AGENT BY CLICKING DA' LINK!

Hillary Clinton & Health Insurance Blog For Health

Senator Clinton Weighs In On Health Insurance and Breast Cancer

FROM THE YAHOO BLOG....

Until we have a cure, our best defense against breast cancer is early detection. With access to proper screening exams, we can diagnose breast cancer at its earliest stages, when it's easiest to treat. Unfortunately, too many women in our country are uninsured and underinsured, and don't have access to important preventive care. As part of our efforts against breast cancer, I support efforts to expand access to quality health insurance, through programs like those that allow uninsured individuals to buy into existing health insurance programs, or those that make it easier for small businesses to offer a comprehensive health benefit to their employees.


CLICK TO CLINTON (THE MRS) BLOG ENTRY


Click Here for Free Health Insurance Quotes Online

John Edwards and Health Care Reform. Health Insurance for All Again!

John Edwards, another democratic candidate, is calling for health care reform! Yeah, let the games begin. Maybe this time the rhetoric will actually turn into action. He wants to get rid of Bush's tax cuts for people who make over $200,000. Since I don't make over $200,000, I have no problem with this. :)

John Edwards wants to raise some taxes and cut loopholes for the wealthy to help pay for health care and health insurance reform article on Yahoo.

I do have a problem with the fact that 47 million Americans are uninsured. If you don't have a problem with this fact, then you should check out Bush's plan. Even he says that Americans who receive health insurance through work, because of tax breaks that companies get to provide it, don't have any idea of how much it costs. I have to agree. If everybody understood how much health insurance really costs then people would be taking to the streets!

Right now, only self employed people, contractors, etc. who provide their own health insurance - or the 47 million uninsured seem to grasp the price. Maybe others do, and they don't start their own businesses and are held hostages to corporate America because of ... ta da....health insurance.

It's time to address the issue.

Bush Plan May signal the end of Employer Based Health Insurance!

Wow, the Chicago Tribute thinks the new Bush Plan may signal the end of employer based health insurance. Well, you know I disagree with Bush the second on so many things, but for once, I see his point - and I'm sure it's an unpopular one. How come you have to do this to me just when I'm all set to start shouting HILLARY!

LINK TO CHICAGO TRIBUTE ARTICLE

Points to Ponder that are bound to be unpopular, but I sort of get them....

First, he'd eliminate the tax breaks for health insurance and treat it like any other form of compensation. That would make consumers more sensitive to costs, his advisers said.

Second, the president would create a tax deduction for health insurance, similar to the existing deduction for having a child. Families would get a deduction of $15,000 beginning in 2009; individuals would could deduct $7,500. Annual increases would be tied to inflation.

Consumers would get the full value of the deduction, no matter how much they actually spent. Spending in excess of the deduction's amount would be taxed as ordinary compensation.

Comments? Hate it? Love it? Do you at least GET that we need to make employees aware of what a benefit they are getting in health insurance? I do.

Insurance and Credit Score

Why does the insurance company need my credit report?



Insurance companies need to price right. If they price too low, then they will lose money. If they price to high, their competitors will sell more insurance. One factor that is taking on more importance in how an insurance company views you as a risk is your credit score.

Note: If you want legal ways to help build your credit score, visit Bad Credit Blues News.



Actuarial studies show that how a person manages his or her financial affairs, which is what an insurance score indicates, is a good predictor of insurance claims. Insurance scores are used to help insurers differentiate between lower and higher insurance risks and thus charge a premium equal to the risk they are assuming. Statistically, people who have a poor insurance score are more likely to file a claim.

Insurance scores do not include data on race or income because insurers do not collect this information from applicants for insurance.

Health Insurance - Am I dreaming - Bush wants us to have it!

I must be dreaming, or maybe the President reads my blogs!

Bush addressed the huge problem of uninsured Americans and wants to change the tax code so that people are more aware of the cost insurance, and so that people can get liberal tax deductions for getting their families covered.

USA TODAY ARTICLE ON BUSH'S PLAN

Forty Seven Million Americans do not have health insurance! That is one out of 6 of us, and to me - living in an advanced society - this is unacceptable.

More HSA Health Savings Account Basics For Health Insurance

WHAT IS AN HSA or Health Savings Account?

I have divided this post up into three blogs. The first one is a basic outline so you understand the two parts of an HSA. The second part outlines some advantages to using a Health Savings Account Plan for your medical insurance. The last part tells you where to get more information!

Part 1: Is an HSA Health Insurance?

If you are shopping for health insurance, you have probably noticed a major medical insurance product called an HSA or Health Savings Account. An HSA is not actually insurance, but is an account that would be obtained with an HSA compatible Major Medical Insurance Plan. So we are talking about two parts of an HSA program here. One part is the Major Medical Health Insurance for your larger expenses, and the other is an investment, retirement, or savings account you can use on health purchases.

Part 2: Why would I want an HSA Account?

HSA plans make sense for many people. You can contribute, according to IRS guidelines to your HSA account. You will be able to deduct the allowable amount from your taxes. You can use this money to spend on any qualified purchases - some that might not even be covered by your major medical. However if you remain healthy, and do not need to take the money out - you keep it!

I have had clients who spent a considerable some on a lower deductible health insurance plan and then felt cheated because they had not used their plan very much. Well, I think that they were lucky to stay healthy! However, I can see their point. So I would be happy to give them the option to spend less on a much higher deductible health plan. That would also give them the security of knowing they will have health insurance in case of any major illness or injury! They can also choose to make contributions to their HSA, have a tax break, and know that if they don't have to spend the money, it will keep rolling over.

Part 3: Learn More About HSA's From Uncle Sam

I always like to go right to the Horse's...er Mouth ... when people ask me questions about taxes and/or the law. To learn more about HSA's you should go right to the Government.

Here is a link to the Dept. of the Treasury publication.