HEALTH SAVINGS ACCOUNTS (HSA)

HSAs have been around since 2004, and were initially called Medical Savings Accounts (MSA) that were available in 1997, for the self-employed.

HSAs are a government regulated savings account that is mean to pay to qualified medical expenses, such as:

• Plan Deductible
• Prescription Drugs
• Dental services
• Vision services
• Eye wear and contact lenses along with solution
• Advil

and so on...

The best thing about the HSA account is that the money contributed into the account is either tax-free or can be an above-the-line tax deduction depending on your employment status.  This is the only available account where you can use tax-free money to pay for your medical expenses.  Also HSA plans are the lowest in premium and provide the most protection.

Now as for the actual health insurance plan, by far the best available plan in todays market.  With an HSA plan or also called a High Deductible Health Plan (HDHP), you are only required to meet a deductible with 100% coverage following.  All your medical expenses, including prescription drugs would be applied towards the deductible.  The plan deductible will be your total out-of-pocket exposure in a calendar year.

With the HDHP, there will not be any form of pre-paid benefits such as office visit copayments or an Rx card.  Other than your annual physical for males or annual OBGYN visit for females, which are covered at 100% by the insurance carrier, you would be responsible to pay the bill towards your deductible.

Now for non-HSA plans that include an office visit copayment and Rx card, there are negatives:

1. An office visit copayment only covers the cost of the initial doctor visit, NOT lab work, diagnostic tests or X-rays.  These are all deductible expenses.  A typical physician visit for accident or illness is usually around $70 for someone with insurance, which would be applied towards your deductible on a HSA plan, wheras a copay would not apply to the plans deductible or out-of-pocket.
2. Plans with prescription drugs cards usually provide an immediate benefit for generic drugs, but will require you to pay into a separate $500 or $1,000 Rx deductible before a copay begins on Brand or Preferred Brand name drugs.  Once you finally start paying a copay, it will not be applied to the plans deductible or out-of-pocket.
3. After you meet the plans deductible which usually begins at $1,000, you would then begin to pay a percentage (mostly 20% ) towards an additional out-of-pocket limit.  Majority of plans require that an additional $2,000-$3,000 be spent in addition to the deductible

As for Emergency Room benefits, all plans other than BCBSIL will require you to pay a copay and the whole bill at the ER. 


Please stop by the shoppe to learn more on HSAs