#1 benefit to why HSA compatible plans are the plan to choose

Whether you are looking for health insurance coverage or are currently insured, the below link will take you to an illustration that will show how much one is to pay for a $10,000 hospital bill from 5 plans provided by BCBSIL.

HSA Plan Exposure Comparison

All 6 plans presented cover an annual physical and annual OB/GYN visit (mammogram and pap smear) under a $20 or $30 copay, even the HSA plan.

The first 5 plans will provide the same copay for additional office visits as well.  The HSA plan will not provide a copay and require you to pay the discounted amount of the visit towards the plan deductible.

Now onto the illustration....


The highlighted plan, being HSA compatible, is the lowest cost of the plans presented.  Not only is it the lowest in premium, but it also provides the least risk to the insured for a hospital expense as illustrated.

Now, if I compare the cost of the HSA plan to the first plan presented with the lowest deductible, the annual savings in premium is $793.  Since the HSA plan does not have copays, that amount in savings is more than enough to cover the cost of additional visits other than preventative.  Make sense?

Why should I pay an insurance company more premium for a plan that will cost me more at time of a large claim?????


As for the actual Health Savings Account (HSA)...This is a no-brainer.  HSAs can be opened at a local bank branch for free or for a $2-$3 monthly fee.  With the account, the IRS allows for an individual to deposit up to $3,050 for 2010.  The total amount deposited into the account, is taken as a above-the-line tax deduction, reducing your taxable income by up to $3,050.

Remember the account is optional.  In the presented illustration, the insured can pay for these expenses on a credit card or another payment other than the HSA.  Anytime before 4/15 of the following year, the insured can make deposits into the HSA for the amount spent, and then immediately withdraw as reimbursement.  This way, funds hit the ledger in order to take a deduction.

So...to sum it up, the one with the HSA plan will be able to take a 100% tax deduction on the total amount spent for the hospital bill, where as anyone on the other 5 plans would only be able to deduct if the expenses were greater than 7.5% of their total adjusted gross income.

Make Sense?

Please call the shoppe to learn more on HSAs.

Thanks!

-The Shoppe