The numbers for 2007 health insurance figures are just out. It finds that the number of people without health insurance has gone up to 47 million people from just over 43 million people last year. Many people can not afford the increases in health insurance, and small businesses can no longer afford the luxury of offering health benefits to their employees.
There are options, and you can get plans with fewer benefits to protect against major losses in the event of a large medical expense. However these affordable plans cut benefits to the bare minimum, but should be very affordable.
HSA programs have recently lowered rates. These plans come with tax defered savings status similar to an IRA account. If you spend the money you put into the savings account on health related expenses, you don't have to pay taxes on it. If you don't spend the money, you get to keep it when you reach retirement and go onto medicare.
HSA programs generally come with a low premium high deductible (up to 10,000) catastrophic health insurance plan. It is ideal for someone who needs basic coverage for major expenses at the lowest possible monthly premium.
People between jobs who are looking for an alternative to COBRA until they can find other employment may be able to save money on short term health insurance program. Short term health insurance plans are basic major medical coverage at a fraction of the cost of full benefits health insurance plans.
There are options available for everyone to find an affordable solution. You have to know the right questions to ask and get with an honest agent who will shop around for the best deal. You can search plans and programs and prices at my websites http://www.thackeragency.com and also http://www.short-termhealthinsurance.com . You can get quotes and apply online if you find an affordable solution. If you need to speak with an agent, call us toll free.
Showing posts with label High Deductible Health Plans. Show all posts
Showing posts with label High Deductible Health Plans. Show all posts
Thursday, August 30, 2007
Thursday, April 5, 2007
The AP recently published this article about the differences in health insurance premium for men and women. It is not actually "discriminatory", but it is based on statistics for individuals within a certain sex and class. If the statistics show that a male in a certain age bracket spends less money than a female in that same age bracket, the females will pay more. Anyway the article gives insight into how premiums are set and where differences are. I thought it was good to link to. Enjoy.
Popular health-insurance plans punish women
Females charged more for having reproductive organs, Harvard study finds:
ATLANTA - High-deductible health insurance plans favored by many employers often wind up being an unfair burden to women, a new study says, largely because women need many routine medical exams that quickly add up.
The median expense for men under 45 in these plans was less than $500, but for women it was more than $1,200, according to a study by Harvard Medical School researchers.
They also found that only a third of insured men in that age group spent more than $1,050 in annual medical costs, while 55 percent of women did.
Popular health-insurance plans punish women
Females charged more for having reproductive organs, Harvard study finds:
ATLANTA - High-deductible health insurance plans favored by many employers often wind up being an unfair burden to women, a new study says, largely because women need many routine medical exams that quickly add up.
The median expense for men under 45 in these plans was less than $500, but for women it was more than $1,200, according to a study by Harvard Medical School researchers.
They also found that only a third of insured men in that age group spent more than $1,050 in annual medical costs, while 55 percent of women did.
Tuesday, March 27, 2007
Health Savings Accounts
Health Savings Accounts were created by an act of Congress to help consumers save money on insurance premiums and provide consumer driven health care to keep overall health care costs down. Under most health insurance plans, the consumer is shielded from the cost of the procedures that the doctor does. He or She will just pay a co payment or deductible and coinsurance and depend on the insurance company to pay the rest. This has resulted in abuses of the system in doctors performing tests that are questionable just to bill the insurance company.
If the consumer has a health savings account, the consumer will be responsible for the entire cost of the medical bill up to the deductible of the insurance plan. Congress hoped that this would cause the consumer to question tests that may not be necessary, and question the prices that their doctor might charge when another doctor might charge less for the same service. The reduction in benefits causes the cost of the insurance to drop thereby saving Americans who have Health Savings Accounts money from insurance premiums.
Congress also made contributions to your health savings account tax deductible like contributions to an IRA account. The idea was that people would put the money that they saved on insurance premiums into this health savings account. If they did not use the money on health related expenditures, the money is theirs to keep.
To simplify the process a bit, the HSA is really TWO separate accounts
If the consumer has a health savings account, the consumer will be responsible for the entire cost of the medical bill up to the deductible of the insurance plan. Congress hoped that this would cause the consumer to question tests that may not be necessary, and question the prices that their doctor might charge when another doctor might charge less for the same service. The reduction in benefits causes the cost of the insurance to drop thereby saving Americans who have Health Savings Accounts money from insurance premiums.
Congress also made contributions to your health savings account tax deductible like contributions to an IRA account. The idea was that people would put the money that they saved on insurance premiums into this health savings account. If they did not use the money on health related expenditures, the money is theirs to keep.
To simplify the process a bit, the HSA is really TWO separate accounts
- High Deductible Health Plan (HDHP)
- Health Savings Account (HSA)
Consumers can get a High Deductible Health Plan (HDHP) without opening a Health Savings Account (HSA). The HDHP is a high quality health insurance plan that does not pay any medical expenses until the deductible is met. The reduction in premiums helps to save money.
You can not open an HSA unless you already have a HDHP in place. You do not have to fund any money in the HSA account initially, but if you do pay for your medical bills out of pocket instead of through the HSA, you will pay medical bills with taxed money. The tax break will only occur through bills paid through the HSA account.
The IRS has set annual limits to tax deductible contributions to the HSA. As a result, many insurance agents will recommend getting a deductible that meets the maximum allowable deduction within the HSA. If you have a large family, the maximum tax deduction amount is 5,150/year. So a good plan would be a $5,150 deductible with a 100% insurance payment after that.
These maximums from the IRS change every year. If you have questions about the current rates, I recommend that you call your local agent, or go to find information at websites like this one at Health Savings Accounts. HDHP's have become more desirable recently because the insurance companies have recently reduced their premium rates on these plans. Consumers find savings of 30 -40 percent on their premium by moving from a traditional health insurance plan with copayments to a HDHP. It only takes a couple of minutes to find out if you can save this much on your health insurance premiums too at websites like this one at High Deductible Health Plan.
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