An HSA-compatible health plan

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In order to open a health savings account, you first need to be insured by an “HSA-compatible High Deductible Health Plan” or HDHP. The Federal Government has several important guidelines for these plans

• Minimum deductibles: $1100 for individuals; $2200 for couples/families
• No copays for office visits or prescription drugs until deductibles are met.
• Exception: health plan can have copays for prevention, since an ounce of prevention is worth a pound of cure.

Choose the highest deductible you feel comfortable with

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When you select a plan with a higher deductible, the premium will be lower. On the other hand, if you have a major medical bill, the higher the deductible means you will pay more. You want to find the balance.

Considering premium vs. risk, we urge people to choose the highest deductible they feel comfortable with. With today’s newer HSA-compatible plans, once you reach the deductible, the insurance company pays the rest. For example, if you are hospitalized and the bill is $100,000 hospitalization, you might pay a $3000 deductible, and the insurance will pay the $97,000 remaining costs. That’s good protection

Benefits that affect premiums

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There are two benefits that affect premiums; you get to choose which benefits are important to you.

• Maternity coverage
  
  If a plan has maternity coverage, the premiums will be higher, since maternity expenses can be substantial. If maternity is not a consideration, you will get a lower premium by choosing a plan without maternity coverage.


• Annual Exams:
• Some plans pay 100% of annual exam cost (higher premiums)
• Some plans offer copays for annual exam ($35), and you pay coinsurance (e.g. 30%) of lab costs (lower premiums)
• You pay costs of annual exam (lowest premium).