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| *Ostroff, Fair and Company>>>Insurance |
Does anyone have an insurance policy, with the HSA account? if so how do you feel about it...? |
Does anyone have an insurance policy, with the HSA account? if so how do you feel about it...? The HSA account allows you to save money on health care expenses by setting aside pre-tax dollars in a savings account to be used specifically for medical expenses not covered by your insurance policy, including deductibles, co-pays and co-insurance. HSA's are normally used in conjunction with a high-deductible health insurance policy. Instead of paying a higher premium for insurance with a lower deductible, you save monthly on the premium, but still have the cash set aside if the need arises, and it's pre-tax dollars that you've saved. HSA's are mostly attractive to those people paying 100% of their own health care costs. My personal opinion is that HSA-type insurance plans will become the predominant type of health insurance plan in the near future. I have had them in the past and found them very useful. I was able to use it to pay for my sons braces. He has tax free braces this way. I also have used it for perscriptions. WTF is a HSA account? You ask a great question, and here is my answer as the President of www.HSAInside.com I have spoken to literally thousands about HSA plans. First we as a public must understand the thought process of health insurance companies to really get excited about this concept. First Health Insurance Companies collect your premium and every year increase premiums and also post higher and higher profits, additionally they post higher and higher reserves. This means that the health insurance companies collect "your" money pay out less in claims than collected and still pay out "millions to executives" and also put aside money in reserves, Last year a major health insurance company posted 20Billion in Reserves. Dont' think that is alot of money, consider this Bill Gates networth is approx. 5Billion Dollars. So you are asking, how do they collect so much money? Well here is how it works, insurance companies make profit on fear that the consumer will pre-pay for services. A large majority of policy holders year in and year out never use their plans, will never hit the deductible (PPO plans) and with HMO's premiums are extremely high because you are prepaying in advance. With a HSA plan you are in charge of your healthcare dollars, it is a pure mathematical equation. What I recently saved a client a family of 5, ages 50, 48, 20,19,16 were paying $1200. a month in Premiums, and had never met their deductible (500 Annual Deductible). Meaning they were healthy and had used the plan only for annual physicals and common colds. The Insurance Company had collected over $14,000 a year in premiums from this family but never had paid out more than a couple of hundred in claims. They now have switched to a HSA account Eligible Plan (7000. Ded) with a premium of $261.00 a month, this saved them over $10,000 a year. Now this is where it gets exciting, they have opened a HSA account at a financial institute and are going to contribute over $5000. this year to their own account (Instead of letting the Insurance company build up their Reserves) This money will accumulate interest (Tax free) and if they do go to the Doctor they will pull out money from this account to pay for services which is also tax exempt!, now here is where it gets exciting Money Contributed helps reduce reported income (like a IRA). If you are not excited yet, it is because you are not alive- this is without a doubt the most exciting way to fund your Health Insurance in america. The only reason more people are not signed up yet, is because the big Health Insurance Agencies and Health Insurance Companies are not promoting these plans. They suck out the profit from commissions for agents, and also the big profits from health companies because these plans are regulated, unlike the ones that the carriers make up and promote to consumers. www.HSAInside.com |
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