Mona J Horton
Published on August 7, 2014
Making the right decision for your Health Insurance starts with understanding how it works! First, it is important to know the following: • Working with a broker does not cost you anything and they represent more than one carrier, so they can find the best plan for you – no matter which company. • Prices are fixed by law - whether you go directly to a carrier or work with an agent, the price is the same. • An Agent is your advocate - they understand the marketplace and help you to choose the right plan, whatever your situation might be. - We are here to serve you, not sell you! - How do we serve you? By helping us to understand your particular needs, we can help you navigate the numerous plans that are available to you and find the products that best balance meeting your budget and mitigating your risk. What risk? How much you have to pay, above your premium, when treated for an accident or illness. • The biggest risk – Having No Insurance. • First part of risk – Your deductible is the portion that you pay first, before insurance begins paying a portion of the costs • Second part of your risk – Your co-insurance is the amount of liability for which you are responsible (eg. 20%, 30%, 50%) up to your maximum out-of-pocket. Once you understand risk, it makes it easier to decide on how to mitigate that risk based on how you use your insurance. For example: • If you need help with prescriptions and see your doctor regularly (multiple times a year) to monitor ongoing conditions, then looking at traditional co-pay plans is probably the right way to go. • If, however, you are just having an annual checkup and want to make sure you’re covered if something bad happens, then you need to understand how HDHP/HSA plans work. What is an HDHP/HSA plan? • QHDHP refers to a Qualified High-Deductible Health Plan, a plan with premiums which are generally lower because the insured assumes a slightly higher portion of initial liability • An HSA is a tax-favored savings account set up for you and your family. • Tax-free deposits can be made to the account. • You can use the funds to pay for current and future health care expenses or accumulate them to supplement retirement income. • An HSA must be coupled with a qualified high-deductible health plan *Review the Top 20 Reasons to open an HSA in 201 3-14 . We recommend visiting our website www.hbusinc.com and reading more about Health Savings Accounts and, if you like, open an account right online.