High Deductible Insurance

Insurance is a less expensive way to protect your health than many of the other available options, though they do have a higher annual deductible than more traditional health plans. Although high deductable health insurance is not the most popular option, those that choose this type of health insurance program enjoy the comfort of knowing that all their future covered health care expenses will be paid by with their healthcare plan. Use our Medical Quotes form to the left to get started.

How Do These Type of Plans Work?

Insurance plans give policyholders the responsibility of covering any minor or routine health care expenses until the deductible is met in a calendar year. Once the deductible is met, the costs covered in the plan are paid by the insurance provider.

A high deductible plan is a new health plan that provides insurance coverage as well as a tax-advantage, which helps save for medical expenses when used in combination with a Health Savings Account (HSA). The HDHP/HSA combination gives you greater flexibility on how to spend health care dollars.

What is an HSA?

A Health Savings Account or HSA is also a new savings account that allows you to set aside money for health care, and it is tax-free, but the deductibles may be high with a HSA policy. A HSA rolls over from year to year and an interest is paid. Also it allows you to invest money into mutual funds. This type of policy is owned by you and is not owned by your employer and will be in control of how your healthcare dollars are spent or saved.

Since health care costs today are so high, an HSA offers many benefits such as: it is an affordable health insurance plan, which will cost less for high-deductible health insurance each month. It also has a triple Tax advantage, which provides "pre-tax contributions to your HSA, tax-exempt interest and investment gains on your HSA, and tax-free withdrawals from your HSA for qualified medical expenses." And, as it is a portable policy, it stays in place regardless of where you work or who is your insurance company.

Another major benefit is that it offers flexibility. HSA contributions can be used to pay for a wide range of eligible medical expenses not typically covered by low deductible health insurance or other healthcare accounts.

Who Should Obtain This Type of Policy?

The deductible on high deductible health insurance is higher than other insurance plans, but the premium is lower. Therefore, this type of plan appeals to:

• those who are prepared to pay for routine health care expenses in exchange for lower premiums
• those who are early retirees and need a way to Medicare
• those seeking protection from unexpected accidents or illnesses at a lower cost

Also, those whose medical expenses are limited to preventive care should consider an HDHP, especially if they are able to contribute to the HSA, which will result in an increase of funds for future medical expenses.

HSA insurance has many benefits to those seeking quality health care.

Featured Providers