Health Insurance Made Easy

There are some things in life that we take for granted and health insurance is usually one of them. We rarely think about health insurance as long as we are employed and covered by the company group policy. Things change dramatically when we leave our employer. This is becoming more and more of a problem especially for those in the baby boomer generation. There are large numbers of boomers leaving their employment and starting new businesses. These new entrepreneurs need health insurance for the first time in their life. Individual and small group plans are often medically underwritten and many of these 50 something’s have pre-existing conditions that are eliminated or excluded from their new health policy. 

The federal government has gotten involved in the health insurance crisis. They have created something called the HSA or Health Savings Account. This savings account is the medical equivalent of an IRA. The account is specifically designated for medical expenses. It is a tax deductible savings plan. The HSA is an excellent way to lower health insurance premiums by self-insuring. The best way to lower health insurance is to buy health insurance with higher deductibles. The trend has already started and there are more high deductible health policies than ever before. Deductibles of 500, 1000, 1500, and 2500 and up to $5000 are becoming more and more common. The higher deductibles lower the premiums substantially but create additional out of pocket expense for the insured.  The Health Savings Account is designed to help save for this out of pocket expense. The tax deduction helps reduce your taxable income and this makes the whole concept of having an HSA worthwhile. 

This is valuable information when shopping for medical insurance online. Look for companies that sell high deductible plans. Compare the rates with other companies using the same deductibles. Compare those rates with low deductibles. You will soon be able to see the reasoning behind the self-insurance concept when purchasing health insurance. The lower deductibles no longer justify the high premiums. The health insurance climate has changed and so the way you purchase health insurance must change. Health insurance is much easier when you take advantage of the industry trend toward higher deductibles and use Uncle Sam’s tax advantages. Major medical health insurance also has coinsurance and stop gap provisions that your medical savings account can help fund. The policyholder’s coinsurance responsibility is usually 20% with a limit of out of pocket around $2000.