Comparing Deductibles in Traditional Co-pay and Health Savings Account (HSA) Eligible Plans
In todays health insurance environment it is often difficult to weed through what the terms actually mean, especially when they really have differnt meaning from plan to plan. Afterall, the true meaning is really defined by what is covered and is not coverred.
To start, you must first understand one term and how that effects you as the insured, DEDUCTIBLE. You may know the definition of this term already, but did not realize that the definition actually changes depending on the type of plan chosen to insure you and your family. Specifically by plan I mean a traditional PPO co-pay style plan compared to a Health Savings Account (HSA) eligably plan. Therefore, we must truly understand what this term means with each plan. All carriers plan look different, but I will compare the difference of the term deductible under two seperate plans both by the same carrier in Ohio:
- Deductible under a traditional PPO co-pay style plan - Often thought of as the the most important term when descriping any health care plan, but also the most misunderstood. The deductible really is one of the least important because it is not a true indicator of your out of pocket expenses beyond the premium. Unless you have a 0% coinsurance (the percentage you will pay for after your deductible has been met), which would mean that you have an Out of Pocket Maximum equal to your deductible. In addition, none of the office vistit co-pays or the prescription co-pays would applytoward your deductible and would all be payed out above and beyond the out-of-pocket maximum.
- Deductible under a Health Savings Account (HSA) eligible plan - Gradually becoming the most popular health insurance products in the individual and group health insurance market. The reason they are becoming so popular is not only because the premiums are typically 30-40% less, but also because if you truly understand how they work you will realize that virtually every siutaiton an HSA plan will save you a considerable amount of money all things considered. The reason for this is that all expenses, including office visits and prescriptions, apply to the deductible and typically the plans are set up so that all expenses after the deductible are covered in full. Also, under most Health Savings Account plans your preventative and wellness visits are covered at 100% prior to the deductible. If these things were not enough, the goverment will also allow you to put aside money to pay for healthcare related expenses pre-tax.
As you can now see; things are not always as they seem. There are many more details that can be discussed in relation to this area of health insurance, but the most important item you need to realize is that you need to be a true consumer and understand what health insurance plan you have and why you have that specific health insurance plan. In many situations it is very beneficial for a familyto opt off of an employers group plan and get their own individual plan. This will provide the insured with the flexibility to choose the correct plan for their specific needs.
To learn more about health insurance and to get information in regards to health insurance rates, I would recommend looking at specific plans and rates that can be pulled up online. www.HealthInsuranceChaser.com is a fantastic site that outlines multiple carriers and plans in every state. You can also call them at 1-877-775-4321 if you have specific questions about your current health insurance plan or alternatives to your current health insurance plan.
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