Do You Need Health Insurance?

The past year I have covered several topics in hour newsletter, but have never written about Health Insurance. We assist customers with both individual and group policies, from traditional PPO’s to High Deductible Health Plans (HDHP).  The latter are eligible for a Health Savings Account (HSA) which is an account where you can use pre-tax money to pay your out of pocket medical, dental and vision expenses.  For more information, I recommend www.hsabank.com.

While most people are familiar with the traditional plans, few know about the HDHP’s.  When analyzing your health insurance needs, the HDHP in many cases pay 100% after meeting your deductible.  In many cases, if you had a serious injury or ilness, your out-of-pocket will be less than on a traditional plan.  For example, consider the following:

You have a $25,000 medical expense:

Plan 1 (Traditional)Plan 2 (HDHP)
$3,000 Deductible$5,000 Deductible
Insurance pays 80% (With a $50000 cap)Insurance Pays 100%
$25,000 medical expense $25,000 medical expense
Subtract your deductible: $3,000Subtract your deductible: $5,000
Leaves a $22,000 balanceLeaves a $20,000 balance
Insurance pays $17,600 (80%) Insurance pays $20,000
You pay additional $4,400 (20%)You pay nothing more
Your total outlay: $7,400 (4,400+3,000)Your total outlay: $5,000

The HDHP does not cover Doctor visits other than preventative and RX until the dedutible is met.  Don’t try to figure out which is best.  Give us a call so we can assist.  We can assist as well with the selection of a plan at your employer as well.

For a quote with BCBS, Humana, Cigna, Aetna or United Health Care, give us a call today!