How do I pick a health care plan?
If you have the ability to pick a Health Care Savings Account (or HSA), you should take it. HSAs are not for people with chronic conditions, but for normally healthy people in your situation, you should take that. An HSA is an insurance policy (with a high deductible) and a cash account. The cash comes from a combination of your employer’s contributions and your contributions. The cash goes in tax free, accumulates in an investment whose returns are tax free and comes out tax free so long as you use it on health care costs. So its like getting free investment buildup. When you turn 65 you can still use the cash accumulation to pay health care costs tax free and if you want the money for anything else….you just pay your post retirement tax bracket rate. Once you get an HSA….all the routine costs, monthly birth control, and occasional trips to the doctor from your cash account until you hit your annual deductible…then the insurance plan kicks in.
Choosing a Health Plan Step by Step For many finding health insurance plan may seem like a tall order. The first step is outlining your needs across three major categories: cost, coverage and quality. Determine the Cost Don’t just settle for the most affordable plan based on price alone. The trick is to find the most cost-efficient plan for your specific needs. • Gauge your general health helps you find the best balance between premium and deductible. For instance, if you are young and healthy with few medical needs, you may consider a policy with a higher deductible and lower monthly payments. • If you have specific health-care needs – such as preventative programs or specialized care – look for plans that financially accommodate those needs. • As you evaluate different plans with different deductibles, consider how much cash you typically have on hand. Make sure this amount is enough to cover the deductible – plus potential out-of-pocket expenses – in the event of an emergency. Under
For many finding health insurance plan may seem like a tall order. The first step is outlining your needs across three major categories: cost, coverage and quality. Determine the Cost Don’t just settle for the most affordable plan based on price alone. The trick is to find the most cost-efficient plan for your specific needs…
