Rush Limbaugh made the statement, “You can’t insure your health.” We can’t insure that we will never get sick or hurt or never have a catastrophic event. But we can insure the medical expenses.
So the purpose of health insurance then is to reduce the costs of medical bills. The idea is that you are still responsible for some medical bills but the larger costs are paid by the insurance company. The larger the deductible (as we take more of the responsibility) the more the insurance company discounts the premium.
I believe in the concept of consumer-directed medical insurance coverage. I laid this out in an earlier blog. A medical insurance policy where patients are involved and more informed and taking on greater responsibility for their health care decision-making. A medical insurance policy that allows patients and doctors to make health care decisions and allows patients to decide how they want to spend their health care dollars.
This simple solution can save many families hundreds of dollars each year in health insurance premiums. I am talking about the “Tax free Health Savings Accounts.” The HSA plans combine a higher deductible and a lower premium with a qualified health savings account.
According to cato-at-liberty.org,. Eight million people are covered by plans with low-cost premiums and high deductibles that are designed for large, unexpected medical costs. Nearly a third of new HSA users, according to treasury figures, previously had no insurance or bought coverage on their own.
Money is also set-aside in a savings account to cover the deductibles, and even non-covered eligible medical expenses. Whatever you don’t spend from your savings account can build up tax-free.
We “can’t insure our health” but HSA’s allow you to decide how and where your health care dollars get spent. The HSA money is your money. You decide when to spend it and when to save it. .
You can even use the money to pay for qualified health care expenses that may not be covered on your health insurance plan.
HSA’s are portable. The HSA stays with you and goes wherever you go.
Remember. With an HSA you self ensure the amount of your family deductible. With a 100% co-insurance option, the plan will pay 100% of covered medical expenses once the deductible is met.
For a list of HSA covered expenses click here