Many Americans are finding themselves without employer-offered insurance benefits. Every day individuals must reconsider their health insurance options simply because they've changed jobs, lost a job, joined the ranks of the self-employed or have gone back to school. Adding more confusion to the mix is health care reform, which has made health insurance even more convoluted.
If you're generally healthy, one budget-conscious option to consider is a high deductible health plan, or HDHP. With a high deductible health insurance plan, you must pay out-of-pocket for health care costs until you reach your deductible. Once you reach the deductible, the HDHP will cover your additional costs, which is great in case of a catastrophic incident, or anything else that can be very expensive. If you're a healthy individual who rarely visits a doctor and doesn't need regular prescriptions, then your costs are very low, as you only pay the small price each month to keep your plan in place.
individuals with HDHPs can also contribute to a health savings account, which is a savings account that allows you to add and withdraw money for qualified medical expenses without being taxed. An HSA acts like an investment -- you can grow your capital while ensuring you have money to pay for future medical expenses.
A question often asked about HDHPs is: "What's the point of paying to keep a health plan in place when I could just save money on my own to pay for future health expenses?"
Health insurance companies regularly offer cheaper rates to clients when they choose services rendered by their approved network of providers. So having health coverage can lead to negotiated rates on health care services. You can typically save between 30 and 60 percent on health costs and also have the peace of mind to know that it will cover you for catastrophic events, usually up to three to five million dollars, or up to the lifetime limit.
If you are one of the many consumers who rarely requires doctor visits and prescriptions, then an HDHP may be right for you, as it will save you money while still covering you in case of a major medical need.
If you're generally healthy, one budget-conscious option to consider is a high deductible health plan, or HDHP. With a high deductible health insurance plan, you must pay out-of-pocket for health care costs until you reach your deductible. Once you reach the deductible, the HDHP will cover your additional costs, which is great in case of a catastrophic incident, or anything else that can be very expensive. If you're a healthy individual who rarely visits a doctor and doesn't need regular prescriptions, then your costs are very low, as you only pay the small price each month to keep your plan in place.
individuals with HDHPs can also contribute to a health savings account, which is a savings account that allows you to add and withdraw money for qualified medical expenses without being taxed. An HSA acts like an investment -- you can grow your capital while ensuring you have money to pay for future medical expenses.
A question often asked about HDHPs is: "What's the point of paying to keep a health plan in place when I could just save money on my own to pay for future health expenses?"
Health insurance companies regularly offer cheaper rates to clients when they choose services rendered by their approved network of providers. So having health coverage can lead to negotiated rates on health care services. You can typically save between 30 and 60 percent on health costs and also have the peace of mind to know that it will cover you for catastrophic events, usually up to three to five million dollars, or up to the lifetime limit.
If you are one of the many consumers who rarely requires doctor visits and prescriptions, then an HDHP may be right for you, as it will save you money while still covering you in case of a major medical need.
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