The rising costs of health care and insurance are on the minds of many Americans. Will they be able to afford the policy they need as and when they get older? Health insurance is vitally important in today’s day and age. Without it one will be faced with astronomic medical bill or even be refused care.
To combat this problem the government signed into legislation the creation of the health savings account. A health savings account allows for money to be placed in an account to be used specifically for medical expenses. These expenses are for items that your standard health policy does not cover. The money cannot be used for any other purpose but dies provide several advantages for account holders.
One advantage that health savings accounts help to create is the increased buying of high deductible health plans. When one pays a higher deductible, the insurance rates go down. One can possibly afford a higher deductible with the help of the Health Savings account.
The health savings account also allows people to start saving for their future in terms of health. By creating this account you can have a better financial control over your possible future medical expenses.
HSA’s are also open to any type of employer. Previously, the medical savings accounts were only open to those places that employed less than 50 people. The health savings account are open to any employer regardless of size. With the vast majority of American relying on employers for their health insurance, this is a great leap forward.
The workings of a health savings account combined with a high deductible health plan are not difficult to understand. An example is, a person has the choice of 2 medicines, one costing 10 dollars and the other costing over 100. The cheaper brand, likely generic may have small 2 dollar copay, the more expensive brand may have 10 dollar copay. Your individual expenses would come out of your health savings account forcing the person to make the financially responsible choice of the cheaper brand. On other health plans, the person could opt for the more expensive medicine. However, this leaves 90 dollars that the insurance company has to cover. They do this by raising premiums for everyone.
Health savings account will make for better financial decisions when it comes to medicines and lower premiums for all.
Health savings accounts are a good way to plan and control your future medical expenses. Your major expenses will be covered by you policy while your other costs can be covered by your account. With careful planning Health savings accounts could result in cheaper insurance for all.