Finding Affordable Health Insurance For You & Your Family

Health insurance is a vital part of a financially sound life plan and can help protect a family or individual in some of the most unfortunate health-related circumstances. However, life insurance is not known in the United States to be affordable, or even realistic, policy to keep at times.

Health insurance coverages range in their uses. Plans run the gamut in their cost and usefulness. There are some very expensive, high coverage plans that give consumers choice on practitioners as well as low, or in a few cases, nonexistent co-pays on a routine or emergency care. There are also plans that require high deductibles and high copays and are meant to offer coverage in the event of a catastrophic emergency. While both types of coverage (and all the plans in between) serve a specific purpose, it is important to choose a plan for YOUR specific needs- as this will help you secure the most sensible coverage for you and your family.

For Example, if you have an ongoing medical concern with regular maintenance (think diabetes or something that requires expensive medications and frequent doctor visits to specialists) you would probably not opt for a high deductible catastrophic plan in most cases. These plans can almost guarantee to drive you up to your deductible on a yearly basis on top of your premium payments. A plan with great drug and specialist coverage will most likely be your best bet.

However, if you are young and healthy with no known health concerns, you may be able to grab a cheaper catastrophic coverage type policy with a high deductible. Although there are never guarantees (and we aren’t advising any which way), due to your good health you may assume you may not need to use your coverage regularly. Again your choice in plans is a personal decision that takes some research and planning to fit your needs.

One option that many people have seemed to like and catch on to in recent years is the HSA (Health Savings Account) high deductible plan. These plans do carry a high deductible and work more like a catastrophic coverage plan, however, they have a distinct, major benefit over other similar plans. HSA plans allow you to make tax free contributions to a Health Savings Account for usage on approved medical supplies and expenses. As of now, the money you contribute is not taxed as income and when it is contributed to the plan and used on approved medical expenses- and it is not taxed coming out either as long as it is spent on approved uses. Unlike an FSA, this money doesn't have to be used upon a yearly basis and can roll over again and again. Some plans even allow you to invest the money in order to grow it. There is no immediate requirement to use the money in the account, so if you don’t need it, you don’t need to use it. And better yet, when you reach 65, you can pull the money out for any reason without being penalized- although it will most likely be taxed at that point. This advantage has been enough to convert some people to switch the HSA plans as a means to provide additional retirement savings in later years. There are a number of specific rules and guidelines for eligibility, use, and tax implications, so discuss with your tax consultant in order to decide if this route is right for you and your family.

Regardless of the type of plan you choose, you will want to make sure you are receiving any tax credits or employer-sponsored benefits that you qualify for and make sense for your family. Be sure to compare coverages for the best combination of pricing and coverage and check on any rules or restrictions you may have in the process. Selecting coverage for you and your family is a big job that can have resulting side effects. Take the time to get informed and aware of your options for coverage and which ones make sense for you. You will be glad you did when the time comes to use it.