| Everyone knows that health insurance costs in | | | | be the same for the various health insurance plans. If |
| America are rising at unsustainable rates, and many | | | | you can live without some benefits of the cadillac |
| are looking for ways they can save. High deductible | | | | plans, HDHPs can protect you from the catastrophies |
| health plans (HDHP) are often overlooked when | | | | equally as well while keeping money in your wallet. |
| searching for health insurance. It's a shame this is the | | | | Another area to explore regarding HDHPs involves |
| case, because HDHPs can be a great way to save | | | | Health Savings Accounts (HSA). An HSA is a |
| money on monthly premiums and can provide similar | | | | monetary account through an insurance company, |
| protection as other cadillac plans. | | | | bank, credit union, or investment company where you |
| Let us first take a closer look at what a high deductible | | | | can place money into and watch it grow with interest. |
| health plan is and how we can define it. The basic | | | | In order to set up an HSA, you must have an HDHP, |
| concept of an HDHP is by having a high annual | | | | as the two go hand in hand with each other. The |
| deductible, one can purchase a plan with a low | | | | account must be qualified as a health savings account, |
| premium because of more exposure to health care | | | | and any contribution made to the account can be |
| costs. High deductible health plans must meet a | | | | written off as an expense for tax purposes. |
| minimum deductible dollar amount to qualify, and there | | | | Therefore, if you need to withdraw money from your |
| must be a maximum dollar amount which the | | | | health savings account for a medical expense, you |
| maximum out-of-pocket expense may not exceed. In | | | | can pay that expense with pretax dollars and write |
| Virginia, many health insurance companies have these | | | | the procedure off as an expense. |
| high deductible health plans set up so the maximum | | | | High deductible health insurance plans can be a |
| out-of-pocket is nearly the same as their most | | | | valuable alternative to a standard health policy. When |
| expensive plans. A lot of times, health plans with lower | | | | coupled with a health savings account, you can use |
| deductibles and countless benefits will have a | | | | pretax dollars to pay for medical expenses to relieve |
| coinsurance rate after the deductible is met, where | | | | some of your tax burden. HDHPs generally always |
| you pay that percentage of the health care cost until | | | | have lower premiums than health plans loaded with |
| you reach the maximum out-of-pocket. Many high | | | | benefits you may not need. By using an HDHP, you |
| deductible health plans in Virginia are without | | | | can be protected from catastrophic events and lower |
| coinsurance, which allows the out-of-pocket maximum | | | | the cost of your health insurance. |