Health Insurance Daily

HSA vs. Traditional Health Insurance

The reality of an HSA product is that it is not that much different from a traditional health care plan.

There are key differences that need to be understood:

HSA Plan

1. Lower Premium
2. NO Doctor's Office Co-Pay available
3. Tax Free Savings Account opportunity
4. Higher Deductible (no lower than $1000)
5. Rx Costs are applied to the deductible

Traditional Plan

1. More "First Dollar" benefits
2. Office visit co-pay
3. NO Savings
4. Deductible varies
5. Drug coverage varies

An HSA is a non-traditional, yet cost effective way of viewing health insurance. It can save your client money by maintaining lower premiums and deductibles and limiting up front costs such as co-pays. Thus, resulting in lower costs from the insurance company.

The most important part of an HSA is that the client knows they have total control of their own money and have a tax free opportunity to store up those premium savings.

Overall, these comparisons show that a HSA is a wonderful product for the long term outlook on health insurance. It is a product that moves and grows with the client and provides more freedom of choice of products and services.

Information provided by Business Distribution Solutions.

posted by Mike @ 9:00 AM