You Can’t Afford A Plan With Copays!

 
Why do insurance companies offer plans with copays?  The same reason McDonald’s packages fries and soda with their sandwiches.  The reason is because the added features cost very little but they are able to charge significantly more for the perceived value.

Total Cost – Office visit

Let’s take a look at a typical office visit with both a copay plan and a plan with no copays

	Copay Plan	PPO Plan (no copay)	Difference
Cost of office visit	$25	$65	$40
Monthly Premium	$550	$325	$225
# of office visits to make up the difference			5.25 visits/month

Illustration assumes PPO plan with $25 office visit copay and a PPO plan with no copay but a discounted rate for the same office visit.

Result: The plan without copays will give you $225/month in premium savings.  This savings can be used to pay the difference for 5.25 office visits per month.  If your family does not have more than 5 office visits every month you are spending too much!

Our Quote Engine allows you to view both types of plan so you can do your own comparison.  If you have questions along the way contact us.

What is a Health Savings Account (HSA)?

A Health Savings Account (HSA) is a tax-qualified account combined with a low premium-high deductible insurance policy.  HSA’s provide a consumer driven approach to managing your healthcare.  HSA’s are designed to encourage the participant to take control of his/her healthcare decisions by building a reserve to fund first dollar medical expenses.

If you stay relatively healthy, (73% of Americans have less than $500 in out of pocket medical expenses each year) the account grows and can eventually be used for other purposes.  If you have significant medical expenses you have a reserve of dollars to assist in meeting your deductible.  Your out of pocket exposure on the high deductible plan is typically much less than that of traditional copay plans.

Following are some features of an HSA:

Reduce Health Insurance Premiums
By purchasing a high deductible plan you can cut your premiums by as much as 30-40 percent over an employer group or traditional copay plan.

Reduced Taxes
Contributions to an HSA can be deducted from federal and in some cases State income tax. Contributions are not subject to withholding, estimated taxes, or other employment taxes such as FICA.

Earn Tax Free Interest
All interest, dividends, and capital gains earned in a Health Savings Account are tax deferred.  When used for qualified medical expenses funds from a HSA are tax-free. Any unused funds in a HSA continue to grow in your account.  As your account grows, additional self-directed options such as CD’s and mutual funds are available.

Secondary Retirement Account
After age 65 the 10% penalty for non-medical withdraws goes away so the remaining funds can be used to supplement your retirement. Money left in the account after age 65 continues to accrue tax-deferred and can still be used tax free for eligible expenses.

You choose
Pre-tax HSA dollars can be used to pay for services not covered by traditional health plans. Some examples are laser eye surgery, dental, eyeglasses, chiropractic, acupuncture, kids’ braces, long term care premiums, and more. For a more extensive list of covered items see HSA eligible expenses.

Get quotes for individual/family health insurance in Arizona here. Contact us today at 602-510-7507 to find out how an HSA can benefit you.