Comments on: 7 Tips for Saving Money on Health Insurance

By: Arohan

Arohan — Tue, 03 Nov 2009 15:40:09 +0000

Jeremy, I love what you wrote. I had not considered this idea. Unfortunately your comment arrived a day late, we were past the annual enrollment deadline.

It is not just a little bit of money. If you are able to increase your deductible by say, $1000, and get the HSA to pay for this, you may save (assuming 30% marginal tax rate) $300 per year with just this maneuver, not to mention your health insurance premiums will go down as well.
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By: Jeremy

Jeremy — Tue, 03 Nov 2009 07:09:00 +0000

I also like the high deductible option for its tax benefits. Many high deductible health plans are Health Savings Account compatible (HSAs) meaning you can fund tax deferred money to a savings account to use on eligible medical expenses.

For those of you who need that broken down a bit lol.

Basically what an HSA will do for you (if you fund it for a few years) is leave you with the money right on hand pay a hospital bill if an unexpected accident occurs. If the out-of-pocket maximum on your current policy is $4000 and you’ve funded your HSA to $5000 and then turn around and break an arm which costs you $4324… 1) you pay $4000 total out of your HSA 2) The insurance company now kicks in with coverage of $324 since you have hit your out-of-pocket maximum for the year 3) You are covered at 100 % for the rest of that year because you have satisfied the out-of-pocket max. with the insurance company 4) You have saved a bit of money in the process from tax benefits because your HSA account is able to save money on a tax free basis!

If you would like more on HSA 101 please visit us!

Great post. Thank You!

Jeremy
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By: Journey

Journey — Mon, 13 Jul 2009 17:29:57 +0000

This is a great post for me. With my first job out college, I did not even pay attention to the details of my health insurance plan. I heard Blue Cross was good so I got Blue Cross. I ended up getting Bronchitis. I just felt awful. I called the local hospital that took Blue Cross to schedule an appointment and they said it would take 30 days for me to see a doctor. I felt like I was dying at the time so I just had to go the ER at the hospital. I ended up getting a 1300 medical bill for bronchitis. If I had read the details of my plan and not going on what I heard was good, I am sure I would not have this bill that still needed to be paid. I could have just gone to Kaiser. I guess you live and you learn.
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By: Miranda

Miranda — Sat, 11 Jul 2009 15:53:21 +0000

That’s very true, Lesley. You want to know ALL the costs, and not just the premiums.
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By: Lesley

Lesley — Thu, 09 Jul 2009 21:54:45 +0000

I would also make sure you know what your Out-of-Pocket Max is. That will be the most you spend in one year on medical bills, your Stop-Loss. Very important to know how much is coming out of your pocket in the worst case scenario.
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