Michigan Health Insurance and Health Savings Accounts
This is continuation of an article on Michigan Health Insurance and Health Savings accounts - To see the first part, click here!
5. To qualify for the HSA-qualified health insurance policy you have to be insurable.
Since many people do not have the qualifications for a high deductible insurance policy, they will need to meet certain requirements first. Unless coverage is being delivered from small group reform laws, the new high deductible policy will be checked individually by an insurance firm. Pre-existing conditions arise out of this process. Some companies may opt to cover a number of “pre-existing” conditions but charge slightly higher for the premiums. Health conditions such as diabetes, chron’s disease, heart attack, will not be included. Underwriting requirements vary from one state to another.
Don’t switch to a HSA plan when the management of existing medical expenses is more important than saving up-front medical insurance premiums.Only consider this if your health is strong and there are no upcoming medical concerns to deal with.
Most insurance companies offering HSA coverage make it a simple process based on your application answers and occasionally there a follow-up telephone interview. Based on your answers, medical records may be requested, and companies always reserve the right to order an exam.
6. HSA insurance premiums are low but not always as low as you might expect.
With insurance it is all about risk. Although it has a “high” deductible, the insurance company still must compensate for the risk it is assuming over the deductible amount. These insurance companies are offering plans for whole families. Therefore, it is not uncommon for premiums for a 5000 family deductible with 100% coverage after the deductible to be comparable to a 2500 “per person” deductible plan with 80/20 coverage after the deductible.
Lower premiums represent just one element of the lower net cost achieved with an HSA plan. The additional cost savings is achieved after factoring in the benefits of lower taxes because of the tax-deductible contribution to the HSA account. So if you are looking for the lowest possible gross premium, you may want to consider a high deductible, non-HSA policy.
7. With an HSA you can keep a cap on health insurance rate increases.
While you will have rate increases with your HSA insurance policy, you can expect the actual dollar amount of any future rate increases will be substantially lower compared to traditional health insurance plans (regular PPO and HMO plans). This is because insurers base increases on percentages, and the same percentage of a lower base premium results in a lower dollar increase. While not a perfect solution, it is the most cost efficient solution for many qualified people.
If you are looking for the best Michigan health insurance quotes, you can choose from any of the choices.
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