<p>megmno, I work in insurance so I can try to help you out…</p>
<p>Generally speaking, if you take an HSA compatible plan, you are generally taking a higher deductible then a traditional plan, and you are pretty much “self insuring” your medical costs until you reach that deductible. If you put money in your HSA, it’s got tax advantages and you can use it towards your medical expenses while in that deductible. </p>
<p>When comparing plans (traditional vs hsa) I usually ask my customers the following things:</p>
<p>How often do you visit a doctor outside of preventative things each year? (Physicals, GYN, Mammogram, etc) Part of the new health care reform is that plans will have no deductibles, co pays, or maximums on preventative services… so those type of things should be included under your plan up front prior to the deductible, regardless of which plan you decide on. The question then comes down to, other doctors visits. How often do you see yourself going? Once or twice a year? If your visits are 100 bucks each, and you pay that towards a higher deductible HSA plan, it wont be too much different from paying say a 30 dollar co pay for each one. However, if you run to the doctor every month, that can definitely add up and you may be better with a traditional style plan. I would suggest making a chart to try to come up with some estimates on what you “think” you will use the plan for. Allow wiggle room for unexpected or expected changes.</p>
<p>What’s the difference in the cost of the plan each month? For example, if your HSA compatible plan is going to cost you 500 bucks a month less, and your doctors visits are counting towards the deductible, as long as your expected costs are less then 500 bucks, you are coming out ahead from a premium standpoint… and that’s not even counting what you put in the HSA. I hope that makes sense. It’s late haha!</p>
<p>What’s the difference in the total out of pocket maximum for a year under the plans? Most traditional plans tend to be like 70/30 or 80/20 or 90/10 style plans, with a cap on your coinsurance once it reaches a certain point. High deductible HSA plans will have a cap as well… but it’s definitely something to compare. I’m just speaking generally here, this is obviously subject to change based on the plan. </p>
<p>How do the plans cover prescriptions? This is different from plan to plan sometimes.</p>
<p>Also, I hate to bring this up, but you mentioned the beginnings of Parkinsons, I don’t deal with small business policies so I don’t know entirely how they work but will you have to answer medical questions to be accepted into a new plan? Might cause an issue if so. Might want to look into what options you have with the same company as far as possibly downgrading coverage - you may not have to answer medical questions if you do it that way. Again, I don’t know how your company does it in the first place but it’s something to ask about.</p>
<p>I can make an example for you… My work insurance… Up till this year I had a regular plan with a 600 deductible, 90/10 style plan until my 10 percent reaches 2500 - meaning 3100 out of pocket max for a year. I have co pays on my doctors visits prior to meeting my deductible.</p>
<p>I actually just changed my insurance for this up coming year, to an HSA compatible plan. As a young person who doesn’t go to the dr very much, I think it will work out better for me. I now will have a 1200 deductible instead of 600 dollars, after the deductible my plan is still 90/10, till my 10 reaches 2500… meaning the out of pocket max under this plan is 3700. The plan still covers preventative visits prior to the deductible, but everything else will go towards it… including sick visits to the doctor. </p>
<p>So basically worst case scenario, my out of pocket costs are 600 dollars more under my new plan then my old plan, however I am saving approximately 400 dollars a year on the premium of my new plan, and my company will contribute $400 per year into the HSA on my behalf… So really, worst case scenario, I’m actually coming out ahead with my new plan… cause with them chipping in 400 bucks, my total out of pocket really in a year would be 3300 and i saved 400 on my premium. Nice part is, I don’t really have vision coverage, just a discount, so I can use some of that $400 towards an eye exam and new glasses come 2011. </p>
<p>Another example… some of the plans we sell at work… We have a traditional styled plan with a 1500 deductible, and a 3,000 maxium out of pocket… that will have a premium of x amount of dollars. it has copays on doctors and rx. We also have a high deductible HSA plan with a 3,000 deductible, so basically you are paying all costs up tillt hen, but with that plan if you reach 3,000 you have 100 percent coveage, so the out of pocket is 3,000 as well. This plan always seems to run about 100-200 bucks less each month. If you take the HSA plan and take that 100-200 that you are saving each month on premiums in an HSA, you have the money to use if something were to come up for you. If nothing comes up, your money that you put in there will roll over to the next year for you.</p>
<p>I hope that makes sense… it’s late. I’ll proof read it in the morning. If you need any help comparing plans or anything you are welcome to PM me about it. I honestly think a lot of people over insure compared to what they really “need”. If that makes sense. It’s all a giant math problem really.</p>