Florida high deductible health insurance plans aren’t the right choice for all of the state’s residents, but this type of coverage does have some distinct advantages for certain subscribers. People who want to pay the lowest possible amount in premiums may look to a high deductible health insurance plan in FL for their needs. Review the facts about this type of plan to determine if it makes sense in your situation.
Why You Need Health Insurance In Florida
Health insurance is a product that you buy to protect your hard-earned assets. If you become ill or are involved in an accident that requires hospital care (with or without surgery) and you don’t have coverage, you will be faced with paying for your care yourself. Very few people have the means to do so.
A person who doesn’t have insurance coverage in place to cover their health care costs may be faced with having to sell their property to raise money to pay for their care. If you have been injured or become ill, you need to focus on getting well instead of how you are going to pay for your care. When you consider that for a monthly premium payment, you can get health care coverage of $1 million or more in lifetime coverage, you will see that having health insurance in place is a good investment.
About FL High Deductible Health Insurance
A high deductible health insurance plan is one with a minimum deductible of $1,100 for an individual policyholder and $2,200 for a policy that covers the whole family. Compare this to other plans that may have lower deductible of around $500. The deductible applies to all the services covered under the policy, including prescription drugs. It does not apply to preventive care.
When you choose a high deductible health insurance plan, the monthly premium costs are reduced significantly. The insurer considers the fact that you are willing to take on a larger portion of the responsibility for your medical expenses yourself into consideration when setting coverage rates. A higher deductible means that the likelihood that you will make a claim for benefits against your policy is lower. Lower risk means lower rates from your insurance company.
Who is this plan right for? Mainly, those who have to funds to cover the deductible in an emergency, and who want to benefit from lower monthly payments. Do you have immediately accessible funds set aside in the amount of the higher deductible? The deductible is the amount that you agree to pay for your medical expenses out of your own pocket before the insurance company will pay out any benefits. The monthly savings on your premium are attractive, but not if meeting the deductible will cause financial hardship.
FL High Deductible Health Insurance And Health Savings Account
Florida residents have the option of combining their high deductible health insurance plan with a Health Savings Account (HSA). Deposits made to the HSA are tax-deductible, and can accumulate interest on a tax-free basis until they are withdrawn to pay for eligible health care expenses. As long as the funds are withdrawn for this purpose, they are not subject to income taxes. The funds in an HSA can be used to finance the account holder’s retirement under certain circumstances.
An individual can open an HSA with a high-deductible health insurance plan if they are not covered under another health insurance policy and they are not enrolled in Medicare. A Health Saving Account can be combined with accident, cancer, dental, hospital protection, or vision care insurance. The funds in the HSA are used to pay for eligible expenses until the amount of the annual deductible is met. After that point, the health insurance policy pays benefits as outlined in the policy.
Annual contribution limits for an HSA are set by the government. For 2009, the limit for this type of policy is set at $3,000 for an individual policyholder and $5,950 for a family. The limit for 2010 is $3,050 for an individual and $6,150 for family coverage. HSA account holder 55 years of age or older can contribute an additional $1,000 to their HSA each year.
Find The Best FL Health Insurance Plan Today!
To find out whether a HSA with a high deductible health insurance plan is the right choice for you, talk to an independent insurance agent for help. He or she can explain your options and how much money you can save on premiums by choosing this option.
You can investigate your options for Florida high deductible health insurance right now by clicking on the free health insurance quote tool at the top of this page. Whether you are considering this coverage option on its own or combining it with an HSA, you want to find out about your FL health insurance options. It’s absolutely free to use, so you can get started right away.