The Real Reason to Buy Arizona Health Insurance Policies
The rising cost of healthcare is forcing people to take a look at their health care plans in a different way. Instead of looking for plans that cover every doctor appointment or prescription, many individuals purchasing their own insurance are opting for coverage that costs less and has higher co-pays or deductibles. These Arizona health insurance plans are often designed to protect against large medical bills by first, paying for preventative care, and then kicking in after the individual has paid so much money - usually thousands of dollars - first. In exchange for the difference in coverage, the individual is paying a much lower premium. In fact, the concept is now “maximum out of pocket” when it comes to the big “what if” of a serious illness.
Why purchase a high-deductible plan and use a health savings account?
By purchasing a high-deductible health plan with a health savings account (HSA), individuals will know up front exactly how much they would need to pay out of pocket in the event of a serious illness. Meanwhile, the plans encourage participation in HSAs as a way of deferring tax-free dollars to pay for pre-deductible expenses like prescriptions and doctors’ visits. A health savings account is meant for you to save so much money every year that is only meant to be spent on medical expenses. This is helpful with a high-deductible plan because it eliminates the tax on this money and helps you know that you can afford a trip to see the doctor for anything other than preventative care. And because the money in these accounts can be carried over from one year to the next, HSAs offer a tax savings and available cash to pay for future health care costs. You can invest in an HSA and know that you won’t lose the money if you don’t use it in the same year.
What are other incentives for a high-deductible plan?
Some of the individual AZ health insurance policies are offering other incentives to buy a high-deductible health plan. United Healthcare/Golden Rule has a high-deductible plan with an HSA attached, and offers a $1,000 reduction in the annual deductible for every year an insured person doesn’t exceed the annual deductible. This option is great if you’re very healthy and you don’t have any emergencies or scares. Although the purpose of insurance is to use it, no one wants to actually have a health problem that requires you to shell out money, and if you don’t you’ll be rewarded for having a high-deductible plan. For example, if you sign up for a plan with a $5,000 deductible and your health expenses don’t exceed this amount in a calendar year, your deductible will be reduced to $4,000 the following year. If the same thing happens in year two, it will be reduced to $3,000, ending at 50% of your plan’s annual deductible limit. So, if after a couple years something happens that does require you to use your insurance, you will stop paying for costs after $3,000 instead of after $6,000. Meanwhile, if the same member is contributing to an HSA regularly, they will eventually have enough in that account to cover the entire deductible, and possibly even the former deductible.
What qualifies as preventative care in this plan?
Another thing to remember about these individual AZ health insurance policies is that they are required to offer preventative care coverage. This means that an annual checkup with blood work is covered for all members, and an annual OB/Gyn visit with a mammogram is covered for female members, and most insurers cover these services without a co-payment. Other things such as going into the doctor for an illness are not covered. Arizona health insurance policies are all different, so you must talk to your insurance agent about exactly what is considered preventative. Some medications like birth control will be covered, however other medications likely won’t fall under this category. It’s important to understand the Arizona medical policy you have, or else you could assume that you won’t be paying for care and end up having to pay a large bill a few weeks later.
Remember that a high deductible plan isn’t right for all people. If you are prone to illness or have medications that are expensive and aren’t preventative, a low-cost high-deductible plan will likely be more costly for you in the long run. The best way to figure out how you’ll save the most money is to talk with your Arizona health insurance broker.