46 Years Experience
Consumer-driven health care plans generally work like this:
You must have an insurance plan that covers you for events with a first dollar deductible. This will require you to pay more of your smaller up-front medical costs yourself. The same as you now have for your Homeowners or Auto physical damage insurance policies. The program creates more patient involvement in Health Care.
In 2004 the Federal Government passed a new LAW that allows insured’s to participate
in a medical deductible health plan and then set aside from their income (like a 401(k) type investment account), TAX-FREE funds that can be deposited into a Health Savings Account – (HSA), up to a maximum of $2,600 a year for an individual or $5,150 for a family, depending on the insurance deductible you select.
The Deductible Health Insurance program is subject to a annual minimum $1,000 deductible to qualify for a Health Savings Account (HSA). Deductible Health Plans are available that provide smaller deductibles such as $400 or $750 may also be purchased. If smaller than a $1,000 deductible are accepted however, those health plans will not qualify the insured to establish an HSA account.
Regardless, deductible health plans in certain states are EXEMPT from most state “mandated” health coverage(s) and benefit requirements. Deductible health care plans may be 40% cheaper than the traditional first-dollar or co-pay health insurance plan you now have.
Also, some states laws allow companies with fewer than 50 workers to be exempt from certain State mandated benefits, such as chiropractic care. A Deductible Health Savings Plan in these states have been up to 25% less than the cost of traditional health care insurance plans.
In 2006, AN EFFORT will be made by the Republican Party to pass an Association Health Plan (AHP) bill. This same AHP bill was passed by Congress five separate times in the past five years, however, has failed to pass the U.S. Senate. The President wants this bill passed to the benefit of all small business owners.