One way to manage your health care expenses is by enrolling in a High Deductible Health Plan (HDHP) in combination with opening a Health Savings Account (HSA).
How High Deductible Health Plans and Health Savings Accounts can reduce your costs:
- If you enroll in an HDHP, you may pay a lower monthly premium but have a higher deductible (meaning you pay for more of your health care items and services before the insurance plan pays).
- If you combine your HDHP with an HSA, you can pay that deductible, plus other qualified medical expenses, using money you set aside in your tax-free HSA.
- So if you have an HDHP and don’t need many health care items and services, you may benefit from a lower monthly premium. If you need more care, you’ll saving by using the tax-free money in your HSA to pay for it.
- Your HSA balance rolls over year to year, so you can build up reserves to pay for health care items and services you need later.
To learn more about what is considered a High Deductible Health Plan, click here.
As always, please contact your Total Benefit Solutions Inc health insurance specialists with any questions or concerns at (215)355-2121.