Health Savings Accounts:

The hottest trend in health insurance

Health insurance premiums have risen at a double digit rate over the past 3 years… how can you stop the bleeding?

Health insurance plans typically renew on January 1^st, so the months leading up to that day are crucial if you are in the market for a new plan or a different carrier.  November is the perfect time to start thinking about your options if you are considering making a change to your current coverage.  Be aware that insurance companies are not going to come to you for a better deal; it's up to you to take action.   If you choose a knowledgeable insurance agent you trust, he/she should be able to offer you a competitive quote based on your description of your current coverage.  However, as healthcare costs and insurance premiums continue to rise, you may even be prepared to change the type of health insurance plan you purchase.

A new way to save on health insurance premiums involves enrolling in a High Deductible Health Plan (HDHP) and then augmenting the lower premium rate with contributions to a Health Savings Account (HSA).  A customer benefits from this plan by paying a lower premium and building personal equity through depositing funds into his/her HSA.  If a customer using this type of plan faces medical expenses not covered by the high-deductible plan, he/she can use HSA funds to cover them.  HSAs are generally tax-free if used for approved health expenses, but you also have the freedom to use the money you have saved in an HSA on anything if you choose to do so. 

There is much more to learn about HSA and HDHP insurance coverage.  If you have questions about your options and eligibility, contact us at our offices in Columbia and Chesterfield or through the contact page on this website.  Also, visit the Boone County National Bank website for more information about HSAs.