Pennsylvania Health Savings Accounts (HSAs) have been growing in popularity. And why not?Affordable Pennsylvania health insurance plans are becoming harder to find each year. And an HSA can provide quality health care and tax advantages at an attractive price. Typically, HSAs will save you approximately 25%-45% in premiums, when compared to more popular copay plans.Of course, there are differences in coverage.
What is a Pennsylvania “Health Savings Account” (HSA)?
A Health Savings Account is an alternative to your traditional health insurance. It is a savings policy that offers a different way for consumers to pay for their health care expenses. Pennsylvania HSAs permit you to pay for current health expenses and also save for future medical expenses on a tax-free basis. Qualified medical, dental and vision expenses are all eligible. Typically, you are issued a debit card to assist in the record keeping process. You can view statements online or receive a monthly statement in the mail.
You must have a “High Deductible Health Plan” (HDHP) to take advantage of an HSA. An HDHP costs less than a typical health insurance policy. Ideally, the money you save on insurance can then be deposited into your Pennsylvania Health Savings Account. As you manage the money in your HSA, you decide the type of investments you make into the account. At the end of the year, you do not lose any of your funds that were not used. You are not under an obligation to set up the account or make any deposits into the account.
What is a “High Deductible Plan” (HDHP)?
An HDHP is an inexpensive plan, sometimes referred to as a “catastrophic” plan. Normally, this type of coverage does not cover the first several thousand dollars of health care expenses (often known as “the deductible”). However, after the deductible, coverage is often 80%-100%…depending on the policy. All Pennsylvania HSAs have “first dollar” coverage for preventative benefits and higher out-of-pocket expenses for non-network expenses. And a negotiated-network discount will reduce your expenses that are subject to the deductible. Normally, deductibles of $3,000-$6,000 are the most popular. However, there are a few carriers that offer deductible options as high as $8,000 or $11,000.
What is the cost of a Pennsylvania HSA?
Technically, an HSA is not a policy you buy. It is a savings account that allows you to deposit money on a tax-deferred basis. When you have a Pennsylvania HSA, the only policy you purchase is the HDHP, which is an inexpensive plan that covers your medical expenses if they exceed the funds you have in your HSA.
Monthly premiums on the HDHP will vary, depending on the insurer. In some areas, a Health Savings Account from Aetna may be the best option. Yet, in other areas, UnitedHealthCare, or another company such as HealthAmerica may be the better choice. Highmark in Western Pennsylvania and Independence Blue Cross in Southeastern Pennsylvania offer very competitive rates.
What is the best way to get a Pennsylvania Health Savings Account?
You can obtain free quotes (the quote section is near the top of the page) or if you would like to talk to a live person, simply call us at (888) 513 6446. We’ll review what HSA plans are best for you and email you the specifics in writing.