Health Care Antidote

Insurance may not be the answer for the health care woes. We all know health care costs and insurance premiums keep rising. The government says it's trying to help and the insurance companies swear they are as well. But there may be another remedy that no one is saying much about.

If you're worried about a catastrophe with your medical expenses, the solution could be a Health Savings Account. You'll need to couple your (HSA) with a high deductible health care insurance policy. That's right, a high deductible, as opposed to the low deductible rate we generally think of in terms of insurance.

Now, the policy your looking for will have a deductible cost of $2100.00 for families or $1050.00 for singles. This seems like a lot of money, but hang on - we're getting there. This deductible will greatly reduce your health care premium costs. Then you open your Health Savings Account. You maximize it by federal standards, depositing $5450.00 for a family or $2700.00 for singles. This is pre-tax money. The cost to set up your (HSA) is tax free. That tax-free status applies to the money you put in and the money you take out. Unused money can be rolled into future years.

There are many benefits to this health care cost antidote:

If you lose your job, you keep your Health Savings Account.

After retirement (at least 65 years of age) you use it like an IRA. You can remove money with no penalty and spend it any way you please. There is no penalty for using your money this way.

Your health care premiums are substantially reduced and you're putting aside money you may not have to ever use on health care, so it could be a sort of rebate to yourself. You won't get a rebate from your health care insurer should you remain relatively well to sixty-five.

You can use your health care money for care you need, even things not covered by your health insurance policy. You can cover yourself for dental, holistic, psychiatric, and many other costs.

Even if there is a catastrophe, you're covered way beyond the $5450.00 or $ 2700.00 because your insurance kicks in. Besides that, the federal government caps expenses out of your pocket at $10,500 for families and $5250.00 for singles.

You're less likely to encounter exceptions that insurers right into standard policies because of your high deductible.

More and more companies are offering Health Savings Accounts to their employees. Research shows this number to be doubling yearly. About fifty percent of these companies are paying into their employees' Health Savings Accounts.

So, here's an antidote that shouldn't be too hard to swallow. With a Health Savings Account, you manage your health care costs. No one can turn you down for any procedure because they think it costs too much money. You make the decisions because you're paying. Maybe it's an antidote we all can live with.