Planning for the future means ensuring that unforeseen medical needs are covered as much as possible. If you’re looking for ways to supplement medical insurance in Seattle, WA, selecting a high deductible health plan with a health savings account is a smart move. However, it can be tricky to figure out how to make the most of these plans, so consult an insurance specialist to maximize your investment.
What is a High Deductible Health Plan (HDHP)?
An HDHP is a type of medical insurance in Seattle, WA. It provides lower monthly insurance payments (premiums), but higher out-of-pocket costs when you receive medical care (deductibles). A key benefit of having an HDHP is that it fully covers preventive care. After you hit your deductible, your HDHP also begins covering other care expenses.
What is a Health Savings Account (HSA)?
Think of an HSA like a personal savings account dedicated for qualified healthcare expenses. You can only be eligible for an HSA if you’re already enrolled in an HDHP.
Every year, the Internal Revenue Service (IRS) redefines this type of medical insurance in Seattle, WA. This includes how much the plan holders should pay for their premiums and how much their out-of-pocket expenses should be. Since it changes often, you need an insurance specialist to ensure that you’re meeting the payment requirements.
An HSA is designed to cover medical expenses outside of HDHP coverage. Contributions, which are capped with an annual maximum amount, can be arranged by the individuals or by the individual’s employer.
Over time, these contributions are invested, and you can use them for approved medical expenses. They cover most types of care, such as vision, dental, and over-the-counter drugs.
Reduce Your Medical Costs by Using an HSA with HDHP
If you want higher coverage than what traditional Medicare plans in Seattle provide, it’s worth looking into enrolling in an HDHP with an HSA. Using an HSA with a high deductible medical insurance plan offers several advantages:
- The combination allows you to use money in your tax-free HSA to pay for out-of-pocket expenses and other approved medical costs beyond HDHP coverage.
- In case you don’t need a lot of medical care and health care items, an HDHP means you don’t have to spend a lot on your insurance in general. If you do need more care, however, you can still save by using your tax-free HSA to cover the costs.
- The lower premiums mean you don’t have to set aside a significant amount just for monthly insurance.
- Your unused HSA balance is added to your balance for the coming year. Therefore, you can grow your insurance to pay for medical expenses you may require in the future.
Find the Right Type of Insurance for You
While getting an HDHP with an HSA does offer significant benefits, not everyone is eligible for this type of health plan. Explore your options with the help of experienced insurance consultants. They can help you determine the ideal insurance for your needs and lifestyle, including medical, disability, dental, life, or Seattle, WA dental insurance.