| Using a consumer driven health plan can be an | | | | premium. |
| affordable and effective solution in driving down | | | | The great thing about some of these plan is that |
| the high cost of health insurance coverage. There | | | | they still allow you to have one annual physical per |
| are two parts, and many benefits to a consumer | | | | year. Also, some plans cover 100% of your |
| driven health plan. Here's how they work: | | | | medical expenses after you've met the deductible. |
| The Health Savings Account (HSA) | | | | That's more than most traditional plans can claim. |
| The first component of a consumer driven plan | | | | On top of that, high deductible health plans often |
| solution is the health savings account, or HSA. | | | | have high lifetime maximum benefit, adding extra |
| Essentially it's a checking account, with a debit | | | | protection for major medical expenses. In some |
| card. It is a tax advantaged financial account, that | | | | ways, high deductible health plans are better than |
| allows you to deposit money pre-tax, to pay for | | | | traditional health plans. |
| future medical, dental, and vision expenses, tax | | | | The Big Benefits |
| free. In my opinion, it's not the main benefit, but | | | | 1. Because the cost of QHDHP's is so much lower |
| it's a pretty big one. | | | | than plans most Americans are used to, they |
| The Qualified High Deductible Health Plan (QHDHP) | | | | offer an excellent financial solution to rising health |
| The second part of a consumer driven plan is the | | | | insurance costs. You can literally save thousands |
| qualified high deductible health plan, or QHDHP. This | | | | of dollars per year in health insurance premiums |
| is a major medical, or catastrophic health pan, | | | | by switching to a QHDHP. |
| with a high deductible. It replaces your current | | | | 2. Having a health savings account at your |
| health plan, if you have one, and only covers the | | | | disposal, in case you do have medical expenses, |
| "big stuff." The medical deductibles on these plans | | | | can prove to be an invaluable tool, since it allows |
| range from $1,500 to $3,000 per individual, and | | | | you to pay for medical expenses (and more) with |
| $3,000 to $10,000 per family. The higher | | | | pre-tax money. If you're in a medium or high tax |
| deductible you choose, the lower your monthly | | | | bracket, this can prove to be a huge benefit. |