Category Archives: high deductible plans

Enrollment in health savings accounts up 87% since 2008

According to Forbes, more than 11 million Americans are now covered by an HSA plan.  That’s up 14% in one year and a mind-boggling 87% increase since 2008. Find the Forbes article here.

Health savings accounts were introduced as part of the Medicare Reform Act in 2004.  A health savings account combines a high deductible insurance plan (HDHP) with a tax-sheltered savings account that is similar to an IRA.

Deposits into the savings account are 100% tax deductible and can easily be accessed via check or debit card to pay for routine medical bills with tax-free dollars.  The high deductible plan provides valuable protection above the selected deductible amount.  Premiums are paid to an insurance company to provide the coverage under the insurance plan but those premiums typically are much lower than traditional plan premiums.

You can get quotes from major insurers that offer HSA-qualified high deductible plans through our site by clicking this link: Get HSA quotes.

For additional information, use the “contact” link and drop us an email or give us a call.

Our agency has been marketing these plans since day 1and we’ve been marketing medical savings accounts, the predecessor to health savings accounts, since 1999.

McDonald’s plays chicken-nuggets with the Goverment over mini-meds

Perhaps you have heard the story about McDonald’s threatening to cancel one of its limited benefit health plans.  As I understand it, this plan costs participating employees only about $500 a year in premium contributions (about $35 to $40 per month) but the kicker is that the plan maxes out its benefits at $2,000.  To the extent my understanding is accurate, employees are paying 25% of the maximum benefit in premiums – which is steep.  But, to be fair, those plans tend to pay benefits right away without having to go through large deductibles, etc.  There’s a reason the cost is so steep – they are highly utilized.

When the Government informed McDonald’s that this type of health plan was no longer valid, McDonald’s responded by threatening to cancel the coverage altogether.  In response, the Government (via Secretary Sebelius) blinked and allowed McDonald’s to have a waiver which effectively allows them to continue the sub-par coverage for at least a year.  To date over 100 other large companies – AND UNIONS – have filed for and been granted the same types of waivers for health plans that do not meet the definition of acceptable coverage under Obamacare.

Whether it’s a good idea for McDonald’s to offer such coverage is beyond the scope of this post.  Instead, my point is to highlight the bigger picture, which is, that everyone is having their “right-to-choose” taken away from them by the Government.  And you thought the Democrats were the “right-to-choose” party, right?  Guess again.  Nothing like Obamacare to make it clear – they think they know what is best for you and by golly you are going to like it.

Granted, healthcare costs are getting higher and higher.  Affordable premiums are a thing of the past.  Nevertheless, the Government is forcing people into Cadillac health plans – they are forcing people to pay higher and higher premiums, and they are doing it on purpose.

Once Obamacare kicks into full force in 2014, you will no longer have the right to purchase limited benefit plans of any kind.  This includes the “mini-med” plans like McDonald’s offers but it also includes full coverage plans that happen to have high deductibles – like really high (higher than HSA-qualified levels).  For example, you will not be able to buy a $25,000 deductible plan that pays 100% after the deductible – because the  Government says the deductible is too high.  Never mind the premiums – the deductible is too high.  Common sense would dictate that the limited number of folks opting for those types of plans would be in a better position to know whether they can afford the higher deductible.  The Government thinks their sense should take precedence.

Want your freedom of choice returned?  Urge your representative and senators to repeal Obamacare.  When your Democratic representatives and Senators balk – throw the “right-to-choose” back in their face by asking:  “I thought you supported the right to choose.”

States report “whopping” rate increases on health plans (thanks Obamacare?)

They’re beginning to figure it out.  Health insurance premiums are not going down, they’re going up . . . A LOT.

As this article from the Seattle Times relays, Washington residents will see premiums rise around 20-22% between Oct. 1 and Jan. 1.

And that’s just the beginning.

This time, they are not blaming Obamacare.

Oh.  Really?

Well, perhaps next time when rates shoot up another 20-25% they’ll finally make the connection.

Could it be that Obamacare alone will be responsible for increases of 40-50% within a year of its passage?  Yep, entirely possible.

The solution?  Repeal Obamacare?

Maybe.  Maybe not.  I’m beginning to wonder whether that movement has any real traction.

In the meantime, high deductible health plans still  make the most sense.  In fact, they make more sense than ever.

Use this link to get quotes for high deductible plans and start saving today!

CDR