Maryland Health Insurance and Health Savings Accounts

This is the continuation of an article, Maryland Health Insurance – What About an HSA? To see the first part – click here.

5. Be insurable in order to become eligible for HSA-qualified health insurance policy

Most people do not have a properly qualified high deductible insurance policy, hence they will need to switch insurance plans to qualify. Unless coverage is being offered under small group reform laws, the new high deductible policy will be individually underwritten by an insurance company.  WIth that, some “pre-existing” conditions may not be fully covered.  Some companies may opt to cover certain “pre-existing” conditions but charge slightly higher premiums. Some health conditions such as: diabetes, chron’s disease, heart attack - will simply not be able to qualify. Underwriting requirements vary by state.

Only consider switching if your health is strong and there are no upcoming medical concerns to deal with. Don’t switch to a HSA plan when the management of existing medical expenses is more important than saving up-front Maryland medical insurance premiums..

Most MD medical insurance companies offering HSA coverage make it a simple process based on your application answers and occasionally there a follow-up telephone interview. Based on your answers, medical records may be requested, and companies always reserve the right to order an exam.

6. Although HSA insurance premiums are low these are not as low as you might expect.

With insurance it is all about risk.  Although it has a “high” deductible, the insurance company still must compensate for the risk it is assuming over the deductible amount. These insurance companies are offering plans for whole families.  Therefore, it is not uncommon for premiums for a 5000 family deductible with 100% coverage after the deductible to be comparable to a 2500 “per person” deductible plan with 80/20 coverage after the deductible.

Are you aware that lower premiums represent just one element of the lower net cost achieved with an HSA plan? The additional cost savings is achieved after factoring in the benefits of lower taxes because of the tax-deductible contribution to the HSA account. So if you are looking for the lowest possible gross premium, you may want to consider a high deductible, non-HSA policy.

7. You can limit your health insurance MD rate increases through an HSA

Although it’s unavoidable to have rate increases with your HSA insurance policy, you can expect the actual dollar amount of any future rate increases will be substantially lower compared to traditional Maryland health insurance plans (regular PPO and HMO plans).  This is because insurers base increases on percentages, and the same percentage of a lower base premium results in a lower dollar increase. While not a perfect solution, it is the most cost efficient solution for many qualified people.

If you want to get MD medical insurance policies, you might want to consider this as one of your choices.

Get Your Free Maryland Medical Insurance Quote Today! - Click here.