| One of the most underutilized tools in the | | | | mathematics? |
| insurance world for self employed premium | | | | The obvious answer is more of a question, which |
| victims is the modern Health Savings Account or | | | | is what happens if somebody needs major |
| HSA. | | | | surgery (or these days, even simple outpatient |
| I find in my work that most of the issues can be | | | | surgery) before the HSA savings account has had |
| tied to either having a lazy health insurance agent | | | | enough time to build up to enough to cover |
| who is not well studied, or a customer who | | | | deductibles and medications? Therefore, |
| makes too many assumptions on what is and | | | | self-employed families should be especially careful |
| what is not included in the benefits. My hope is to | | | | with their cash flow ability when choosing the |
| clarify the process in which a consumer or agent | | | | maximum deductible in the first place, |
| should utilize to put together a smart and prudent | | | | Having said that, another approach to policy |
| HSA for themselves, and reap the tax | | | | design is to add enough ancillary and separate |
| advantaged benefits in the process. | | | | accident and critical care coverage to off-set a |
| HSA plans are designed to have a higher than | | | | major shock, such as cancer, loss of limbs, any |
| normal deductible, and as a beneficial result, a | | | | accident, and the most expensive surprises. This |
| much lower monthly premium to be paid. The | | | | enables a person or family to keep the premiums |
| deductibles are either for a single person (which | | | | somewhat at bay, but covers the very real |
| can run up to $5,000) and family (up to $10,000) | | | | possibility of needing $10,000 or $20,000 cash |
| but when the deductibles are covered, the | | | | immediately to pay for an emergency room, or |
| procedure expenses are paid 100%. The money | | | | other catastrophe. There is no better policy |
| which a person SAVES on monthly premium is | | | | combination that I know of than a federally |
| supposed to be invested in to the Health Savings | | | | mandated (standards) HSA Major Medical Plan |
| Account, which can take the form of a separate | | | | combined with the correct ancillary items, when |
| bank account at most major banks, or an | | | | taken in to proportion of monthly premium benefit |
| investment fund approved for HSA deposits | | | | and overall safety from unexpected events. |
| typically paying more interest benefit. A debit card | | | | The key to all of this for the self employed health |
| is issued for the account chosen, and all | | | | insurance buyer is to work with a health agent |
| prescriptions, medical procedures, dental, vision, | | | | who cares enough to dig in to the details of what |
| and any other health related bill is paid from the | | | | ancillary policies would be best, covering |
| account. As long as the account is used properly | | | | everything from accidents and the top illnesses, |
| for medical expenses, the money invested into | | | | to which discount program to use for dental and |
| the account is tax advantaged: Up to $2850 for | | | | vision. If you do not have guarantees in all of |
| singles, $5650 for families, and is arguably the | | | | these areas, coming up with large amounts of |
| thrilling part of having one. | | | | cash or credit for a surgery or other event could |
| So what can possibly go wrong with the | | | | be horrible. |