More Consumers See Value in Catastrophic Health Insurance in Texas
Posted on January 18, 2012 by Charles F Peeler Jr
A sluggish economy and health insurance premiums that continue to rise have prompted many people to consider the value in choosing catastrophic health insurance in Texas. With these types of plans, premiums are lower in exchange for a higher deductible, but with a Health Savings Account (HSA) qualified plan, tax advantages are common. The bottom line? Catastrophic health insurance in Texas makes sense as annual premium savings provide better value than the potential out-of-pocket expenses associated with more traditional plans.
What is Catastrophic Health Insurance?
Catastrophic health insurance in Texas is designed to handle any large medical expenses that could financially devastate an individual or family. It’s a perfect solution for those looking to save money on premiums but still retain medical coverage in an emergency. There are basically three types of catastrophic plans available- hospital only, high deductible all inclusive and high deductible with office visits. Texans are choosing high deductible all inclusive catastrophic health insurance plans with a Health Savings Account (HSA) option to get the most value out of their health care dollars.
How it Works
With most high deductible plans, you pay for all of your health care costs, up to the annual deductible amount- all except for preventive care that is included with every plan. Once you meet the deductible, some plans pay 100% of medical costs and some pay 80% leaving a 20% coinsurance. However, once you reach the out of pocket maximum, your insurance pays for it all and some even have what’s called a family deductible. While your premiums don’t count towards your deductible or out-of-pocket maximums, all catastrophic health insurance inTexasmust cover 100% of all preventive care- even before the deductible is met, that’s one of the good provisions of the new health care law.
HSA High Deductible Plans: The Best Value
Some catastrophic health insurance in Texas allows you to set up a health savings account that gives you the flexibility to use pre-tax money for medical related expenses. As a proven way to save money on medical coverage and taxes, the HSA is quickly becoming popular with Texans who are looking to get more value from their health insurance dollars.
Alternative plans may have lower deductibles, but with the typical doctor copays, you can end up spending more. Besides, monthly premiums are higher, allot higher. By switching to the one deductible plan, you are still guaranteed the negotiated rate between the doctor and the insurance company for approved charges. Besides, in a healthy year, where you don’t visit the doctor often, you’ll be glad you’re spending less money every month on your premium. Remember, preventive care is covered, even before you meet your deductible.
The tax benefits alone provide value that most people don’t want to miss. All money in the HSA account grows tax free and can be used for anything and everything medical related. Plus, you can contribute up to $3,050 yearly as an individual and $6,150 per family and that money rolls over the following year so you can watch it grow. Also to note, you are NOT required to “open” or “set-up” an HSA account to enjoy the lower premiums of these plans, it’s just an added benefit in the event you have extra cash stashed away somewhere.
The benefits of the HSA plan are prompting financially savvy people looking to save money to consider catastrophic health insurance in Texas. For the best value, the most affordable premiums and coverage that you can depend on, catastrophic health insurance in Texas just makes sense.
For more information on Catastrophic Health Insurance in Texas visit our Texas Health Insurance website. There you are free to obtain instant, no obligation quotes from most of the top companies offering medical plans in our state.
Posted in Uncategorized | 0 Comment