Many small business owners are struggling to obtain health insurance coverage that is affordable and yet provides adequate coverage. One option that is now available more than ever is the Health Savings Account, or HSA. These accounts once were not as popular, but now have become an acceptable way of funding health insurance coverage. The benefits of a HSA are given here for you to consider:
High deductible. Of all of the features of an HSA, the high deductible is a cause for worry among those who do not have a lot of cash to cover the amount needed. But, this is the alternative to high monthly premiums. When looking at a HSA policy, you must factor into your budget the funding of the deductible amount. This means that every time you are paid, you must put some of that money away for a deductible just like you would for taxes and other necessities. That is where the savings part of this comes into play which will be discussed soon. If you do this, then you will eventually accumulate what you need in order to meet the deductible before coverage kicks in.
Catastrophic coverage. A HSA account is helpful for catastrophic coverage of health care related issues. It is not a good policy for on-going care. You might need to consider other policies that provide for specific support for other types of coverage. In fact, it is wise to look into supplemental coverage policies that offer low premiums for things like hospital income and the like. These can help you manage other parts of coverage that will support your main HSA policy.
Affordable premiums. It used to be that premiums for health care insurance were out of reach for most small business and self-employed persons. Now, with a HSA, the premiums are much more affordable, even less than half, of what traditional policies charge.
Savings Account Driven. The main benefit of the HSA is the savings account attached to the policy which allows for depositing of pre-tax dollars to use for the deductible or other health care expenses which are qualified under the plan. And, if you do not use the money, it accumulates interest and is there when you need it.
Fine Print Details. Keep in mind that not all HSA policies are the same. You will find many different options from many different providers. It can be confusing, but if you look long enough, you can find one that fits you and your situation.
HSA accounts appear to be here to stay. They offer solid coverage for an affordable premium. Look into one today to see if it works for you.