Are High-Deductible Health Plans Worth It?
More employers are offering high-deductible health care plans as an alternative to traditional health care coverage, which costs employers more.
Under a high-deductible plan, the employee assumes some of the risk for health care expenses by agreeing to pay for a larger chunk of medical treatment. The employee's benefit comes from the provision of a Health Savings Account (HSA) -- a personal account of funds withdrawn from the employee's paycheck by the employer and dedicated for the sole purpose of reimbursing out-of-pocket medical expenses. The portion deposited into the HSA is tax deductible.
At first, these accounts might seem like a reduction in employee benefits. However, in many cases employers would not be able to offer medical benefits without them. Although costs for small, non-emergency events are transferred to the employee and some other types of care might cost them more than under traditional plans, an HSA covers major health care needs that can quickly become unaffordable.
If your employer offers a high-deductible plan with an HSA or you're considering switching jobs to an employer who does, consult with the company employee benefits department about the coverage. If you find that the plan doesn't cover your dependents or if you have questions about private coverage alternatives, one of our Health insurance specialists would be glad to help. Just give us a call.