Why HSA Plans are better than Co-pay Plans
October 2, 2007 on 2:34 am | In Uncategorized |As an insurance broker, and RHU, who has specialized in helping individuals and small businesses get the best health insurance value they can qualify for for the better part of 20 years, I can not only say but I can PROVE that there are NUMEROUS benefits to choosing a HDHP (high deductible heath plan) along with an HSA –OVER a co-pay plan– and not just for the young, rich and healthy, but for EVERYONE!
So called “experts” who say that “co-pay plans are better for some people” especially those who are sick or elderly are just plain WRONG. The reason they are wrong is that the object of health insurance, like any insurance is to protect your assets against a catastrophic loss. With a co-pay plan you have no such protection as your co-pays go on and on the sicker you get. Ten $50 Rx co-pays per month adds up to $6000 per year - JUST for Rx co-pays alone!
Furthermore, it pays to sit down with the client and itemize the client’s healthcare needs and costs. Having them count towards a deductible, if the insurance is priced well enough is going to be much less expensive than having the insurance company pay for part of the costs under a co-pay arrangement. The roll of a good agent should be to find that definitive plan with a reasonable deductible and an affordable premium.
What you get with a HDHP and an HSA is 100% STOP-LOSS Protection after you meet your deductible and or total out of pocket responsibility. There is NO SUCH THING as TOTAL OUT OF POCKET RESPONIBILITY or 100% protection AT ANY TIME with a co-pay plan. Instead with a co-pay plan your losses get bigger and bigger the sicker you get (or the more you need real protection).
American’s have been given poor advice in my opinion regarding how to select a health insurance plan and sadly many health insurance agents aren’t doing a very good job of helping them. Many are just order takers for $10 office visit co-pay plans. However, when you add the higher costs of the insurance and the unlimited out of pocket exposure potential and compare that to an alternative that offers STOP-LOSS protection; tax savings; lower premiums and much lower bottom line cost — even after adding in the Deductible or total ouot of pocket costs, a properly selected HSA qualifed high deductible health plan is the ONLY WAY TO GO — FOR EVERYONE!