Savings Account (MSA) Health Insurance
The old Medical Savings Account (MSA) Health Insurance has been referred to as an "IRA for health insurance". Qualified MSA plans feature catastrophic insurance coverage with deductibles starting at $1550 for an individual and $3100 for a family. The family deductible is an aggregate deductible where all members of the family's expenses can go towards meeting the deductible. However, if just one person gets the entire family deductible needs to be satisfied before benefits are payable under the base plan.
addition to the deductible, there is coinsurance that the insured is responsible
for on the next $2000 of expenses. Generally this is either 50% or 20% that
the insured pays. After the insured pays this coinsurance the insurance
company pays 100%. There is a maximum of 2 coinsurances in a family
plan. Typically the total out of pocket exposure in a family MSA plan would
not exceed $5000 including the deductible.
Thoretically MSA health insurance plans are supposed to offer dramatic savings in health insurance premiums in return for the insured taking on the responsibility for their own medical expenses in the beginning (until their deductible is met). Unfortunately the plans currently available to Rhode Island individuals and groups aren't priced well enough in our opinion to warrant taking on so much exposure. Many low deductible plans priced well below what available MSA plans are priced at are available and make much better financial sense. If you are considering an MSA, contact Health Plan Specialists today for an MSA quote to see why the plans currently available may or may not be worth applying for.