Megapolis Insurance

Healthy as we may seem today, we never know when illness can strike. Would switching from a full-coverage plan to a high-deductible health plan with a health savings account (HSA) be a wise decision to make? What if you need to meet a high deductible? You may be surprised to find that when you add up how much you can save on premiums and by reducing your taxes, it could actually cost less even if you do have to pay for health care until a high deductible has been met.

If you have good health and do not need much medical care, a high-deductible insurance plan that has low premiums can be a “no brainer.” If you are in a high tax category, an HSA or Health Savings Account can definitely help lower your federal income tax and state income tax in almost all states. Even though you may have to pay for health care until you meet that high deductible, if you get new coverage now, you won’t have out-of-pocket costs for preventive services. Those are 100-percent covered with health care reform.

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Proponents say that only Health Savings Accounts separate health care from insurance. For example, say you have family coverage through work that costs the employer $12,000 annually. If your employer pays for all the premiums and you have $25 co-pays to see a doctor, your expense is limited.

In contrast, if your employer still spends $12,000 a year, but puts $5,000 of it into a Health Savings Account (HSA) in your name, $5,000 of your health care benefit is now legally yours. Instead of a co-pay plan, your employer must buy a High-deductible Health Plan that’s qualified to work with an HSA.

Preventive care is 100-percent covered, but you’ll have to pay for other services until the deductible has been met. Any Health Savings Account funds you don’t spend on health care are yours to keep. That’s distinctly different from Flexible Spending Accounts, which are “use it or lose it” at the end of the year.

Each year, your employer contributes $5,000 to your HSA. As long as your health remains good, the balance in the HSA account can grow with tax-free earnings. It’s yours to keep if you change employers or retire.

The American Journal of Managed Care published the largest assessment of Health Savings Account plans to date. The new RAND Corporation study showed that Health Savings Account plans significantly cut health spending and motivated patients to cut back on preventive health care.

With more than 800,000 families around the country participating, researchers found that shifting to Health Savings Account plans with deductibles of at least $1,000 correlated with an average drop in health spending of 14 percent compared to families who had health plans with lower deductibles.

At the same time, families that moved to high-deductible plans significantly cut back on preventive health care, included critically needed services. They cut back on cancer screenings and routine tests for diabetes, as well as childhood immunizations.

Amelia M. Haviland, a study co-author and a statistician at the nonprofit RAND research organization said, “This suggests people are cutting both necessary and unnecessary care.”

High-deductible health plans have been on the increase in recent years.

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Aviva has set up a new US network for its International Solutions healthcare customers, with Miami-based Olympus Managed Healthcare.

Managing over 125,000 claims a year, Olympus has access to medical provider networks across the US meaning that Aviva’s customers can now access around 6,000 hospitals, over half a million physicians and 57,000 pharmacies across the country.

Aviva will pick up all medical bills direct from network providers, removing the need for individuals to settle bills themselves.

In addition, the insurer has increased its International Solutions benefit limits and added StandbyMD, which provides policyholders with access to a physician any time of the day or night in 4,000 cities across 86 countries.

Aviva UK international business lead, Teresa Rogers, comments: “Global healthcare and the needs of our customers continually change, particularly in relation to international healthcare provision.”

She adds: “By listening to our intermediaries and customers, we’ve been able to focus on improving the right things.”