High Deductible Health Plans: Not as Scary as They Sound!
“High Deductible Health Plan”—yikes, that name alone might make you want to run in the opposite direction. If just reading the word “high” makes your wallet feel lighter, you’re definitely not alone.
Economist Benjamin R. Handel discovered that when given a choice, most Americans instinctively pick a low deductible health plan. Sounds safer, right? Who wouldn’t want their insurance to kick in ASAP? But here’s the kicker—low deductible plans usually come with high premiums. That means you’re paying a hefty sum every month, just in case something happens.
Think of it like this:
When you pay your deductible, you’re covering actual healthcare costs. When you pay high premiums, you’re forking over cash for those “what if” moments: What if I get the flu? What if I twist my ankle? What if I accidentally swallow my gum and it really does take seven years to digest? Before you know it, you’re paying big bucks for coverage you barely use.
And here’s the plot twist:
According to The New York Times, in many cases, the “cheaper” healthcare plan (the one with the high deductible) actually saves you money in the long run.
So, how do you make a High Deductible Health Plan (HDHP) work for you?
Step 1: Understand your health insurance benefits.
Step 2: Maximize your Health Savings Account (HSA).
An HSA-based plan like Start Health gives you insurance coverage plus a tax-free health savings account. You can use your HSA funds for eligible medical expenses, and they can count toward your deductible and coinsurance. Oh, and preventative care (like annual checkups)? Those are still covered at no cost!
Maximizing Your HSA = Maximizing Your Savings
An HDHP is most powerful when paired with an HSA. Here’s how you can make the most of yours:
- Contribute as much as possible. The 2025 limits are $4,300for individuals, $8,550 for families. Get as close as you can!
- Let it grow! The longer you leave your HSA untouched, the more it grows—like a savings account for your future healthcare needs.
- Invest it! Yes, you can invest your HSA funds, and they grow tax-free. (Cha-ching!)
Start Health is here to make sure you’re not one of those people who pay more without getting anything extra in return.
As The New York Times puts it:
“Because of human quirks, lack of understanding, and overly complicated plans, many people are paying more without getting anything extra in return.”
Don’t be that person. Let Start Health help you spend smarter and save bigger!
