Start Health: The HSA-Eligible Indemnity Plan
Those who are familiar with Health Savings Accounts (HSAs) know that the main qualifying factor is a high-deductible health plan. Those with employer-sponsored, high-deductible plans benefit significantly from their HSAs, but what about those on insurance alternatives like indemnity plans? Are they able to take advantage of an HSA’s triple-tax advantage?
Historically, indemnity plans have not been eligible for HSAs due to their supplemental nature, lack of comprehensive coverage, and no/low deductibles.
Enter, Start Health, the unicorn of indemnity plans.
Start Health offers comprehensive coverage and protection against high-cost medical bills, and Start Health indemnity plans meet the IRS standard for a high deductible. “High deductible” may sound off-putting, but in reality, it saves most people significantly on insurance costs. Many people believe that the coverage on low deductible plans kicks in sooner. However, as inviting as “low deductible” may sound, it is important to remember that low deductible health plans go hand-in-hand with high premiums. When you pay your deductible, you are paying for healthcare that you actually receive, but when you pay for premiums, you are paying for “what-if” costs: “What if I go to the ER? What if I catch the Bubonic plague? I’d better fork out a bunch of money each month, so I know I’ll be covered in case something happens.” But how often do you actually go to the doctor? Does it really make sense to pay high premiums when you go to the doctor’s office twice a year? (“The Truth About High Deductible Plans”)
