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How
to…
How
to Choose an HSA-Qualified Health Insurance Plan
HSA plans
are simple and easy to understand. If you need some basic information
on how Health Savings Accounts work, visit our HSA
page and our HSA Q and
A page.
When you are
ready to choose a plan, follow the directions below. It
usually takes no more than 10 minutes or so to choose the best
plan for your needs.
- Get an
Instant Quote.
Our instant quote engine can rapidly show you the available
plans in your area, so that you can get an overall feel of what
premiums will be for the different HSA plans. To see just
the HSA plans, change the “Plan Type” on the Customize
Search tab at the top of the page to “HSA”.
Note that not all insurance companies and plans are available
in all areas.
- Compare
premiums. We recommend initially comparing premiums on
just the 100% plans. These plans pay 100% of covered expenses
after your deductible, and will allow you to make the maximum
HSA contribution with the minimum out-of-pocket exposure.
This will
quickly give you a feel for which companies are most competitive
in your area. In order to look at just 100% plans, set
"Your Coinsurance" on the Customize Search tab to
"
10%".
- Decide
if you want a plan that pays for outpatient charges, or if you
want a more catastrophic plan that only covers charges while
you are hospitalized. You can lower your premium by choosing
a plan that covers only inpatient doctor visits and prescription
drug expenses.
You can quickly
see if the quote you're looking at covers these expenses by
clicking the Details link next to the instant quote result,
and looking up Office Visit and Prescription Drugs.
The following plans cover outpatient doctor visits and prescription
drugs, subject to the deductible and coinsurance:
The plans
vary by state, the following plans do NOT cover outpatient
doctor visits, and are usually less expensive than other
plans:
The following
plans do NOT cover outpatient prescription drugs (though
they may provide a discount card), and may also be less expensive
than other plans:
- You may
want to consider choosing a higher deductible on your HSA plan,
and adding a $100 deductible accident policy. Stand-alone
accident plans that cover $5,000 or $10,000 after the $100 deductible
can be viewed on our Accident
Plans page.
Because these
accident plans are very inexpensive, you may be able to keep
your premiums lower while greatly reducing your exposure for
the type of claim you're most likely to need your health insurance
for - an accident.
- After narrowing
your choices, you will probably wish to look at the plan in
more detail. If so, you can find additional coverage details
on our Choose a Plan page,
and you can also download a company brochure.
You
may also wish to check the insurance company's PPO network to
see which doctors and hospitals are considered in-network providers.
Having access to a PPO network can mean substantial discounts
in what you pay for your health care, even before you
meet your deductible. The link to each plans PPO network
can be found on that company's page on our site.
How
to Apply for Coverage
Applying for
HSA health insurance and establishing an HSA is quick and easy.
Most companies allow you to apply online. Or you may simply
print out an application and fax it to us at 866-284-0082, or
mail in your application to the address below.
Apply Online
The easiest
and most efficient way to apply for an HSA plan is online through
an insurance company's secure online application. This
will enable you to avoid the hassles of filling out a paper application,
and will speed up the process by instantly transmitting your information
directly to the insurance company’s underwriting department.
The
application usually takes about 10 minutes to complete.
Most, but not all insurance companies offer an online option.
You may apply
online by running instant
quotes, and apply online for most plans we offer right
from the quoting system's results page. Or simply select
the apply online link below for the plan you are interested in.
All online
applications are 100% secure. Most use SSL certified 128
bit encryption. Anthem uses Sun's Java Cryptography
Extension which implements RSA Laboratories, "PKCS #5: Password-Based
Encryption Standard," version 1.5, Nov 1993.
Mail
or Fax an Application
You can download an application for the plan you are interested
in, print it out, fill in all the required information, then fax
it to us toll-free at (866) 284-0082 or mail it to us at
the address below.
See
the chart below for instructions to apply with each insurance company:
What
Happens After You Apply
When you apply for a health insurance plan through ColoHealth,
we immediately submit the information to the insurance company's
underwriting department. Before your policy is issued it
must be approved. This process can take anywhere from an
hour, to three or four weeks, depending on the insurance company
and your particular health history.
We monitor
your application while it is in the underwriting process, and
keep you informed every week. We use our experience and
connections to make sure your policy gets issued as quickly
as possible. If any additional information is needed,
we'll let you know. We will inform you as soon as you've
been approved, and make sure that you're happy with your coverage.
We're Here to Help
As you've
probably noticed, our website is very complete and should answer
most of your questions. However, if you need personal
assistance, we are happy to help. You may communicate
with us in the following ways.
-
If you have a quick question for us, the best way to get an
answer is to use our contact
form, or call and leave a message with the receptionist.
We do return calls and emails as quickly as possible, but
we are often on the phone consulting with clients and unable
to take incoming calls.
-
If you are ready to apply, and need to talk to someone
briefly before applying, please contact
us with the word URGENT in the subject, or call and
ask the receptionist if one of our agents is available.
If you are unable to reach someone right away, tell the receptionist
to mark your message as urgent, and we will get back with
you as quickly as possible.
-
If
you are serious about choosing a plan, and are looking at
a premium of over $300 - $500 per month, you may want to schedule
a telephone consultation
before you sign up for a plan. We will help you fully
analyze all your options, let you know the pros and cons of
the various plans you are considering, and give you our professional
opinion as to which plans will best meet your needs.
We'll then help you get enrolled with the plan you choose.
To schedule
an appointment, just call our office and let the receptionist
know that you'd like to schedule a time to speak with us.
She'll gather some basic information from you, so that we can
review some plan options prior to our meeting. There is
no charge for this service, but we will request some basic information
prior to the meeting so that we can run quotes and begin to
analyze your options.
How
to Establish Your Health Savings Account
Once you have
applied for a high deductible health insurance plan, you'll want
to go ahead and set up your Health Savings Account. You
are not required to establish an HSA, but by funding the account
as soon as possible you'll be able to take advantage of the tax
deductions and tax-deferred growth that HSAs offer.
To establish
your HSA, follow the steps below:
- First,
you will need to choose the bank or trustee that you would like
to administer your HSA. While some insurance companies
offer to administer your account (only if you have their insurance
plan), you may also choose to work with an outside, third party
administrator.
For a list
of companies offering HSAs, please visit the HSA
Administrator page of our sister company, HSA
for America. There you'll find information
on fees, interest rates, and investment options.
If you plan
on keeping the money invested in an interest-bearing savings
account, you'll want to initially look at the fees that the
various administrators charge, and choose one with lower or
zero fees, such as American
Charter Bank. Many of our customers choose to
place their HSA funds with an administrator that offers investment
options, such as HSA
Bank.
- Once you
have chosen your administrator, you will need to download their
enrollment form. You may obtain these forms on the
HSA
Administrator page by clicking on the name of the company
you've chosen. At the bottom of the administrator's web
page, you can obtain their enrollment form by clicking the link
that says "Open their Application."
- After downloading
the proper enrollment form, you will need to send it, along
with your opening deposit, to the address listed on the enrollment
form. You will receive your introductory packet, including
complete instructions on how to make future deposits and the
options you have for withdrawing your funds, in approximately
two weeks.
How
to Maximize Your Tax Benefits
An HSA plan
is really a pretty simple concept. You have a high-deductible
health insurance plan, which you hope to never use. But
if something big does happen, it will protect your assets and
cover your medical expenses. But there are a few things
that you should know that can make a big difference in how much
money you spend, and how much money you accumulate in your account.
There are
basically three different strategies you can take when deciding
how to fund your health savings account.
- Put no
money in the account, except when you incur a medical expense.
This strategy allows you to legally "launder" any
money used to pay medical expenses. In other words, by
depositing money into your HSA, then immediately withdrawing
it to reimburse yourself for medical expenses, you are making
your medical expenses all tax-deductible. You may want
to use this strategy if you are on a tight budget and want to
keep your cash outlay as low as possible.
- Fully
fund the account, or at least put in as much as possible based
on your budget. Take money out of the account any time
medical expenses are incurred, and let the rest grow tax-deferred.
This strategy will maximize your tax deduction, while making
your HSA funds available to pay any non-covered medical expenses
before your deductible is met.
- Fully
fund the account, but pay all medical expenses from a non-HSA
account. Reimburse yourself for medical expenses at a
later date. This strategy will allow you to maximize your
tax deduction, and will also allow you to maximize the tax-deferred
growth of your HSA. You can then reimburse yourself, tax-free,
at any time in the future for medical expenses incurred over
the ensuing years. (For an example of this strategy, see
Maximize
Your HSA, Issue 3).
To maximize
the potential growth of your funds, you may want to make your
HSA deposits as early in the year as possible. Any growth
in your account is tax-deferred, like an IRA.
How
to Keep Your Health Insurance Premiums Low
Raise your
deductible as your HSA account grows.
When you fund
your account you build up a financial "cushion" which
allows you to raise your deductible as your account grows.
Every time you raise your deductible, your premium should go down.
By the way,
don't forget that every time you fund your account you get an
instant tax deduction. When you offset the tax savings against
your premiums, you'll find your net cost for an HSA plan can be
very low.
The maximum
allowable contribution goes up every year with the rise of the
Consumer Price Index. In 2008 the individual contribution
limit is $2,900, and the family limit is $5,800. So each
year you can deposit greater amounts into your HSA and continue
to raise your deductible, if you choose.
Stay healthy,
so you can switch plans.
All health
insurance plans have rate increases. If a rate increase
happens to you, you can switch to a different insurance company
- but only if you pass their underwriting requirements.
If chronic disease develops, you may be stuck with your current
plan, and its accompanying rate increases, for eternity.
Or at least it may seem that long…
If you pay
attention to the pharmaceutical commercials, you learn lifestyle
really has nothing to do with disease, and it is natural and healthy
to be on many medications for the rest of your life, which will
then solve your health problems.
If you pay
attention to the science, you know the truth is quite different.
It appears lifestyle is probably 95% of the picture, and we know
the occurrence of degenerative disease can be dramatically reduced
and even prevented.
We've found
many HSA owners are interested in wellness, and disease prevention.
After all, they're paying for their own doctor visits if they
do get sick. We also believe it is because HSA owners are
"forward thinking" people, and like to plan for their
future - both financial and physical. You can improve your
odds of excellent health with just a few key habits:
- Eat very
high quantities of fresh vegetables and fruits. Shoot
for 35% of your calories. This will lower your risk for
diabetes, high blood pressure, heart disease, cancer, and more.
- Limit your
intake of sugar and starchy carbohydrates like bread and pasta.
The majority of health problems in the U.S. are related to metabolic
diseases that involve insulin resistance, a direct result of
eating too many processed foods.
- Exercise
and lift weights. Exercise guru Jack La Lanne recently
turned 92, and he says if you have muscles you never feel old.
Compare
your plan to other available plans at least once a year, or whenever
you get a rate increase.
Oftentimes
people keep their plan much longer than they should, and end up
paying much more than they should. If your rates go up,
you can compare a wide variety of plans on our Instant
Quote System. If you have your coverage through
ColoHealth,
we automatically do this analysis of available plans for you any
time we are notified of rate increases.
Subscribe
to Maximize Your HSA.
Maximize
Your HSA is a free monthly newsletter published by HSA
for America via email, where you are kept informed
on innovative ways to lower your health insurance costs, lower
your health expenses, and maximize the benefits you get from your
HSA.
You can also
keep up with current news and information on Health Savings Accounts
by visiting their HSA
Blog.
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