Affordable Health Insurance Rate
WHY WHY WHY!!!! Is so-called “affordable” health insurance so ridiculously expensive???
Here in WI they consider $479/month for a married couple affordable! That is with a $2500 deductible!! It just doesn’t make any sense to me. Can anyone tell me why the rates are so very UN-AFFORDABLE? One simply can’t afford to get sick or maintain one’s health…
I am assuming you have an individual policy. The premiums are high because there is typically “adverse selection” (i.e. typically it’s the unhealthy individuals or high utilizers who buy these policies) in the individual market.
If there are no flat dollar co-pays or a drug card attached to the policy (i.e. every service, including retail prescription drugs) is subject to the deductible or covered at a % of charge (coinsurance), this policy would qualify as a “High Deductible Health Plan” (HDHP).
According to IRS rules, if you have an HDHP and no other health insurance coverage, you can contribute money into a Health Savings Account (HSA). You can deduct the amount of your HSA contribution from your federal income taxes. You may withdraw the money in the HSA to pay the deductible and other health care costs like dental and vision expenses. To be an eligible expense it must be listed by the IRS as such.
If you take advantage of the HSA you will be paying the deductible with before tax money instead of after tax money. This will lessen your tax bill to Uncle Sam. You can invest the HSA dollars in any manner, just like an IRA. Distributions are tax free if used for qualified medical expenses.
See a tax advisor or check with a local insurance professional for advice.
