How to Use an Individual California Health Insurance HSA Plan to Pay for Family Health Care Services

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How to Use an Individual California Health Insurance HSA Plan to Pay for Family Health Care Services
How to Use an Individual California Health Insurance HSA Plan to Pay for Family Health Care Services

For California health insurance consumers on the lookout for innovative strategies in their affordable California health insurance plans to save money throughout the year, look no further than this great strategy!

Let’s say you’re looking for a California health insurance plan strategy that can save you money on your family’s health coverage with no sacrifice to plan performance. Is it always the best strategy to go the ‘family health plan’ route? Perhaps not and here’s where the always free, careful and considerate client consultations you can secure with your Vitality California health insurance professional can be a real difference-maker! We’ll review your family’s health coverage needs and apply innovation and caring concern to your efforts to secure health coverage that comes with the best benefits that are uniquely right for you at the most affordable price for your California health insurance plan.

Let’s take one example where the use of a HSA-compatible health plan in conjunction with a PPO health plan can provide an innovative way to save you money. Let’s use the plans from Blue Shield of California as an example since Blue Shield continues to provide child-only health plans here in the state. Rather than purchase a father and son plan – say a Vital Shield Plus or Balance Plan, jointly, at a higher premium rate – we instead decide to select a Balance Plan for the young son: Balance Plans are child-friendly; featuring a low copayment for doctor office visits and preventive care (Which includes immunizations.) and allows for unlimited number of medical doctor visits. They also will give your child important protection when it comes to prescription drugs because it provides coverage for both brand name and generic prescription drugs. The annual deductible options range from $1,000 per member on the low end to $2,500 per member on the high end. And for dad? Well dad is an active, healthy young man who also happens to be quite the saver. He’ll take the Shield Savings 3500 HSA Plan which comes with a free annual preventive care exam and the option to include a Bridge Plan rider that will pay $1,500 towards dad’s annual deductible if he is hospitalized for over 72 hours in the first year he owns the plan (The rider is $5 a month or $60 total for the year so it’s a great deal and dad says yes to that deal!).

While the Shield Savings 3500 HSA Plan does come with a $3,500 medical deductible it also features a lot of benefits that come with $0 for the plan owner after that deductible is met! And: With this plan, dad also gets covered access to both brand and generic prescription drugs after the deductible have been met! HSA-compatible health plans typically come with a lower monthly premium so the savings start right from the first day as we’ve just built a health coverage strategy with two separate standalone plans instead of one joint family plan.

…and this strategy features a special bonus we know you’ll like: Dad’s HSA-compatible health plan features that HSA component: Whatever money dad saves in his Health Savings Account (2010 Individual Limit is $3,050) is tax deductible for that year (Despite the fact that dad doesn’t itemize!) and here’s where it gets even better: Dad can use his own HSA funds to pay for his son’s qualified medical expenses which would include his copayments for office visits or a prescription drug purchase! (For more specific information please refer to IRS Publication 502.)

Here’s another interesting use of dad’s HSA funds: While Dad would have liked to purchase a California dental insurance plan for himself and his son, it just wasn’t in the cards this year. But: With money dad has saved in his HSA, he can use that money to pay for qualified dental (and vision!) expenses he and his son will have during the course of the year so while an affordable California dental insurance plan may be in next year’s budget, there is an important financial instrument dad can use to cover dental services in the interim!

While we used the example of a dad and his son there’s another scenario where a HSA-compatible health plan can provide innovative health coverage options: One spouse can use their HSA funds to pay for the qualified medical expenses of the other. So here again if going with two separate health plans creates a more consumer-friendly health coverage strategy depending on your family’s unique needs and you feel as we do that the HSA-compatible health plan offers its owner the twin advantages of cost savings and important tax advantages, a strategy featuring a HSA-compatible health plan for you (Or your spouse.) and a PPO plan for the other is the way to go, we’re here to help you create strategies that fit your unique requirements for health coverage!