North Carolina Health Savings Account (HSA) Insurance
How An HSA Health Plan Works
A North Carolina Health Savings Account (HSA) Plan pairs a High-Deductible Health Plan (HDHP) with an HSA where you can save money for medical expenses in a tax free account. The HSA allows you to use the money you saved to pay for future medical expenses when they arise. With an HSA, you will pay out of pocket for most medical expenses until your deductible is met. There is a predefined list of preventive services that are covered at 100% (no cost to you) each year.
Since there are no copayments with a North Carolina HSA, you pay the total cost of your care until your deductible is met — even for doctor’s visits, unless it is for preventive care. After that, you pay coinsurance for covered medical expenses until you reach your total out-of-pocket maximum. Once the total out-of-pocket maximum is met, your plan pays 100% of covered medical expenses.
The High-Deductible Health Plan
You may be concerned that adequate health insurance is beyond your reach. Many consumers do not realize they have several options available when it comes to choosing a health plan. Health plans with higher deductibles are often more affordable than traditional copayment plans. Many people choose a copayment plan because they want the predictability of knowing exactly how much they will spend for doctor visits and prescription drugs. However, the truth is that 73% of customers with traditional plans do not reach their annual deductible each year.
With a high-deductible health plan, you pay a much lower premium but you pay for your health care expenses up front until you meet your annual deductible. Instead of paying a copayment for office visits and prescriptions, you pay the negotiated discount rate for your medical care, until you meet your deductible. High-deductible health plans always offer 100% coverage for preventative care such as annual physicals, immunizations, mammograms, etc., regardless of whether or not you have met your deductible. All qualified medical expenses are applied to your deductible. This includes prescriptions, office visits, emergency room visits, procedures, lab tests, and more.
Consider The Benefits
Although you pay for health care expenses out-of-pocket until you meet your deductible, a North Carolina Health Savings Account (HSA) and High-Deductible Health Plan (HDHP) can give you the most value for your health care dollar over the plan year. When you compare the potential expenses of a traditional copayment plan, you may see that the HSA plan can provide a better value.
HSA contributions and interest earned carryover from year to year allowing you to build up your savings over time. You will never lose your savings or pay taxes as long as your HSA funds are used to pay for qualified medical expenses. If you elect to cancel your HDHP then you can no longer make contributions to your HSA, but you can continue to spend your savings on qualified medical expenses.
As a North Carolina resident you can pay for qualified medical expenses with pre-tax dollars and save for retirement on a tax-deferred basis. Health Savings Account (HSA) plans do not have to be mysterious or complicated. Contact one of our agents today to learn more on how an HSA can save you money.
Complete the Free NC Health Savings Account Quote Request form now to have one of our agents begin finding ways to save money on your North Carolina Health Insurance.