How to Compare HSA Plans

Health savings account (HSA) plans are relatively new but have fast become among the most popular plans in the health insurance industry because they let you take control of your health care. The account operates like a checking account that you use to pay your medical expenses. You decide how much to contribute and where to invest it, and you can withdraw the money tax-free. HSA plans come in the form of a high-deductible health plan (HDHP). Different HDHPs have different benefits, of course, but you need to make sure they're HSA-compatible if you want to set up an HSA.

Instructions

Selecting an HDHP

• 1

  Make sure your preferred doctor accepts the insurance carrier for the HSA-compatible HDHP. There is no point in joining a health plan if the doctor you prefer doesn't accept the carrier or if there isn't a large enough network of doctors in your area. Call your doctor ahead of time to find out what insurance plans he accepts.

• 2

  When choosing an HDHP with an HSA, seek the advice of a licensed insurance agent, either an independent agent or one working for an insurance carrier. The agent can help guide you through the process. Some questions to ask the agent: How much can you contribute to the HSA account? What are the tax benefits of the HSA?

• 3

  Know your deductible. In an HSA-compatible HDHP, the deductible represents the amount you have to pay per year before the insurance company begins paying benefits. The IRS has set the 2010 maximum deductible limits for HDHPs at $5,950 for individuals and $11,900 for families, although most HDHP deductibles never get that high. For instance, with Blue Shield's Shield Savings 2400 and 4000 plans, the deductible for an individual is $2,400 in the 2400 and $4,000 in the 4000. Double those amounts for a family. While those deductibles might seem high, the insurance company has set them up as a way to encourage you to start an HSA.

• 4

  Know how much you can contribute to the HSA. For 2010, the Internal Revenue Service has increased the contributions amount to $3,050 for individuals and $6,150 for families. The amount of your deductible and your expected health care needs will obviously influence how much you decide to put in the account. Money in the HSA accumulates interest and rolls over to the following year if you don't use it all in one year.

• 5

  Make sure medications are covered in the HDHP. Some insurance plans cover only hospital costs, but you can pay for medications with money from your HSA account.

• 6

  Find out whether the HSA-compatible HDHP covers such services as ambulances, home care, obstetric-gynecological services, outpatient surgery and lab and radiology tests. Some HDHP/HSA plans, such as the Shield Savings 4000, don't cover anything until you have met the deductible, but with the Shield Savings 2400, you make co-payments before you meet the deductible.