|
Health coverage is probably the most expensive of all the different styles of
insurance. Not only in purchase dollars but in dollars spent by companies on claims. There may be as many as ten health insurance
claims to every one property claim. If you are not offered health insurance from
your job, the cost can be shocking . If you are not covered on your job, consider a high deductible. The higher the deductible
the lower the cost.
At present there is a federal provision for Health Savings Accounts where an individual
is allowed to deduct the amount placed in these accounts. The account is set up so that the individual can elect to pay an
additional premium to be placed in these accounts for use toward the deductible which is required to be higher than commonly
elected by the purchaser (usually over $1100) and other ecpenses that are usually out of pocket expenses.
A very
attractive feature of HSA's is the ability of one to manage their health well enough that the funds held in the account
exceeds the peg amount (the amount expected to be needed for the annual deductible plus incidentals), this excess can be diverted
to another tax free savings vehicle.
Even though most states have a provision for those changing
jobs to continue their coverage for up to 18 months under the COBRA plan, the replacement has to be made. This creates
new rating criteria that will mean higher premiums if the individual considers a non-group plan. Coverage under the COBRA
plan will usually cost more since the employer may have paid part of the premium. The 18 month limit
can be extended through a request citing the special conditions to be considered for the extension. There are also exclusions
attached to this program that preclude participation for some.
|
