A health savings account (HSA) is a personal savings account that you can use to pay for qualified medical expenses. The money in an HSA account comes from contributions by the employer or employee. However, if an employee wants to make additional contributions, they can do so, provided that it does not exceed the maximum amount set by the law. For individual health coverage, an employee can contribute as much as $3000. The maximum amount of lump sum contributions for a family health coverage is $5,950.
Money in an HSA account is tax advantaged so there is a lot people who opt to open an HSA. Contributions are classified as pre-tax contributions which means that the sum of your HSA contributions will be deducted from your gross income, resulting in lower income taxes for you. Additionally, an HSA earns tax-free interest. Withdrawals in your HSA are also tax-free. This makes an HSA a sound investment opportunity for anyone.
Due to the tax-advantaged status of HSAs, many people opt to open one. However, opening an HSA account is not the same as opening a regular savings account in your bank where you just present the required documents and you will receive a passbook or an ATM card. One needs to be enrolled in an HSA-compatible health insurance plan in order to open an HSA. An HSA-compatible health plan is a high deductible health plan (HDHP). This means that people enrolled in an HSA-compatible health plan pay higher deductibles and lower monthly premiums. There are many companies that offer HSA-compatible health plans.
Once an individual is enrolled in an HSA-compatible health plan, he should visit his bank and request to open an HSA. The bank will then issue a debit card or a checkbook to the individual which he can use to pay for qualified medical expenses. He can choose not to use the money in his HSA since he is the owner of that money. At the end of every calendar year, whatever money is left in the HSA account will be rolled over to the next year. Because of this, some plan holders of HSA-compatible health plans do not withdraw funds from their HSAs unless they are going to pay thousands in medical expenses. Simply put, the account holder has control of the money in his HSA.
If a person decides to discontinue with his HSA-compatible health plan, he can no longer make contributions to this HSA but he can still use the money in his account to pay for qualified medical expenses. Should he decided at a later date to enroll in an HSA-compatible health plan, he can resume contributing to his HSA.
Keep in mind that not all HSA-compatible health plans are equal. Some offer FREE coverage for preventive health care services, while some do not. So be sure to choose one that offers such a benefit. It is also important to note that married couples can have separate HSAs provided that their HSA-compatible health plans do not have family coverage.
Do you have an active lifestyle? Would you like coverage effective tomorrow? Would you like preventive dental and vision insurance included in your health plan?
If you answered yes to the questions above, then you are definitely an ideal candidate for the Anthem Blue Cross Tonik Plans. Tonik is especially designed for young people who live an active lifestyle and want great catastrophic coverage. With 3 different Tonik Plans to choose from, choosing the right plan for you is made easy!
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Calculated Risk Taker aka $1500 This health plan would be an ideal choice for someone who has extreme hobbies such as snowboarding, rock climbing or sky diving. You may be a professional at your trade but face it, accidents do happen and you are at greater risk of having one if you live life on the edge. The Calculated Risk Taker limits your out-of-pocket expense to $1500 per year. This means once you satisfy your deductible of $1500 you are covered at 100% for the rest of the year! You have unlimited co-pays offered at $40 every time you see a doctor making this plan the ideal choice for the individual that sees a physician frequently.
Part-time Daredevil aka $3000 If you’re into skateboarding and biking every weekend, or love playing a game of tackle football when you get the chance, this may be the plan for you. You pay $30 per doctor’s visit, which is limited to four visits per year. After you have fully paid the deductible of $3000, you are covered at 100% for the rest of the year including doctor’s office visits! If you don’t see a doctor for routine check ups very often then you should consider the Part-Time Daredevil option, there is no use in paying a higher monthly premium for unlimited office visit co-pays if you aren’t going to use them.
Thrill-Seeker aka $5000
This plan brings with it a more attractive monthly premium and may work well for the individual who enjoys lower risk activities such as hiking and camping. While the Thrill-Seeker would still work for extreme adrenaline junkie it makes more sense for the individuals who aren’t as apt to have an accident. If you are on a tight budget, remember, it would be better to choose this plan than have no coverage at all, this plan can still limit your out-of-pocket expense to just $5000 per year. Would you rather pay $5000 or $250,000 for a catastrophic emergency? Case settled. You will only pay $20 for doctor’s visit (limited to 4 visits) until you fully pay your deductible of $5000. After that, you can waltz in anytime at a doctor’s office without paying anything. Like the two preceding plans, emergency room services, professional services, and overnight hospital stays will cost nothing once the deductible has been paid along with the services of physical therapists and chiropractors provided you use an Anthem Blue Cross in network provider.
It is important to remember, only generic drugs are covered at a $15 co-pay (for 30 day supply) and $30 co-pay (for 60 day supply). If you require brand name prescription drug coverage then the Tonik Health Plans may not be the best option for you. Of course, we here at J.C. Lewis Insurance Services are always here if you need assistance in finding the right plan. Our services are at no extra cost to you!
All plans the plans include FREE preventive and diagnostic dental care services such as teeth cleaning and dental x-rays. Maximum dental benefit is $500 per year.
Eye care benefits are also included in all the plans. Tonik will cover $80 for your contact lenses or $100 for frames every 24 months. In addition, the Tonik Health Plans will pay $50 for an eye exam every 12 months.
One of the most important things that people take into account when choosing a health insurance plan is the price. Often times, shopping for a health care plans becomes a stressful undertaking because its difficult to find one that fits your financial capability. Fortunately for residents of the state of California, Anthem Blue Cross offers three different health plans for the budget-conscious consumer. Here they are:
SmartSense– This is one of Anthem Blue Cross’ lowest priced health care plans. An individual may choose a deductible of $500, $1,500 $2,500, or $5,000. For the first three doctor visits, the plan holder will have to pay a co-pay of $30. Policy holders will have to pay 30% of fees and charges (until out-of-pocket expense has been met) for professional services, hospital inpatient and outpatient services, emergency room services, and preventive care services after satisfying their deductible. The SmartSense plans do not offer maternity coverage.
RightPlan PPO 40– If paying a deductible isn’t your thing, then this plan is for you. The policy holder will immediately pay 40% of professional services, hospital inpatient and outpatient services, emergency room services, and preventive care services until the out-of-pocket expense of $7,500 has been met. Regular doctors’ office visit co-pays are offered at $40 every time you see a doctor. Like the SmartSense, this plan does not cover maternity care service.
PPO Share Plans – This is the most comprehensive health care plan offered by Anthem Blue Cross. The deductibles include a $1,500, $2,500 and $5,000 option. Unlike the two other plans, PPO Share plans cover maternity services in which the policy holder will pay 30% of negotiated fee after satisfying a deductible. This is ideal for families looking to have more children. Doctors’ office visit co-pays are offered before deductible at $35 while specialists office visits are a $40 co-pay.
Keep in mind that all three plans carry prescription drug coverage in varying amounts. The SmartSense plans in particular will offer full Rx or just generic Rx while the Right Plan PPO 40 will offer full Rx, just generic or no Rx at all! Of course these different options all come with a different monthly premium. You may want to contact us here at J.C. Lewis Insurance Services to determine the best Rx option for you.
Policy holders of any of the three plans can opt to add dental coverage to their plans. Anthem Blue Cross of California offers a variety of options for your dental insurance needs. J.C. Lewis Insurance Services can advise you on which dental plan will best suit you and your family. We not only can show you the dental plans, their benefits and premiums but we will also call your dentist to confirm which dental plans he/she may be contracted with.
In addition, Anthem Blue Cross policy holders can choose to add term life insurance to their health care plans. Monthly rates range from as low as $1.50 to as high as $185, depending on the coverage level and age of the person being insured. By choosing to add term life insurance to their health care plan, consumers can be sure that their families will be left with some financial support on the event of their death.
Money in an HSA account is tax advantaged so there is a lot people who opt to open an HSA. Contributions are classified as pre-tax contributions which means that the sum of your HSA contributions will be deducted from your gross income, resulting in lower income taxes for you. Additionally, an HSA earns tax-free interest. Withdrawals in your HSA are also tax-free. This makes an HSA a sound investment opportunity for anyone.
