Most people never have to learn about the Colorado individual health insurance market because they belong to their employer's group plan. When they do start to shop for individual plans, they are surprised at the difference in price. That same PPO plan offered by a former employer is priced a lot higher on the individual insurance market. Instead of going for low-cost office visits and 100% hospitalization coverage, the average person will need to revise their expectations when purchasing a Colorado individual health insurance plan.

 

If you are self employed, working part time, or semi-retired, you will want to learn about the most affordable plans available.  One option that is more popular than ever is the Health Savings Account (HSA) plan, which is usually paired with a Qualified High Deductible Health Plan (QHDHP). While not nearly as comprehensive as a group PPO plan, these permanent health plans are the most affordable forms of Colorado individual health insurance.

 

A Colorado health insurance broker can explain these plans in greater detail, but here are the basics:

 

A Health Savings Account (HSA) is a tax-deferred bank account that is used to pay for qualified medical expenses, including deductibles, co-pays, prescriptions, and other qualified medical expenses. When you sign up for certain Colorado individual health insurance plans, an HSA may be attached‚ to it. This means that part of your monthly premium will be deposited into the account. Most HSAs come with a debit card that can be used to pay for medical expenses, and the accounts can be managed online. At the end of the year, the funds deposited into an HSA are tax-deductible.

Why do I need an HSA to fund my non-covered medical expenses?

An HSA is particularly useful when your health insurance has a high deductible. Many of the QHDHP plans offered on the individual market have deductibles of $1,500 and up. By saving money in an HSA, you will be able to pay for medical expenses before the deductible is met. After that, the health plan will often cover 100% of your expenses.

While this may sound confusing, it is actually quite manageable. Most Colorado individual health insurance plans will give you an out-of-pocket maximum, which is the total amount you would need to pay in a calendar year before 100% coverage kicks in. Knowing this number up front takes the guesswork out of planning for healthcare expenses, and members love the tax deduction that comes from their HSA contributions. Keep in mind that all the funds in the HSA account are rolled over from one year to the next. Even if you cancel the health plan, the money in that account is never lost.

A Colorado health insurance broker can review the details of these affordable Colorado individual health insurance plans. Michael Horvat is a health insurance expert and broker with HealthQuotes.com in Colorado Springs, CO. If you are searching for Colorado health insurance plans or quotes, please give Michael a call anytime at 800-345-0789.

< Prev		Next >