If you're in the market for permanent Colorado health insurance that is not sponsored by an employer or group, then you may have heard about Colorado health savings accounts (HSAs) or even a Qualified High Deductible Health Plan (QHDHP). Most people get very confused when they first learn how these plans work, but in reality they offer the lowest premiums for Colorado individuals and families.

Before you meet with a broker or make your own decisions about Colorado Health Insurance, you owe it to yourself to check out these plans to see if they will meet your family's needs.

Health Savings Accounts (HSAs)

In the state of Colorado, a qualified HSA plan is actually more than just a savings account. It is an inexpensive insurance plan with high annual deductibles, usually ranging from $2,500 to $10,000. The only things that are automatically "covered" under these plans (meaning before a deductible is met) are certain preventive care services, such as an annual check-up, OB/Gyn exam or mammogram. Other than that, all covered expenses are the responsibility of the insured until they meet the deductible.

A tax-deferred savings account is set up in conjunction with these plans, where members can contribute pre-tax dollars to be used to pay for medical expenses before the deductible. Ultimately, the best way to have one of these plans is to keep the balance on the HSA account at the same amount of the deductible. This way, the out-of-pocket expenses can be paid for with the debit card from the health savings account. At the end of the year, any contributions to the HSA will be tax-deductible, but an HSA can also be used to pay for non-covered medical expenses, such as braces, OTC medications and health club memberships.

The reason these plans work so well for families is because it allows them to get a low monthly premium with a maximum out-of-pocket expense that can be covered through tax-free dollars. In addition to being a great way to manage individual Colorado health insurance, these accounts also allow for unlimited investment options. If the funds are never used to cover medical expenses, they will be accessible in the same way that a 401K or IRA account.

If you want to move forward with one of these Colorado health insurance plans, it makes sense to speak with an experienced health insurance broker who can steer you in the right direction. Not ever provider offers HSAs or QHDHPs, and the ones that do each have their pros and cons. Consult with a health insurance broker from HealthQuotes.com and learn more about these affordable Colorado health insurance options.

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.

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