HSA account for individuals?

Question

hello,

I am trying to get health insurance for my parents. Mom = 50, Dad = 51. They don't have insurance (can't get insurance) through their jobs. So we need to set them up with a health plan. They are pretty healthy from what I know. No serious hospitalizations or things like that. Mom has high blood pressure. Dad used to smoke, but doesn't anymore.

I have found a 3000 deductible Aetna plan with an HSA. I am confused at what the HSA respresents. We are in the low middle class income range and we are a big family. We are looking for something that has a 0% co-insurance so if something does happen we don't pay alot of money. The monthly premium we are all going to pitch in.

Can you please check this page and tell me if it seems reasonable

https://ips.aetna.com/Retail/PDF/Brochures/NV%20High%20Deductible%20MC%203000%20(HSA%20Compatible).pdf

but please explain the HSA account, where can we open it? how does it work?

thank you

Answer 1

With the HSA plan you are looking at your parents will pay for all DR visits prescriptions etc up to $3,000 per person. That could be $6,000 per year. The actual HSA account will allow your parents to deposit up to $5,800. The purpose of the HSA bank account is to provide a way for your parents to save money so they will have cash on hand to pay for the deductible. The HSA also provides tax savings, the money deposited is tax deductible just like an IRA. The money in the HSA can be used to pay the deductible as well as other qualified medical expenses such as over the counter medication, dental and eye care, glasses contacts and exams. The nice thing is if you don't spend the money in the HSA you can keep it for future use. Like an IRA you can remove the money from the account at any time but if it is not for a qualified expense you will pay taxes onthe money and a 10% penalty. you may find this HSA video presentation helpful it is on the left side of the page http://www.insurancemadeeasy.biz/Assuran...

Answer 2

An HSA account is a separate savings account that you can put money into. You must have an HSA qualified plan to open the account but you do not have to open an account. You can open the account through the insurance company or many local banks have HSA account options.

An HSA doesn't have any coverage prior to the deductible, however, you do get the negotiated rate that the company has with the doctors when you use medical services. The idea of the HSA account is a place to save money for those doctor visits prior to the deductible.

Visit a local independent agent that works with Aetna before signing up with this plan. The high blood pressure may cause a 25 to 50% increase in premium for your mother and if it's not controlled may result in a decline. The agent can contact the underwriters in your behalf to see what if any premium increase they may have.

I have an HSA qualified plan so I do believe in them. Aetna is a good company but the independent agent may find a better plan for them. There is no extra charge using an agent.