Corporate Wellness : When it comes to health savings accounts, you’ve to separate the hype from the reality. One of the large myths – a high-deductible plan with an HSA means lower premiums.
Posted by Corporate Wellness | Posted in Corporate Wellness, Wellness Programs | Posted on 18-09-2010
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In fact, it varies. In some cases, an HSA-eligible plan may cost the same as a non-HSA high-deductible plan. In others, the premiums can actually be more expensive, a recent NHPI report locates.
As a matter of fact, a non-HSA plan offering similar coverage can carry a monthly per-employee premium that’s about $15 to $25 lower and a deductible that’s $500 to $1,000 lower than the HSA choice.
Sometimes the difference is due to price-jacking – the HSA plans are the ones that’ve been hyped in radio commercials and mentioned in newspapers in recent years.
Nowadays, fewer individuals exploring high-deductible plans ask first about the non-HSA, so insurance organizations sometimes slash prices to drum up interest in those options, too. Another factor – Not all deductibles work the same.
Deductible cuts both ways
Two deductibles can look similar but work differently, and the cost scales can tilt for either an HSA or a non-HSA plan. Example – HSAs by law can no longer allow first-dollar coverage of prescription drugs. But a non-HSA plan can.
On the flip side, HSAs often feature better preventive-care coverage. In some non-HSA plans, a person who’s yet to meet the deductible must pay out of pocket for standard tests (example – cholesterol testing) that’re part of the routine physical. Only the office visit itself is covered.
Additionally, HSA-eligible plans have to follow rules that limit sum out-of-pocket costs. But this can push up the premiums paid on the front end.
Best bet – Double-check with your broker to be certain you’re comparing apples to apples when assessing the costs of HSA and non-HSA plans.