Blue Access for Producers

What are the advantages of a high deductible insurance plan?

What are the advantages of a high deductible insurance plan?
High deductible health insurance plans typically cost less than traditionally lower deductible coverage, yet they can still offer substantial coverage for a wide range of services. 

The minimum annual deductible is $1,250 for individuals and $2,500 for families. BlueEdge Individual HSA and BlueEdge Individual HSA 5000 from Blue Cross and Blue Shield of Illinois are priced among the lowest of our major medical health insurance plans, yet they cover the same services as our top of the line major medical plan.

What are the advantages of an HSA?

  1. Control: The money in an HSA belongs to your clients. They decide how to spend it based on their particular health care needs and budget. They can even use their HSA to pay the medical expenses of family members not covered by their high deductible health care plan. NOTE: Funds withdrawn other than for qualified medical expenses may be subject to tax and a 10 percent penalty.
  2. Flexibility: Your clients can deposit (until age 65) or withdraw their money any time without a tax penalty as long as they use it for qualified medical expenses. There is a yearly maximum amount for contributions.
  3. Portability: Your client's HSA is theirs for life. They own the HSA and keep it - even with a health plan change or retirement.
  4. Tax Savings: There are triple tax savings with an HSA. 
    1.) An HSA allows your clients to put away money for medical expenses before taxes are taken out. This means they can set aside income-tax-free dollars in an HSA to pay for qualified medical expenses.
    2.) Savings in HSA checking account and investment vehicles grow tax-free. 
    3.) Your clients pay no taxes or penalties when they use funds from their HSA to pay for qualified medical expenses, and all deductible levels qualify for these advantages.
Is an HSA right for your client?