The next lesson is designed to help you decide between a High Deductible Health Plan and a Copay plan.
A Copay plan is a plan that is designed to save you money at the time you receive care. You will be charged a small amount of money per doctor visit. You may be limited on the number of visits you can have covered under the copay benefit. For people seeking predictable costs, copay plans can be a good option.
With a copay plan you will have a higher monthly premium however your insurance will offer first dollar coverage. That is, your insurance will pay benefits from the moment you first walk in to a clinic or doctors office for a visit. Typically these plans will feature a lower deductible as well as a lower maximum out of pocket limit. Prescriptions can also be covered with a copay, so make sure that you take a look at your policy details as well as the carriers formulary before you enroll in coverage.
High Deductible Health policy’s will feature a lower monthly premium when compared to a copay plan however it will have a higher deductible and maximum out of pocket. If compatible, you will be able to take the money you will be saving in monthly premium and put it in a Health Savings account. This savings account will allow you to save tax free dollars, accumulate interest without tax, and take those dollars out tax free, as long as the money is being used for authorized medical expenses. This triple tax savings will allow you to save for future medical expenses. This type of policy is great for people that don’t expect many claims in the near future.
To find out more about HSA’s, check out our video!
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