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for health and life Insurance!
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What's Better for Me? A Traditional Health Plan or A Plan That Permits Funding A Health Savings Account (HSA)?

What's an HSA?

Health Savings Accounts (HSA’s) can be used in conjunction with High Deductible Health Plans that have out-of-pocket maximums for 2020 at or below $6,900 for individuals or $13,800 for families (maximums will be increased to $7,000 and $14,000 in 2021) and that pay 100% of all covered expenses after the out-of-pocket maximum is reached.

Higher individual and family out-of- pocket maximums are permitted for 2020 ACA plans, BUT HSA’s cannot be established for any High Deductible Health Plan that has out-of-pocket maximums that exceed the $6,900/$13,800 threshold for 2020 (these amounts will be increased to $7,000/$14,000 in 2021).

Per Affordable Care Act requirements, these plans cover 100% of preventive care benefits without a deductible. Some carriers cover preventive generic drugs for certain conditions (examples are high blood pressure and high cholesterol) as part of this preventative benefit.

If you're buying an Affordable Care Act plan and are concerned about protecting yourself against unexpected hospital or other catastrophic costs, purchasing a Bronze level High Deductible Health Plan, funding a health savings account, and coupling this with either a hospital indemnity plan and/or an accident plan may be a more cost effective way of lowering your overall premium and, in effect, reducing your deductible rather than buying a Silver, Gold or Platinum plan.

High Deductible Health Plans have a maximum single deductible AND family deductible of $6,900 and $13,800 respectively for 2020 (increasing to $7,000 and $14,000 for 2021). Note that higher deductible ACA plans are and will be available for 2020 and 2021 plans, BUT these plans can’t qualify as High Deductible Health Plans and hence can’t be coupled with an HSA.

People who establish an HSA account can fund that account with a bank or other financial institution and use that account (usually through use of a debit card) to pay for any qualified medical expense (generally any health, dental or vision care expense excluding cosmetic procedures). Annual contribution limits for an HSA are $3,550 for an individual and $7,100 respectively for 2020.  (The limits are raised to $3,600 and $7,200 respectively for 2021.) In addition, individuals age 55 or over can make yearly "catch-up" contributions of $1,000, but only one catch up contribution can be made per HSA account.

NOTE:  The 2020 CARES Act has made changes in qualified medical expenses retroactive to January 1, 2020.  Feminine hygiene products are now qualifying medical expenses. And you can use an HSA for over-the-counter (OTC) medications without a prescription.  See the link to qualified medical expenses in the above paragraph above for details.  In addition,  High Deductible Health Plans may cover telehealth and other remote care services before participants have met their deductible without affecting their eligibility to make HSA contributions. The telehealth and other remote care services provisions are temporary and will sunset December 31, 2021, unless Congress extends them or makes them permanent.

Amounts contributed to a Health Savings Account are tax deductible. This means that someone who pays for an expense from his or her Health Savings Account saves the equivalent of that person's federal marginal tax rate (and state marginal tax rate in almost all states with state income taxes), including taxes for Social Security and Medicare. For example, an individual who has a $1,000 expense to pay and who has a 32% federal marginal tax rate and no state income tax will actually only be paying $680 for the service if s/he pays that from his or her Health Savings Account.

How Does a Traditional Office Visit Co Pay Plan Work?

Traditional office visit co pay plans have a co pay for items like doctors' visits and a deductible (possibly with coinsurance thereafter) for major expenses like hospitalization. Traditionally, these plans had separate coverage for outpatient drug expenses, either with or without a deductible but with co pays and or coinsurance.

Before 2014, people who had these kinds of plans had a separate deductible for health expenses and, in essence, a separate plan to pay for drugs. While the health care part of the plan usually had out-of-pocket limits, the drug portion of the plan often had no such limits. Most of these plans required three separate family deductibles until the family deductible could be met.

The Affordable Care Act changed how these plans work. The ACA permits only one individual and a family deductible. Moreover, the drug portion of the plan counts against the maximum out-of-pocket limit, whereas formerly the drug plan operated essentially as a separate plan with or without an out-of-pocket maximum for drugs.

What Does This Mean For Me?

An individual or family purchasing an Affordable Care Act plan will normally have choices to select EITHER a High Deductible Health Plan (with or without a separate HSA account) or a traditional office visit co pay plan. Individuals who have always had traditional office visit co pay plans may find that it's more cost effective to purchase a High Deductible Health Plan and fund a Health Savings Account.

2020 HSA Calculator

This calculator developed by Bank of America is designed to help you calculate your savings in 2020 if you buy a High Deductible Health Plan and establish a health savings account. By using an HDHP/HSA solution, you can often realize significant savings on your insurance premiums and receive a deduction on your income taxes. 

You can also add a hospital indemnity and/or accident medical expense plan to your current health coverage to reduce your exposure to large out-of-pocket expenses in the event of hospitalization due to a sickness, or to an accident.  Click here to obtain a quote.

2021 Schedule
Affordable Care Act Open Enrollment

Open Enrollment begins November 1, 2020 and ends December 15, 2020
on the federal facilitated marketplace for plans to start January 1, 2021.

Before the next open enrollment period starts you can only enroll
for an Affordable Care Act plan if you have a qualifying life event.

You may be eligible to enroll for another type of plan.
Call us at 561-734-3884 or 877-734-3884 for details.

2021 Schedule
Medicare Annual Enrollment Period

Annual Enrollment begins October 15, 2020
and ends December 7, 2020 for a January 1, 2021 effective date.

You’re eligible to enroll now if you’re first becoming eligible for
Medicare or are eligible for another type of enrollment period.
Enrollment rules differ between Medicare Supplement plans and
Medicare Advantage, Medicare Advantage Prescription Drug,
and stand-alone Prescription Drug Plans.

Call us at 561-734-3884 or 877-734-3884 for details.

family consulting

We offer a comprehensive set of Affordable Care Act (“Obamacare”) plans

to individuals and families qualified to buy health (tax- and non-tax subsidized) insurance and dental/vision and/or hearing plans through the Federal marketplace (this is called buying “on-exchange” or “on-marketplace”) or directly from insurance carriers (this is referred to as buying “off-exchange or -marketplace”). Our Affordable Care Act policies comply with the Affordable Care Act and contain all of the “essential health benefits” required by that law.

The dental/vision and/or hearing insurance

products are available both on an insured or discount basis

We offer short-term health insurance policies

for those who are looking for more inexpensive coverage and shorter term alternatives.

We offer Medicare Supplement, Medicare Advantage, and Part D Drug plans

to Medicare beneficiaries. Our site is compliant with federal, state, and carrier guidelines in selling these policies. See the Medicare section of this site for details.

We represent many carriers that offer supplemental benefits

to both individuals and families and Medicare beneficiaries, and the site contains information about hospital indemnity, cancer, critical illness, gap, accident, and international medical insurance offered by many different carriers. This section of the site also contains valuable information and tools about lowering the cost of prescription medications. Call us if you want more information about or would like to enroll in one of these products.

We also offer Short- and Long-Term Disability products

and can also help you meet the costs of long-term care, nursing home, or short-term (recovery) care needs.

Finally, we have a complete array of Life, Final Expense, and Annuity products

and offer pre-need services in Florida, as we have both life insurance and pre-need licenses in that state.

You pay nothing for our services:

we’re paid directly from the carriers we represent, Premiums are NEVER EVER marked up to include paying us for our services: you pay the same whether you order directly from the carrier or the marketplace on your own or directly through us or from our site.

We ONLY offer alternatives that are suitable for you and for which we feel meet YOUR needs.
When or if we feel a product or service is not appropriate for you from either a cost or benefit point of view we will tell you so.

We’re fully compliant with privacy and security guidelines, have signed all required privacy and security agreements, have developed a privacy and security policy, and take extraordinary steps to safeguard your protected health and personal information.
In short, we’re experts in all aspects of health and life insurance and also have relationships with professionals who can help you with very specialized situations.

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