BCBSFL Vs UHC GR Plans

[Chazm]

I'm not too up on under 65 health plans so I figured I'd get your opinion on the better option for me.

A little about myself. I'm 31, Male, single, no dependents, no health problems, no meds. I really only have health coverage to cover Major medical. I don't want to be stuck with a $100k bill.

I currently have UHC GR CoPay Select $10k deductible and 70/30 co-ins. It's about $62/month and of course includes doc visits for $35 I believe which is not a big deal either way.

I see BCBSFL has a plan called the Blue Options 706 for $96.00. It only has a $250 Ded and 90/10 Co-ins. I know it only covers up to $50 for a doc visit but I really don't go anyways. It seems if I were to be hospitalized that the BCBS plan would be a million times better than my $10k ded plan.

Am I missing something? I usually hear that BCBS is usually overpriced. If I were to spend $96 with UHC I could maybe get a $5k deductible plan but it still wouldn't compare.

Does anyone know anything wrong with the BCBS plan I mentioned?

 

[YouGotMyMoney]

BlueOptions
706

Physician Office Services Family Physician: $50 maximum applied towards the visit
Specialist: $75 maximum applied towards the visit

Emergency Room Facility Services (per visit) Surgical Services - Coinsurance after DED is met

Non Surgical Services - $500 Per Visit DED + DED + Coinsurance

Pharmacy Benefits (includes diabetic equipment and supplies) Retail - $15 maximum to apply towards Generic or Brand prescription drugs
Mail Order - Not Applicable


Enuff said

 

[Yagents]

I think what your doing now, and what you're considering are both foolish. I'll assume you're making a decent income ($60k?).

1. You should buy a $5000-$6000 HSA plan with Rx from cheapest co in your zip. You should contribute $3000 to your HSA. When you factor in the tax deductions, of both the premium and HSA contirbution, I would bet your real price of insurance is lower than what you own now or the plan 700's at BCBS

2. What you own now has UNLIMITED out of pocket risk. You cannot tell me a final OOP #. The BCBS policy is full of situational holes. Unless you know God, and you know what type of condition you may contract, and what type of treatment you need......I would choose being a humble man, knowing you can break.

Ex: $125/mo premium X 12 = $1500
plus $3000 contribution to HSA = $4500
assume 20% tax bracket = $3600 after taxes
Minus the $3000 (no growth) in HSA = $600/yr
= $50/mo for defined out of pocket risk of 5k

You're an agent, this is all about money, it should be a slam dunk for you. It's funny, but usually I'm re-training my clients

 

[0b1kanobee]

What are you trying to accomplish?

 

[Chazm]

I think what your doing now, and what you're considering are both foolish. I'll assume you're making a decent income ($60k?).

1. You should buy a $5000-$6000 HSA plan with Rx from cheapest co in your zip. You should contribute $3000 to your HSA. When you factor in the tax deductions, of both the premium and HSA contirbution, I would bet your real price of insurance is lower than what you own now or the plan 700's at BCBS

2. What you own now has UNLIMITED out of pocket risk. You cannot tell me a final OOP #. The BCBS policy is full of situational holes. Unless you know God, and you know what type of condition you may contract, and what type of treatment you need......I would choose being a humble man, knowing you can break.

Ex: $125/mo premium X 12 = $1500
plus $3000 contribution to HSA = $4500
assume 20% tax bracket = $3600 after taxes
Minus the $3000 (no growth) in HSA = $600/yr
= $50/mo for defined out of pocket risk of 5k

You're an agent, this is all about money, it should be a slam dunk for you. It's funny, but usually I'm re-training my clients

Thanks, that does sound like a good option. To be honest, I'm not too up on the HSA plans (I work the 65 and over) and I'm still not even sure how you got to the $50/month, but I'll take your word on it
- - - - - - - - - - - - - - - - - -

What are you trying to accomplish?

Beats the **** outta me!

 

[AllGold]

A $5K deductible HSA plan with 0% coinsurance and Rx coverage should be about $100/month for you.

The HSA-compatible insurance plan itself (not the savings account) is a very simple plan. Your deductible is $5K. Your total annual out-of-pocket risk is $5K. The end.

On a copay plan or a plan with coinsurance you usually don't know what your OOP risk is. Say next year you're diagnosed with something nasty like multiple sclerosis. With the HSA, again your OOP is $5K. With either that GR copay plan or the BCBS plan, your OOP risk is potentially astronomical. Say your MS drugs cost $40,000 per month. How much are your drug copays?

For the savings part, every dollar you put into the Health Savings Account is 100% tax deductible. You can contribute up to $3050 per year this year. What goes into your HSA effectively decreases your taxable income by that amount. Put in $3000 and at a 20% tax rate you "get back" $600 by reduced tax liability.

 

[Chazm]

A $5K deductible HSA plan with 0% coinsurance and Rx coverage should be about $100/month for you.

The HSA-compatible insurance plan itself (not the savings account) is a very simple plan. Your deductible is $5K. Your total annual out-of-pocket risk is $5K. The end.

On a copay plan or a plan with coinsurance you usually don't know what your OOP risk is. Say next year you're diagnosed with something nasty like multiple sclerosis. With the HSA, again your OOP is $5K. With either that GR copay plan or the BCBS plan, your OOP risk is potentially astronomical. Say your MS drugs cost $40,000 per month. How much are your drug copays?

For the savings part, every dollar you put into the Health Savings Account I is 100% tax deductible. You can contribute up to $3050 per year this year. What goes into your HSA effectively decreases your taxable income by that amount. Put in $3000 and at a 20% tax rate you "get back" $600 by reduced tax liability.

Ok thanks I think I get the tax savings now

 

[dgoldenz]

Ok thanks I think I get the tax savings now

The OOP max is the major point....the tax benefits are just a throw-in. This might help:

Publication 969 (2010), Health Savings Accounts and Other Tax-Favored Health Plans

 

[Yagents]

I must have typed too fast

 

[Ann H]

Good explanation, guys. The original poster said he didn't know quite what he was trying to accomplish. What he COULD be trying to accomplish is to purchase quality health insurance that controls his risk of a catastrophic loss, at a reasonable premium, in the most beneficial way for the long-term, and in the meantime learn how to help clients do the same thing. The HSA the other agents described is the ticket to all of the above. At the age of 31, with an excellent history of good health, he could sock away quite a bit of money (tax deferred) in the HSA. I wish everyone did that when they were 31.