New agent with question about high deductible, HSA insurance.

[Guest]

You might like to look at it like this:

Would they rather pay the $5K (with possible payment options) or be faced with the entire amount if they go uninsured?

I have several prospects that need low cost medical insurance which of course means a high deductible policy. Is it ethical to sell this type of policy knowing they can't afford a $5,000 deductible even with an HSA? The last thing I want to do is mislead people but I also don't want to see them completely out in the cold.

 

[cdpowell]

What is the alternative to your client choosing a high deductible plan? Is it going uninsured? Lets say that your client has a $100,000 claim and they have a $5000 deductible, most hospitals will let them make payments over a period of time. That is more attractive than bankrupcy.

 

[HealthGuy]

Matty B: An HMO? How does this differ from major carriers most of us offer? Do you mean a smaller, just regional provider as HMO? Sorry I don't get it.

 

[burlewd]

Keep in mind with the HSA they can make monthly payments to the hospital through the HSA with tax free dollars. 5000. X 20% tax bracket will be a $1000. in tax savings off that bill and if they do not get sick they can use the money for dental, vision, any medical expense. Just make sure that they open a HSA account at the bank. Not all banks have HSA accounts (yet) look for one with no fees.

 

[LGilmore]

well I hate to say this but insurance is probably not an option for a $7 an hour worker unless provided by an employer.... a 5,000 dollar deductible is just as big a hole as a 100,000 bill to someone in that cost range. That's basically down so far that looking up doesn't matter.

People making this kind of wage are the working poor. They do need some sort of government program. They are paycheck to paycheck people. These people are making $280 a week, if they're full time.

I honestly don't think there's much you can do in that market as they probably lack savings and much of anything else.

 

[moonlightandmargaritas]

Well, down here in So. Fla, we have Vista which is an hmo.

If some one can not afford , a ppo plan ...Meaning deductible + co ins, not prem...then an hmo might be an option for them.

HMOs (including Vista) generally have a higher monthly premium than a PPO plan. In addition, they have various deductibles and co-payments. Not sure this is a viable alternative.

 

[Alston]

I find that people in the low income arena are more interested in outpatient services and drugs that cover their pre-existing.

Insurance is meant to protect assets. No assets = no need for insurance.

I disagree. Insurance protects both current and future assets.

While is is true that you can go to the hospital and get care if it is a medical emergency regardless of income and assets, you will be billed.

They will in many cases get a judgment against you if you don't pay the bill.

This may mean that you can never own a house, always pay the highest interest rates for cars and never get out from under. Low income people need health insurance also and HSA plans can be excellent options for them.

A judgment free credit report gives a man or woman more options.

 

[Jeanie2]

Keep in mind with the HSA they can make monthly payments to the hospital through the HSA with tax free dollars. 5000. X 20% tax bracket will be a $1000. in tax savings off that bill and if they do not get sick they can use the money for dental, vision, any medical expense. Just make sure that they open a HSA account at the bank. Not all banks have HSA accounts (yet) look for one with no fees.

Thanks for this information. I haven't seen any HSA accounts without fees. Can you share this information?