Annual Cost/Benefits of Health Savings Accounts
The next example is a bit
more complicated. The time period is a year as opposed to a month.
Also, it assumes there has been a large medical bill during the year.
The total cost bar for the traditional plan
is $3,400. That is the cost of a year of premiums paid ($200x12= $2,400) plus
the $1,000 you paid out of pocket because, up to then, you had not met your
deductible.
*This graphic shows
the comparison of a tradition health plan with the HSA plan when there has been
a $1,000 medical bill.
Meanwhile, the HSA has paid the $1,000 out of the HSA fund and
$1,200 in premiums for a total of $2,200. This is $1,200 less than the
traditional plan pay out of $3,400. But that is before you consider the M$300 in
tax saving on the $1,200 you paid into the account. Therefore, your actual
benefit of the HSA plan is:
$1,200 less paid
+ 300 in tax savings
$1,500 in benefits
This represents a significant advantage of
the HSA over the traditional health plan. Consequently, even though the medical
bill cost you $1,000 out of your HSA fund, you still saved a considerable amount
of money.
In conclusion, we at AAP believe there are compelling reasons to use a Health
Savings Account for your health care needs. If you agree and would like more
information, please take the next step.
Next Step
If you
are an individual or own a business and would like a quote for cost of an
individual or small group HSA plan,
please call us at (914) 962-5715. We'll collect the company census,
obtain quotes, compare them with your current coverage, and report the
results to you.
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