Those shopping for group health quotes for business health insurance are undoubtedly coming across HSA insurance plans. Those plans contain a tremendous financial incentive to use the savings offered over PPO plans (i.e., co-pay plans) to cover the cost of routine of out pocket expenses and prescriptions.
Any reader of this blog knows our Agency encourages businesses to consider business health insurance with Trustmark and its arm for group health insurance for small business through Starmark. We also encourage consideration of a carrier endorsed by State Farm Insurance...Assurant Health.
Assurant Health actually was one of the first carriers in the marketplace to embrace HSA insurance plans. Starmark's HSA plans are equally competitive and provide an equal financial incentive.
The recent quote for a Monumental Contracting Services shows a rate of $534 a month for Single Coverage with Blue Cross and a rate of $325 a month under Starmark's HSA plan. The monthly savings of course is essentially $200 a month, or $2400 over the course of the year.
This annual savings of $2400 is at the heart of an HSA plan. In a nutshell, an HSA plan says we are going to give you, instead of the insurance company, $2400 to pay the cost of your office visits throughout the year. You understand that your routine office visit costs $100 to $150 at negotiated rates, and you typically visit the doctor 3 or 4 times a year.
In other words, the HSA plan is going to put $2400 in your pocket and you are going to pay $500 to $600 to cover the office visit for a cold, sore throat, sprained ankle etc. The money saved is for the employee to keep forever. In this illustration, a net savings of $1800 a year.
So the question is very simple...do you want to give that $2400 to the insurance company to cover your routine office visits & prescriptions; or, would you rather keep the $2400 in your own pocket and pay for the costs of those office visits and prescriptions yourself -- and keep the savings? That is the question than an HSA insurance plan is asking you as you shop for business health insurance.
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