How To Protect Yourself Against High Health Insurance Deductibles
Traditional health insurance plans typically come with high deductibles and coinsurance responsibilities. For example, as of the date of this post, someone with an ACA plan, also known as Obamacare, will most likely pay up to $9,100 of their healthcare costs in addition to the monthly premium they pay if they incur serious injury or illness.
At Work Perks Pro, we recommend medical cost-share plans over traditional health insurance. But if someone chooses to have traditional health insurance, we can help them with something called a health matching account. In a nutshell, a health matching account allows an individual to build up savings that can be used to offset the high deductible of their health insurance plan. Generally speaking, when an individual puts a dollar into their health matching account, their dollar is matched by the health matching company, dollar for dollar.
A person can spend money from their health matching account right away on medical, dental, and vision needs, but they’re better off if they let their account build up for several months before they spend money from it. It takes some time to for the account to build up, but with the matching account we recommend, a person can literally double their money over a 35-month period. For example, if a person contributes $140 per month into their matching account, they will have $10,000 available to spend on healthcare needs at the end of the 35-month period.
Do the math. $140 per month multiplied by 35 months equals $4,900 of contributions into the matching account, but the individual’s account will have a balance of $10,000 because the matching account company will have matched the individual’s contribution by an additional amount of $5,100. A health matching account literally gives you the ability to spend someone else’s money on medical, dental, and vision needs.
By the way, you can also spend money from your matching account on elective medical procedures such as lasik, dental implants, and even cosmetic surgery. Reach out to Work Perks Pro to learn more about how you can pay for your healthcare needs without having to use traditional health insurance.
