family health care ins.$69 a month

Discussion in 'Business Operations' started by bobbygedd, Mar 25, 2004.

  1. bobbygedd

    bobbygedd LawnSite Fanatic
    from NJ
    Posts: 10,178

    answered an add in the newspaper. "family health care....$69 per month". so i call, and this is how it works: you send them a check for a minimum of $69, or a maximum of whatever you want. ok, so, this money gets put into an account.lets say you choose to pay $100 a month, after 6 months you have $600 in your account. say now you need to go to the doctor, an office visit averages $75. but, this company will get you a discounted rate, say $50. this money is taken from your account, and now your account balance is $550. i'm like, huh? sounds like a bank account to me. what a crock
     
  2. rodfather

    rodfather LawnSite Fanatic
    Posts: 9,501

    Lemme think...nope, I'll pass.
     
  3. mtdman

    mtdman LawnSite Gold Member
    Posts: 3,137

    It's called a medical savings plan, it was one of Clinton's great ideas for self employed people. I looked into them for a while, big waste of time and $$. It might cover doctor's visits and perscriptions, but what about the bigger hospital visits? A stay in the hospital for even one night could get up to $10,000 depending on the reason. Those plans are a big waste of time imo.
     
  4. DanaMac

    DanaMac LawnSite Fanatic
    Posts: 13,156

    I am in a medical savings plan. You have a maximum that you would have to pay for the year. For our family (of 2) it is $3000. And the money you put into the plan earns I believe 3%. At least with our plan. It keeps your monthly premium low, which is good if you're fairly healthy. We were paying $280 month for 2 people and never used it. Now $150. Maybe 2-3 times each in 3 years. So your out of pocket payment to the doctors or hospital, not including your monthly premium, has a max amount.

    Ours sounds a little different than what bobby was talking about though.
     
  5. TSM

    TSM LawnSite Senior Member
    from MA
    Posts: 707

    Health Savings Accounts are new in 2004. They allow anyone who has qualifying high deductible insurance to fund a Health Savings Account that is 100% tax-deductible. The money can be used tax-free for medical expenses, and if it's not used, it rolls over year to year. At age 65, the money can be used like a retirement plan, or still saved for future medical expenses.

    Key words- qualifying high deductible insurance

    Now with all health insurance now being 100% tax deductable.... I dont know...is it better to upgrade insurance policy?
     
  6. FarrisFrog

    FarrisFrog LawnSite Member
    Posts: 35

    The $69 plan that someone was talking about is a rip off--those type of plans are not sold by licensed agents. Medical Savings Accounts (MSA) now called Health Savings Accounts (HSA) are. The way they work is different that the usual 80/20 plan that we are all used to which gives you a Dr copay, prescription copays etc. By the way... those cheap Dr copays and cheap prescription copays cost you extra premium for the privilege to have them.

    The way an (HSA) works is you have one single calender year deductible that is met for everything (Dr visits get applied, prescriptions get applied, lab and x-rays get applied and god forbid any catastrophic situation IE: hospital stay or surgery gets applied. You will get the negotiated rate for having insurance with the Dr and Hospital network that your in and that varies by carrier, the most popular is TX is PHCS. It is not like you are going in and paying full price. For instance lets say your Dr charges $120 for a Dr visit you may pay $70 for the Dr visit which gets applied to your deductible. After your calender year deductible is meet you are then 100% covered up whatever the lifetime maximum is for your carrier. Your deductible can be anywhere from $1000 to $10,000. Again the deductible is a collective effort for your entire family so rather than having individual deductibles you only have one collective single deductible. If your healthy and don't visit the Dr or get prescriptions often this is ideal because what your concened about is the major stuff. Going with out it in our business---not wise!!!

    This type of health insurance also allows you as of this tax year to put 100% equivalent of the deductible you choose into a separate account tax-deferred. So if you have a $3000 deductible you can also put $3000 into your Health Savings Account. Very cost effective for a healthy individual or family because the premiums are usually lower than the more traditional plans. As long as you use the $ you put into your saving account for qualified medical expenses you can take the $ out without tax consequences. You can get a list of qualified expenses from IRS publication 502. Oh yeah , if you keep putting $ in to your savings account and don't use it (you have to have a qualified high deductible health plan to continue to contribute to your saving account) then it can help with your retirement as well because it can then act as an IRA and have all the privileges of an IRA at retirement. So you can kill 2 birds with 1 stone --health insurance and retirement savings. :D ---FYI ---My wife is an insurance agent -:)
     

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