Search
Advertisement
| Digg | Facebook | Stumble It! | Delicious del.icio.us | Fark
E-mail | Print
Aug 6, 2008 3:38 pm US/Pacific

Saving Money On Health Care

QUESTION:  What kind of things can I do to cut down on my healthcare costs?

ANSWER: The world of health care plans is vast and confusing.  However, with all insurance, the greater the liability that you carry will reduce your insurance premiums, and the greater the liability borne by the insurance company will increase your premiums.  One option that is gaining momentum is the Health Savings Account (HSA) in conjunction with a high deductible health care plan.  The HSA acts like an "IRA" for health care, in that you receive a tax deduction for the contributions made to a HSA plan and any distributions to pay for health care related costs are tax free.  To use an HSA, the health insurance plan you have must be deemed a "high deductible" plan.  Depending on whether you are married or single, a high deductible plan has a lower monthly premium than a traditional health care plan, as you are responsible for covering the amount of your deductible before the insurance company pays anything.  The deductible usually starts at a minimum of $1,100 per year for an individual and $2,200 per year for a family.  You can increase these amounts if you wish to pay a lower monthly premium.  I believe this is the direction that our health care system will gravitate towards over the coming years. 
____________________

Money Matters is provided by:

David Schauer, CFA, MSFA, CFP®
Financial Planner
Hanson McClain
E-mail questions to moneymatters@kovr.com

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

From Our Partners

© MMVIII Sacramento Television Stations Inc. All rights reserved.