What Are Some Affordable Healthcare Options?
Q: I’m looking for a new, affordable health care plan. What are my options?
A: With prices spiking on just about everything right now, many Americans are finding it challenging to get a decent health insurance plan they can afford. Fortunately, there are ways to save on health care costs so you can have adequate coverage without feeling the pinch in your wallet. There are also several types of unconventional plans that may cover you at an affordable price.
Let’s take a look at some of those options.
Health Savings Account (HSA)
While an HSA doesn’t provide health care coverage, it can help bring affordability to pricey plans. An HSA is a type of savings account that allows the account holder to set aside money on a pre-tax basis to pay for qualified medical expenses, such as deductibles, copayments, coinsurance and more. By using pre-tax money, the account holder can lower overall health care costs.
It’s important to note though, that HSA funds generally cannot be used to pay premiums. In addition, account holders can only make contributions to an HSA if they have a High Deductible Health Plan (HDHP) that only covers preventive services before the deductible. There are also limits on the contributions an account holder can make to an HSA each calendar year.
Health share plans
Health share plans are run by a not-for-profit religious organization, and are jointly owned by members who share expenses for their collective medical needs. It’s possible for a family of four to find a health share plan for just a few hundred dollars a month. However, deductibles can be quite high. Finally, many health share plans only provide coverage after the cooperative “shares” the cost of a member’s medical bill or medication.
Catastrophic health insurance
For healthy young adults who only want coverage in case of a medical emergency, a catastrophic health plan can be the perfect solution. These plans feature inexpensive monthly premiums, but have very high deductibles. Policyholders must cover all their own health care costs until they meet that deductible.
Catastrophic health plans are only available to people under age 30, or older adults who qualify for an ACA hardship exemption.