Consumer Driven Health Insurance – Tips For Saving Money


Consumer driven health insurance has become popular with individuals, families, and the self employed. Because consumer driven health insurance plans are much less expensive, and they offer tax benefits, they offer an effective solution to rising health insurance costs. Here’s more about how consumer driven plans can help you or your family:

Inexpensive Health Premiums

Because the health insurance component of this solution primarily offers major medical coverage, with a higher deductible than many plans, the premium is much lower than with traditional heal plans. The most popular health plan used is called a “qualified high deductible health plan.”. Qualified means that the plan is eligible to be used with a health savings account. High deductible just means that it covers expenses after a high deductible. Moving from a traditional health insurance plan to a high deductible health plan can save you hundreds, if not thousands of dollars, each year.

Significant Tax Benefits

Once you have purchased a qualified high deductible health plan, you are eligible to open a health savings account, or HSA. This is simply a financial (checking) account that allows you to deposit money into it pre-tax. When you have medical, dental, or vision expenses throughout the year, you can use the balance in your health savings account to pay for then tax free. It’s a huge added bonus to the low premium that comes along with your high deductible plan.

Easy to Use

Once you have your health plan in place, you will receive your insurance card. Just like with a traditional health plan, you show your card each time you go to the doctor, pharmacy, or hospital. You pay the charges with the debit card from your HSA. The amount you pay gets credited to your deductible in case you meet your high deductible and need major medical coverage that year. Otherwise, you simply pocket the premium savings and enjoy the tax benefits each year.

It’s a great solution to rising health plan costs, especially if you or your family don’t have many medical expenses.


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