If you are considering a long-term Colorado health insurance plan that is purchased outside of an employer’s group rates, then you may not be thrilled about the cost of carrying an PPO card in your wallet, especially as health care costs continue to rise.  However, there is one bright spot.  Based on customer demand, insurers in the state have come up with some new ways to help individual health plan buyers save.  Known as both an ‘HSA” and a “QHDHP”, these more sensible and affordable health plans make it easy for self-employed individuals to stay insured.

Despite the rising popularity of these high-deductible health plans, which are backed by a tax-deferred, interest-earning account, many Coloradoans still don’t understand how they work.  That’s why one Colorado health insurance broker took the time to spell it out in his recent blog entitled, “The Best Way to Buy Individual Colorado Health Insurance.”

Health Savings Accounts (HSAs)

In Colorado, it is easy to find a health insurance provider who offers HSA plans, but keep in mind that not all plans – provider networks – are going to be right for everyone.  Basically, an HSA backed health insurance plan uses the tax-deferred contributions of health plan members to fund their own deductibles, co-insurance and other qualified healthcare expenses. 

Because the bulk of the insurance benefits won’t kick in until an annual deductible is satisfied, it is incumbent upon the member to have the funds to pay for expenses that are incurred before then.  However, thanks to the recent Health Care Reform laws, every Colorado health insurance plan must include coverage for preventive care, including an annual physical, routine blood work, and an OB/Gyn exam. 

Members contribute money to this fund, which is held in their own name, and comes with its own debit card.  Because the money is tax-deferred, it can be written off at the end of the year as a tax-deductible medical expense.  The money in this account is used to pay for medical bills and other health related expenses before the deductible is met.

A QHDHP is a Qualified High Deductible Health Plan, which is the framework upon which an HSA plan is built.  Not every QHDHP has an HSA and not every HSA is attached to QHDHP.  This is not as confusing as it sounds.  To learn more about buying affordable Colorado health insurance plans, Read “The Best Way to Buy Individual Colorado Health Insurance” or contact Anderson Insurance Services for a free quote.