Health insurance premiums are going up again

Nationally, cost increases for employers who offer health insurance plans will average 8 to 10 percent. In the Kansas City area, employers’ 2009 costs are going up as much as nearly 30 percent.

We are heading into health insurance renewal time for many businesses.  The Kansas City Star published an article this week describing the pain being felt by local businesses.  I’m not surprised that local brokers are saying many of their clients are contemplating dropping insurance altogether due to these increases. 

Benefits enrollment time brings higher costs for health plans at work

When businesses re-allocate their healthcare dollars to purchase an HSA qualified High Deductible Health Plan (HDHP) which and put the premium savings into the employee’s Health Savings Accounts (HSA), there is a built-in shielding of the huge premium increases usually associated with health insurance renewals.

Over 95% of my clients elect HSA qualified plans.

Maybe that’s why my HSA clients don’t drop their health plans!

“The Right Way to HSA”  Seminars are being held this week Thursday October 2nd in Overland Park at 7pm and Friday October 3rd in St. Joseph at 12 noon. If you would like to see why over 6 million Americans have already made the move to HSA qualified insurance plans, please RSVP by visiting our website www.missionHSA.com or by calling our office at 913-432-2732 ext. 110.

Keep in mind that moving your January renewal up to December 1st can allow HSA contributions to be deducted from your 2008 taxes!

Good Fortune and Self-discipline Help Fund Health Savings Accounts

The Kansas City Star describes 3 people that are having good experiences with their Health Savings Accounts (HSAs):

Read the Article – “Good Fortune and Self-discipline Help Fund Health Savings Accounts”

There are 2 things that still need to be addressed.  Let’s call them “pet peeves” that make some people nervous about moving to an HSA…

1. PPO or High Deductible Health Plan

I do not know of any HSA qualified plan available that is not a PPO plan.  Every major insurance carrier now offers an HSA qualified plan and therefore their existing PPO networks apply.  Many consumers are under the impression that if they switch to an HSA qualified plan, they would no longer get the PPO discounting.  This can amount to huge savings.

2. HSAs work only if you are healthy

Since most HSA qualified plans switch to 100% after the deductible is satisfied, the deductible is the full “out-of-pocket maximum”.  Traditional co-pay plans will often have co-insurance (80% or 50%) after meeting the deductible and co-pays on top of that.  The worst-case scenario can actually cost less for HSA plans than co-pay plans when comparing “out-of-pocket maximums”.

Lastly, despite the resemblence in the above photos, our HSA card holder is a lot easier on the eyes…No offense John.

Scott