Bigger co-pays to see a physician may be discouraging people from making doctor appointments.  Even among those with health insurance benefits, covered members are looking for less health care.  Health insurers just continue on to pocket the premiums whether or not they spend much on doctor and hospital care for members.

With the Affordable Care Act, insurers are being required to spend at least 80 percent of the premiums collected on health care for the members paying those premiums.  That could take a bite out of record profits, but insurance providers also have another advantage.

High-deductible health insurance plans have been seen to discourage health care usage. To reduce the risk of people putting off seeing a doctor until their health deteriorates, the Affordable Care Act has also taken a lot of the risk out of plans with high deductibles.

High-deductible Health Insurance Plans Completely Cover Preventive Care

As premiums rose, both companies providing workers health insurance and people shopping for their own health insurance switched to high-deductible health insurance plans to keep their insurance premiums low.  Before the Affordable Care Act, policyholders were hesitant to spend from $1,000 to $10,000 to meet the deductible.  That meant not seeing a doctor for far too many people.

Health care reform doesn’t change plans previously purchased, but it does mandate that any plan you buy after health care reform became law offer recommended preventive care with no out-of-pocket costs.  That means the plan’s deductible does not apply to yearly checkups, many vaccinations, and the most common screening procedures to detect life-threatening problems like cancer, diabetes or cardiovascular disease.  

With 100-percent preventive care coverage, high-deductible health insurance plans have become a legitimate way to invest in your own future rather than in an insurer’s profit margin.  With preventive care covered, you’re less likely to meet a plan’s deductible.  As long as your health is relatively good, you can take on a little more risk by trading low premiums for a high deductible.

An HSA Is An Investment In Your Future

To invest in your future, look at the insurance policies that enable you to open a Health Savings Account (HSA). With one of these tax-advantaged accounts, you can invest what you save on premiums in bonds, mutual funds, stocks or an interest-earning savings account.  No matter how much your Health Savings Account earns, the balance will roll over from year to year and you won’t have to pay taxes on the growth.  

At any time before or after retirement, you can withdraw HSA dollars to see a dentist, get a medical massage, or buy any number of health-related services without paying taxes on the withdrawal.  You can spend your HSA dollars for your spouse’s or partner’s or dependent’s health care, too, even if they are not covered by your policy.  Just be careful to only use HSA funds for legally-eligible health-related products and services, or you’ll have to pay a 20% penalty.

Every year that you contribute to your HSA, though there is no minimum requirement to do so, you can reduce your taxable income by the amount you deposit before April 15.  Add what you save in taxes and on premiums to your tax-free interest, and you’ll see a true investment in your future.  HSA health plans are a way to keep your money in your account, rather than an insurance company’s account.