An out-of-pocket expense is any cost you have to pay yourself when receiving medical care. This includes your deductible, co-payments, and coinsurance. Most Michigan health insurance policies have an annual maximum out-of-pocket expense. Once you’ve reached your maximum out of pocket in a calendar year, your insurance company will pay 100% of the rest of your covered medical costs.

Originally posted 2009-07-31 18:42:02. Republished by Blog Post Promoter

Coinsurance is an amount of the cost of a Michigan medical service that you are responsible for paying. Unlike a co-payment, which is a fixed-dollar amount, coinsurance is expressed as a percentage. For example, many insurance plans have 20% coinsurance of the next 10,000 after deductible for hospital costs, meaning you pay 20% of the total cost of a trip to the hospital.

Originally posted 2009-07-31 18:38:42. Republished by Blog Post Promoter

Michigan Health Savings Accounts are designed for eligible Michigan residents to take control of their own health care costs. Instead of paying the insurance company x amount of dollars to dictate when and how you use your health coverage. You get a lower premium combined with a higher deductible and more control.

A HSA or Michigan Health Savings account isn’t actually an insurance plan. It’s like the name suggests. It’s a savings account. In order to have one, it needs to be combined with a high deductible health insurance plan. Typically starting at $2500 dollars.

Unlike an FSA or Flexible Spending account where if you don’t use it, you lose it. With an HSA if you don’t spend the money in a calender year, it rolls over year to year.

Lets take an example. Lets assume that you have a 80/20 health insurance plan with a $500 deductible and compare it to a $2500 deductible plan with 100% coverage after the deductible.

While this is very basic, you should get the idea.  Your overall financial exposure is greater on the plan that you may have believed was the better deal because of the deductible.

It’s very important to understand what coinsurance is and to look at you maximum exposure or out of pocket expense, not just the deductible.

Understandable that it’s hard to convince yourself that with the state of Michigan’s economy that you can come up with $2500.  However if you were to take the savings in monthly premium and add them to your health savings account you would be nearly there after 12 months.  Plus you get the added benefit of being able to use tax free dollars for healthcare. Bonus!  This includes dental, vision, over the counter medication etc.  Be sure to take advantage of HSA contribution limits as well.

You can even have an HSA in Michigan with no job.  As long as it is combined with a qualified high deductible plan.  There a lots of Michigan banks that offer HSA’s.  If your aren’t sure if your bank or credit union does, be sure to contact them to see if they offer one.  Your insurance company may offer one as well.  Although if you can have your money with a local Michigan bank, it never hurts.

If you have questions or need a quote on Michigan Health Savings Account quote, please contact one of our broker.  We would be happy to answer any questions you may have.

Related Posts:

HSA Prior Year Catch up Contributions

Health Savings Accounts vs. Flexible Spending Accounts

Michigan 2010 HSA Contribution Limits

What is a Health Savings Account

Health Savings Accounts

Originally posted 2010-04-17 13:12:10. Republished by Blog Post Promoter

Frequently Asked Questions

If you have a health insurance plan that states office visit copay: 20% after deductible, what is the cost of your office visit?

Great question. If your plan does not include office visits prior to the deductible, you are responsible for the full cost of the office visit. That is, until you satisfy the deductible.

Once you satisfy your deductible you would be responsible for 20% of the cost of the office visit.

Example:

• You have satisfied your deductible
• Doctors Office charges you $100 for an office visit
• The insurance company would pay $80 dollars towards the office visit
• You would be responsible for the remaining $20 dollars.

What is a premium?

What is a deductible?

What is a co-payment?

What is coinsurance?

What’s an out-of-pocket expense?

What is managed care?

What is a Health Savings Account?