A“Reducing Deductible” For Health Insurance, Too?

     Ben Franklin reminds us that “A penny saved, is a penny earned”.  Who doesn’t like to save money?  For many struggling Americans, this has become more necessary today, than in the recent past.   We now have an opportunity to save even more of our hard-earned cash by paying lower health insurance premiums.  This is an ideal situation for healthy folks who are seldom hospitalized!

     There is now affordable health insurance which rewards its clients for being healthy.  Similar to the auto insurance which has the “vanishing deductible”, there is now health insurance which will do the same, with a reducing deductible.  Although this innovation is offered by a different company, the basic idea is very much the same.

     If the insured does not meet their calendar year deductible, the following year’s plan deductible is reduced by 20%.  Likewise, in the second (2nd.) year, if that deductible is not met again, then the deductible drops by another 20%, resulting in a 40% lower amount than when the plan was first purchased.  Finally, if this continues for a third (3rd.) year, the original deductible will be lowered by a total of 50%.   This is the maximum reduction which one can attain.

     With health insurance, a higher deductible will result in an inexpensive monthly cost.  So in purchasing a high-deductible health plan (HDHP) and not reaching your deductible limit three years in a row, you will be rewarded by having your original deductible cut in half!  This means you are able to buy more affordable insurance, and still experience a lowered deductible as a result of living a healthy lifestyle.  “Being healthy really can save you money”!

     These “reducing deductible” insurance plans are available with traditional PPO Health plans and also with the increasingly popular HSA-qualified HDHP’s (High Deductible Health Plans).  As I mentioned in a previous article, there are also tax-savings advantages associated with HSA’s.  You can deposit the money you save on premiums, and “earmark” it for future out-of-pocket medical expenses.  (There are yearly funding limits on these HSA accounts.)  This savings will build until it is needed to help pay for these medically-related personal expenses!  Click on this link: http://search.irs.gov/web/query.html?col=allirs&charset=utf-8&qp=&qs=-Wct%3A%22Internal+Revenue+Manual%22&qc=&qm=&rf=&oq=&qt=hsa+guidelines for government rules and guidelines concerning lowering your taxable income with an HSA.  Then enter the search words “HSA guidelines” in the search box at the upper right corner of the page.  Most banks will have an employee you specializes in opening new HSA accounts also. 

     Contact a licensed health insurance agent for full details on applying for one of these “reducing  deductible” health insurance options.   AustinHealthPlans can save you money now.  Contact us at (512) 535-3556 or just send an e-mail to: tom@austinhealthplans.com .  We provide friendly personalized service to all Texas residents, no matter where you call home!   Thanks for reading our Blog and we appreciate your sharing this information with your neighbors and friends.  Adios!


About tcdiehl

I have been an independent insurance agent licensed in Texas since 2003. My focus is providing affordable insurance coverage through multiple reputable insurance providers for individuals, families, and small groups. I can also help with Medicare insurance needs. Allow me to connect you with the appropriate health, life, disability, long term care, and/or dental plan(s) based on your health, personal, and financial needs. Call me at (512) 535-3556, E-mail: tom@austinhealthplans.com.
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