High Deductible Health Savings Plans

High deductible health savings plans are health insurance plans that put control over how much is spent for healthcare into you hands. Most employers will contribute a set amount towards your deductible per year. Here's what you need to know about this healthcare option.

The Math

If your deductible is $1,500 and your employer contributes $1,000 per year, you would have to pay $500 out-of-pocket if your medical costs went over $1,000 that year. If you didn't use any of the employer's contribution, the next year you would get another $1,000. So you would now have $2,000 available to use towards your $1,500 deductible. You would not have to pay anything out-of-pocket.

Control

You decide if you want to get certain tests done. Some doctors will run extra tests to double check a diagnosis. If the test isn't necessary, don't run it. The cost of every test goes against your deductible.

Concerns

If you go over the amount your employer contributes, you will have to pay out-of-pocket until your deductible is met. Once the deductible is met, most plans will cover up to 90 percent of costs.

Benefits

If you don't have any major health problems, you won't pay anything out-of-pocket for prescriptions or doctors' appointments. You can roll the amount your work contributes every year. By rolling your money, if you do have a major medical problem, you will have the money saved up to cover it.

Plan Ahead

Plan your medical needs for the year. If you can wait until January for minor surgery, you will be able to use the funds your employer contributes every year.