eFLHealthinsurance Shows How to Maximum Savings from Florida Health Insurance via HRA/HSA Options

Dec. 13, 2011 - PRLog -- A new survey from the benefits consulting company Mercer points out that employees will be spending more of their paycheck for Florida health insurance next year.  The cost of group health insurance for Florida is predicted to increase by eight percent in 2012. Many of the more than 100 Florida businesses participating in the
Mercer survey have plans to offer coverage with higher deductible requirements next year. With the growing move to increase out-of-pocket costs, the need to utilize potential savings is escalating. eFLHealthinsurance’s analysis has revealed how to use high-deductible plans to generate savings to balance increasing health care costs.

Certain high-deductible health plans can be combined with tax-advantaged accounts that allow tax-free withdrawals to pay for qualified health care procedures and products. These policies should refer to “IRC Section 223” or state “Qualifying High Deductible Health Plan” on the policy’s declaration page.

This form of Health Savings Account (HSA) plan became available in 2004. Compared to the more traditional forms of coverage, HSA plans have lower premiums and fewer rate hikes. For example, a traditional $500-deductible plan that covers 80 percent of medical bills after the policyholder spends enough to meet the deductible costs twice as much as a HSA-qualified $2,500-deductible health plan. In exchange for the higher deductible, the HSA plan covers 100 percent of medical bills after the deductible has been met for around $1,837 less than the non-HSA plan per year.

The savings for family coverage can be greater. Family plan premiums for a $500 per-person deductible plan can cost $7,000 more per year than a $6,000 per-family deductible HSA plan. In all but a handful of states that sought waivers to delay complying with heath care reform, preventive health care is exempt from the requirement to meet the deductible. For services through in-network providers, policyholders have coverage without co-pay or co-insurance for preventive care for all age groups.

Employers are finding that they can save enough on HSA plan premiums to fund Health Savings Accounts for employees so they can withdraw from their HSA to pay for health care not covered by insurance. Such a HSA remains the property of the employee for life, so these accounts double as a form of retirement savings. Health Savings Accounts provide tax-free earnings and tax deductions in the same manner as Individual Retirement Accounts.

HSA plans are also available to the self-employed, who can generate additional savings by having their business fund their HSA. Under Section 105 of the U.S. Tax Code, a Health Reimbursement Arrangement (HRA) can increase savings on taxes. According to the president of eFLHealthinsurance Wiley Long, “Health Savings Accounts are allowed with a HRA as long as the HRA does not reimburse expenses that would otherwise go toward the deductible of the HSA-qualified health insurance.”

The deadline to establish a HRA for 2012 is December 31, 2011. Once that is in place, the business can reimburse for dental, vision, and other expenses. eFLHealthinsurance provides online resources for establishing a HRA at http://www.eFLHealthinsurance.com/florida-hra.htm.  Educational resources regarding Health Savings Accounts are also available at http://www.eFLHealthinsurance.com/health-savings-accounts.... Additional resources to help temper the rising cost of Florida health insurance in the face of slow economic growth may also be found at http://eFLHealthinsurance.com/The-eFLHealthinsurance-Comp....

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About eFLHealthinsurance:

eFLHealthinsurance has become a leader in providing educational resources that enable Florida families, individuals and small businesses to keep their health care costs low. Online information explaining how to find coverage to fit individual needs is available at http://www.eFLHealthinsurance.com/how-to-guide.htm and http://www.eFLHealthinsurance.com/health-savings-accounts-in-florida.php.

Florida residents seeking health insurance options in the individual market may use eFLHealthinsurance’s online resources or schedule consultations with professionals to compare coverage options to personal health care needs by calling 1-866-585-7661 between 9 AM and 11 PM Eastern.

eFLHealthinsurance also provides extensive resources that can lower health care costs that are not covered by insurance at http://www.eFLHealthinsurance.com/additional-benefits.htm.