The High Deductible Healthy NY Health Insurance Plan
As of the beginning of 2007, the Healthy New York insurance plan began offering their version of a high deductible health plan (HDHP). This plan requires that most medical expenses are paid by the enrollee up to a certain figure prior to coverage. These plans contain an annual deductible that is determined by income and family size. A benefit for the high deductible health plan is that the costs of monthly premiums are lower than the monthly cost for the original Healthy NY plan.
The high deductible health plan also requires enrollees set up a health savings account, which was established with the purpose of providing enrollees the opportunity to create a tax deductible savings account, which can be used to finance medical expenses and deductibles. A health savings account (HSA) pays for deductibles as well as any other expenses encountered with co-payments or prescription drugs. The enrollee is only allowed to deposit a little over $2,800 to the account annually according to Federal provisions if they have single coverage.
Family coverage allows a little over $5,600 to be deposited annually due to higher expenses. The amount of money that is chosen to deposit into the HSA account can be done at the speed and amount of convenience for the enrollee. This money is tax-deductible and earns tax-free compound interest as well, assuming that the money is intended to be used towards medical fees. A health savings account can be opened with any traditional bank or insurance agency, though fees may apply.