Everything You Need To Know About Affordable Healthcare Plans for 2021

HSA health insurance plans and Health Sharing plans are the best alternatives for those who don’t qualify for typical insurance options. Read on as we describe what HSA plans are, the benefits that come with health sharing plans, and everything else you need to know about affordable healthcare plans for 2021.

Healthcare Plans For 2021 - Here’s What You Need To Know

This guide will define HSA plans, give you the pros and cons, discuss health sharing plans and how they work, and what your next steps are to get healthcare plans for 2021 that won’t break the bank.

What Is An HSA Plan?

HSAs (Health Savings Accounts) are an alternative to more traditional insurance plans. They are specifically designed to put tax-exempt funds into a health savings account to use towards medical expenses.

Here are a few facts to know about HSA Plans:

● The average unsubsidized monthly family premium is $1100 - $2400

● HSA allow you to contribute up to $7200 per year to tax-deductible health savings account

● All coverage is mandated and approved under the Affordable Care Act (ACA)

● Individual and family HSA plans cover all 10 “essential health benefits,” including mental health and substance abuse, prescription drugs, preventive services, and maternity coverage

● Anyone is eligible, regardless of pre-existing conditions and includes unlimited lifetime benefits

● Individual HSA plans are approved at the federal and state level and are backed by financially-rated insurance companies

● Most HSA plans have limited doctor and hospital networks

● You can only enroll during Open Enrollment, November 1st through December 15 in most areas, unless you qualify for a special enrollment period

At HSA For America, we believe the best person to decide how to spend your health-care dollars is you. HSA Plans put you first because they allow you to shop around for the best value, and health care providers will often charge lower rates to attract potential patients.

HSA funds can also cover alternative, holistic, and preventive treatments, which encourages innovation and investment in areas that traditional healthcare coverage fails to find solutions. We think that because of the preventive expenses that are eligible for coverage through HSA, you’ll be able to take a much more proactive approach to your healthcare. It also means you get to keep the money you don’t use.

The Benefits Of HSA Insurance Plans

Let’s talk about some of the benefits that come with HSA healthcare plans for 2021, starting with how HSA insurance works. A Health Savings Account (HSA), like we mentioned above, is a tax-favored savings account combined with insurance or a healthcare plan. To qualify, you must have a high-deductible health insurance plan that qualifies to be partnered with an HSA. The money in this savings account can help you pay the deductible. As the deductible limit is reached, the insurance starts paying. Any money left in the savings account has the potential to earn interest and is yours to keep.

HSAs allow you to avoid federal income tax by allowing you to put aside up to $7,200 for families. You’ll receive a federal income tax deduction for money deposited, even if you take the standard deduction and don’t choose to itemize. The tax deduction is available to everyone and has no limitations on the account. A one-time roll-over from your IRA (Individual Retirement Account) or FSA (Flexible Spending Account) is even allowed!

HSA insurance plans allow you to spend the money in your account on qualified medical expenses, tax-free, even if you’ve already received a tax deduction. This also includes any fees racked up from going to the doctor, fulfilling prescription drugs, and paying towards your deductible. As soon as your deductible is met, the health insurance covers your medical expenses. See your specific policy for more details.

On top of all of the benefits we just mentioned, you can also use the money in your HSA to cover other expenses that would not normally be covered by a health insurance policy. Also, your HSA health plans account can be used to pay these expenses for any spouse or dependent member of the family, including same sex and domestic partners, even if they are not covered under the insurance policy.

What Is A Health Sharing Plan?

Health sharing plans, in contrast to most HSAs, are not insurance, but are known as a more affordable way to make sure your family is protected when unexpected medical expenses arise. The typical average family monthly contribution ranges from $480 to $760. This is not health insurance, but rather a group of people in the same situation as you sharing medical expenses.

Members of most health sharing plans are exempt from having to carry ACA health insurance and exempt from ACA tax penalties. Though some healthcare programs do cover preventive services, they will usually not cover pre-existing conditions for the first couple of years.

One of the major benefits is that you can go to almost any doctor or hospital and you can enroll anytime. Costs for healthcare plans are typically less than half the cost of health insurance. They are considerably more affordable than other healthcare plans for 2021 because they don’t have premiums, but instead have “contribution amounts.”

Health care sharing programs, also called Medical Sharing plans, typically limit how much they will share on pre-existing conditions, but most people joining these programs are typically much healthier than those purchasing health insurance.

It’s important to note that these sharing programs are not required to cover preventative care, birth control, or other of the other “essential benefits'' that are required under the Affordable Care Act. Because these sharing programs are offered by faith-based groups, they’ll likely have additional rules and restrictions, like not accepting smokers or not sharing expenses for drug rehabilitation. Some even require regular church attendance. Almost every sharing program requires you to sign a statement of beliefs, though not every plan is religious.

Make sure you read all the details thoroughly, so that you understand any restrictions on the program you choose.

Let HSA For America Help You Today!

Hopefully, our guide has given you the information you need for affordable healthcare plans for 2021. However, it’s completely natural for you to have questions and need specific answers for your unique situation. Schedule a free consultation with us today and we’ll give you a free quote. We would be happy to answer any and all questions you have about HSA and Health Share plans, and get you a plan that works for you.