Keeping Your Health Insurance Premiums Low

Keeping Your Health Insurance Premiums Low

Health Savings Accounts offer tax deductions for medical expenses, and the opportunity to set up an additional retirement account. But regardless of any other positive benefit of HSAs, lower premiums are the primary reason that thousands of Americans have chosen Health Savings Accounts as the best way to protect their family’s health and assets. Here are some key suggestions on how to keep your health insurance premiums low.
1. Choose an HSA-qualified plan for lower rate increases.
Average group health insurance premiums rose by 9.6% last year and rose over 10% for each of the previous six years. Individual plans went up even more. Yet it is expected most HSA plans will experience much lower rate increases. A very large study was recently published showing that rate increases over the past year for consumer-driven plans such as HSA plans was only 3.4%. Blue Cross of Minnesota has reported that its HSA customers spent 8% less than their traditional insurance clients. Humana has reported claims’ costs of 4.9% for consumer-driven plans, versus a 19.2% increase in claims for other plans. In fact, average HSA premiums for individuals have actually dropped 19.5% over the last two years.

The reason these plans have lower rate increases is that people who have HSA-qualifying high-deductible health plans are likely to pay closer attention to costs, and take better care of their health. For instance, an HSA owner offered a statin drug to lower