What are the tax benefits of high deductible health plan?
The primary tax benefits of an HDHP are largely because of the benefits of having a Health Savings Account (HSA). You can claim a tax deduction for contributions you make that are not pre-tax or made by your employer even if you don’t itemize your deductions on Schedule A.
Is Blue Shield a high deductible health plan?
The Blue Shield high-deductible health plan (HDHP) is administered by Blue Shield of California. With the HDHP, you can receive care from any of the physicians and hospitals in the plan’s network, as well as outside of the network for covered services.
Are all high deductible plans HSA eligible?
As you may know, in order to contribute to a Heath Savings Account (HSA) you need to be in a High Deductible Health Plan (HDHP) and you can’t have other health coverage.
Is a higher deductible better?
In most cases, the higher a plan’s deductible, the lower the premium. When you’re willing to pay more up front when you need care, you save on what you pay each month. The lower a plan’s deductible, the higher the premium.
Is it better to have a high or low medical deductible?
Low-deductible health plan basics An obvious downside to these plans is that if you don’t end up needing more extensive medical care, you’ll have paid a higher monthly premium for nothing. There’s no large out-of-pocket expense to worry about since the deductible is lower.
How does BCBS high deductible work?
With an HDHP, you pay the full cost for services until your annual deductible is met for services other than in-network preventive care services, which are covered 100\%. After you meet your deductible you may only be responsible for a small percentage of the costs called a co-insurance.
How do I know if I have a high deductible health plan?
If you have an HSA account, then you have a high deductible health plan. A high deductible health plan (HDHP) is health insurance with a lower premium and a higher deductible than a traditional health plan. Having an HDHP is one of the requirements for a health savings account (HSA).