Streetsmart insurance Blog
A high-deductible health insurance plan is a common alternative for businesses that aims to minimize its expenditures. To determine if a high-deductible plan is both beneficial and suitable for your business, you have to know more about the characteristic of this policy, and how it differs from a traditional health insurance
What is a high-deductible health insurance plan?
It’s a health insurance plan for your company that provides coverage for a smaller premium. This plan doesn’t reduce the amount covered by your insurer. However, you would need to pay a higher deductible every time you make a claim. According to IRS guidelines, for 2018, high-deductible plans have deductibles of at least $1,350 for an individual or $2,700 for a family, and the total yearly out of pocket expenses must not exceed $6,650 for an individual or $13,300 for a family.
What are the perks?
A high deductible insurance plan is cheaper for both the employer and the employee. Employees with a high deductible insurance plan will also be eligible for a health savings account. Any deposit made to this account will be tax free, and it can result in tax savings for both the employee and the company. For 2018 the limit of contribution you can make to this savings account is $3,450 for an individual or $6,900 for a family.
What are the drawbacks?
If your employees have frequent medical needs or a long-term health condition, they may have to pay a large deductible. A higher deductible may also prevent your employees from having health check-ups, leading to chronic diseases being detected late.
Is it suitable for my company?
This plan is widely used by companies of all sizes. However, whether it’s suitable or not depends on the healthcare needs of your employees. Businesses with relatively healthy employees that don’t work in hazardous environments are suitable for this plan.
How can my business acquire this plan?
It is as easy as getting any other health insurance plan for your company. If your company has a different plan beforehand, switching will be simple and easy. In fact, you can provide multiple health insurance options for your employees.
After having general knowledge about what a high-deductible insurance plan offers, you need to assess both the needs of your company and your employees to see if this plan would suit both parties. Feel free to consult us so we can help you decide what your business requires the most.
At Streetsmart Insurance, we work hard in making sure that our clients are well-protected with policies that they can afford. To learn more about how we can help you, please contact our agency at (732) 462-8343 or Click Here to request a free quote.