Will we still be covered?
Posted by Michele W. on Tue, Oct 20, 2009 @ 03:11 PM
The kids are grown and you and your spouse are finally getting the “just 15 minutes of quiet” you’ve been asking for all those years. Now what? It may be that dream you had of starting your own small business together. It’s probably safe to say your soon-to-be old employer isn’t going to let you stay on their group plan. Not a problem. There are many plans available in the individual health insurance market that may meet your needs.
You no longer need comprehensive coverage for your children but you may still want it for yourself and your spouse. Many plans have coverage that includes preventive annual screenings, well visits and prescription drugs. Many plans also include money-saving benefits like non-tobacco rates and/or preferred rates. A healthy lifestyle program may also be a plan feature that provides additional savings, such as cash back on annual gym memberships and fitness classes.
Another type of coverage that may fulfill your needs is a HSA program, which combines a qualified high-deductible insurance plan with a health savings account component. Created under federal legislation, HSAs offer a way to purchase a health insurance policy and save money tax-free. Contributions to your HSA account are tax deductible up to the lesser of 100% of your deductible or to the IRS allowed maximums. The withdrawals from your HSA account are tax-free when used to pay for qualified medical expenses. Your HSA money earns interest tax deferred and rolls over year after year. What you don’t spend on health care continues to grow as tax deferred savings until you reach age 65 at which point you can use the savings tax-free for medical expenses not covered by Medicare or for non-qualified expenses and only receive normal taxation.
With all the options available in today’s consumer market, you can venture ahead with your dreams of your own business without the worry of “will we still be covered?”