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Hi, I'm here to help you learn about your high deductible health plan. Over the next few minutes, you'll discover what it is, and how it works. 

With a high-deductible health plan, you often pay a lower premium, in return for having a higher deductible.

The term deductible simply means the amount you need to pay out of your own pocket for medical expenses before your insurance kicks in.

Just so you know, most medical services, like doctor visits, MRIs, and most prescriptions count towards your deductible.

Another thing to keep in mind: you pay nothing for preventative care like annual checkups.

Okay, let me give you an example.

Say you go for a jog, and you trip.

It happens.

But this time, you break an ankle.

An ambulance ride, surgery, and some physical therapy later, you're feeling better, but you now have a $10,000 hospital bill.

Let's say your deductible is $2,000.

That means you have to pay $2,000 out of your own pocket before your insurance coverage kicks in.

Health plan coverage varies, so be sure to check with your employer about your specific coverage.

Now, I know $2,000 is still a lot of money.

The good news is, having a financial account can help you pay for medical costs like this.

Your high deductible health plan comes with a Health Savings Account, known as an HSA.

An HSA is an account that you can contribute to and withdraw money from, tax free.

It can help you pay your deductible, copayments, and other qualified medical expenses, like eyeglasses and dental work.

You can even take money out to pay for non-medical expenses.

But if you're under 65, you have to pay taxes and a penalty.

With an HSA, you and your employer can contribute tax free.

How much you can contribute is set by the IRS, and they change from year to year.

All that money, including what your employer gives you, is yours.

Even if you switch jobs.

And if your new employer doesn't offer an HSA, you can still keep your account and use it to pay for qualified expenses.

But, you won't be able to put any more money into it.

Don't worry if you have money left over at the end of the year.

It rolls over, year after year after...

Well, you get the picture. 

And because your contributions are tax free, you enjoy tax savings!

So let's say this is your paycheck, every month.

Without an HSA, your entire paycheck is taxed, and $1,000 goes to the government.

But, here's what's great about an HSA.

So you take $200 from each paycheck, and put it into an HSA.

Only $3,800 is taxed, and $950 goes to the government.

For a tax savings of $50 each month.

That's $600 a year you save in taxes.

And, you also put $2,400 into your HSA, that you can use for medical expenses, like that $2,000 deductible.

Better yet, you can even invest that money, grow it tax free, and use it for retirement.

You must meet certain guidelines to qualify for an HSA.

Please check with your employer.

Let's recap:

You often pay a lower premium with a high deductible health plan.

You have to pay your deductible first before your insurance kicks in.

With an HSA account, you enjoy tax advantages because contributions are tax free, investment earnings are tax free, and withdrawals for qualified expenses are tax free.

And remember, check with your employer to see if you qualify.

Hi; I'm here to help you learn about your high-deductible health plan. 

Over the next few minutes, you'll discover what it is and how it works. 

With a high-deductible health plan, you often pay a lower premium in return for having a higher deductible. 

The term deductible simply means the amount you need to pay out of your own pocket for medical expenses before your insurance kicks in. 

Just so you know, most medical services like doctor visits, MRIs, and most prescriptions, count towards your deductible. 

Another thing to keep in mind; you pay nothing for preventive care, like annual check-ups. 

Let me give you an example.

Say you go for a jog and you trip; it happens.

But this time you break an ankle. 

An ambulance ride, surgery, and some physical therapy later, you're feeling better, but you now have a $10,000 hospital bill. 

Let's say your deductible is $2,000. 

That means you have to pay $2,000 out of your own pocket before your insurance coverage kicks in. Health plan coverage varies, so be sure to check with your employer about your specific coverage. 

I know $2,000 is still a lot of money. 

The good news is, having a financial account can help you pay for medical costs like this. Your high-deductible health plan comes with a health reimbursement arrangement, known as an HRA. 

An HRA is an account set up by your employer to help pay for qualified medical, dental, or vision expenses.

It is completely funded by your employer, 100%. 

Your employer decides how much you have to spend and what eligible expenses you can use it for, like your deductible, co-payments, and prescriptions, just to name a few. 

Generally, you can roll over money left in your HRA to the next year. 

But again, that's up to your employer, so make sure to check with them on the specifics of your HRA. 

To get an idea of how an HRA works, let's use the broken ankle example again.

Remember, you have to pay the deductible first, which in our example is $2,000. That's $2,000 out of your own pocket before your insurance kicks in. 

But what if you had an employer-sponsored HRA with $1,000 in it? $2,000 minus $1,000 from your HRA means you only have to pay $1,000 out of your own pocket to pay your remaining deductible.

Feeling a little better? Great.

HRAs can vary, so be sure to check with your employer about your specific account.

Okay, let's recap. 

You often pay a lower premium with a high-deductible health plan.

You have to pay your deductible first before your insurance kicks in.

An HRA can help cover some of your medical expenses, like your deductible.