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What is this plan? Health Savings Account is generally known as HSA. Money can be saved for future medical costs by this type of account. These are part of an HDHP plan & are tax overdue accounts. To have one account you need to have another. The HDHP plan covers serious injuries, illnesses & preventive health care as well & it is a low cost & high deductible health insurance plan. HDHP plans can be either HMOs or PPOs. Both in & out of network providers can be chosen by you. Naturally, network providers are not expensive as in any health plan. Except preventive care there is a deductible for everything which is usually very high, so to keep the premium prices low. There is an attachment of Health Savings Account (which is also known as Health Reimbursement Arrangement) with HDHP plan. Up to a certain amount of your salary can be set aside each pay period with the HSA to go into account. Each year contribution between $3,000 & $5,000 to the plan is allowed by most plans. The amount of money that is being added to the account in the beginning can be re-paid in automatically deducted installments by you. By default, the HDHP/HSA combo can be translated into a de facto health insurance plan of low cost, when a traditional health insurance plan is not chosen. For those who are with overall good health & minimal health care expenses, this is an excellent option. Care of co-pay costs, regular prescription & set aside money, without breaking the bank, for unforeseen health expenses is allowed by this type of plan. The HDHP/ HSA plan may be best for you, if you can't afford a traditional policy & need health coverage now, so talk about setting one up to your employer or insurance agent.
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