There’s a rise in the number of people choosing the more affordable health insurance premiums that come with a high-deductible health plan. But saving on monthly premiums often means more cost to meet a deductible before insurance kicks in. Both an HSA and a fixed indemnity insurance plan can help you deal with the increased expenses that come with this type of high-deductible medical insurance plan.F16
The HSA lets you carve out some of your income before taxes and put it aside as a safety net of your own money for these medical costs. As an extra incentive, if your HSA is through employment-based health insurance, employers often match some of the funds you save.
The fixed indemnity plan works by paying set benefit amounts for covered medical expenses, some of the most common ones you’re likely to face. You or the provider you want receives the set benefit after you submit a claim for the covered expense. You don’t have to pay a copay, coinsurance, or deductible out of your own pocket to receive the money from a fixed indemnity insurance plan.