Affordable Boomer Health insurance
If you are between about 50 years old and 64 years old, you may find that it is much tougher to find affordable health insurance premiums that it used to be. There a couple of reasons that this baby boomer group gets particularly hard hit by private insurance premiums.
Health insurance rates are usually set by age bands. At about age 50, these bands start really increasing over the rates a younger adult may find.
At about age 50, we all start to have more issues with some of the problems of middle age. Health issues like adult onset diabetes, high blood pressure, etc. become more common. Some health conditions may cause insurers to charge us more, and some may even cause individual insurers to decline us. so
At age 65, most Americans qualify for Medicare. This is the government health insurance program for seniors and disabled people. While it does not cover everything, it can help. On the other hand, most Americans under 65 do not qualify for Medicare.
So given that is is harder for people over 50, and younger than 65, to find affordable medical insurance, how can we resolve this problem?
High Deductible Health Plans Plus Health Savings Accounts
One solution that may solve this problem, plus have extra benefits, is to consider a higher deductible major medical insurance policy with an HSA (health savings account). There are several things to consider before you discount this idea.
A higher deductible health insurance policy will cost less than the same policy with a lower deductible..
Some insurers relax underwriting rules for higher deductible policies too.
Even though you may have more out of pocket health costs to pay, the lower premium may offset this somewhat.
With network medical plans, like PPO health plans, you will still get network discounts when you do need to pay for medical services. Health plan network prices are usually a lot cheaper than non-discounted prices.
The HSA is a savings account that can contribute too. Within limits, these contributions will be tax deductible. This can help you save money on your income taxes too.
Any money in the HSA that is unused will keep rolling over from year to year. At retirement, it can be withdrawn as retirement savings.
Some HSA savings accounts earn competitive interest rates too. Not only are you saving money, your account can actually grow.
The money in the account can be used to pay for a variety of medical services, and this includes paying for the major medical deductible It also includes other medical services that are not covered by the major medical plan, like dental care or supplements.
HSA health plans do not work for everybody. They tend to work out best for people who are disciplined savers who want to control their health costs. If no contributions are made the saving account, it will not be a benefit to anybody. However, if you can contribute to the HSA account, this may be the best way to save money in the long run.
If you are a baby boomer, looking for private health insurance, consider the advantages and disadvantages of HSA health plans.