What's so good about Health Savings Account Compatible Health Insurance Plans?

Health Savings Accounts (HSA) are the most exciting thing to happen in health insurance in a long time. "Exciting" and "insurance" aren't two words commonly found in the same sentence, but with Health Savings Account Compatible Health Plans that may be different.

These California medical insurance plans are exciting for two reasons:

1. The health insurance premium is significantly lower than conventional California health insurance plans; and,
2. People who have an HSA compatible health insurance plan are eligible to set up a Health Savings Account, which is much like an IRA. Essentially, people can prefund their California medical insurance plan deductible into an account which they own. Best of all, the money deposited into the HSA accounts is Federal Income Tax deductible.

To be compatible with a Health Savings Account a California Health Insurance plan must have a high deductible. Accordingly, these plans are called "high deductible health plans" or, what else, "HDHP."

There are some unique features of these California high deductible health insurance plans. They are designed to be catastrophic health insurance plans where small items, like routine doctor's office visits are paid by the insured person. When something serious happens and the insured person needs major medical treatment, the health insurance plan will pay for that.

One very unique feature of a Health Savings Account High Deductible Health Plan is that, unlike conventional health insurance plans in California, these plans do not pay for prescription medicine expenses until the entire medical deductible has been paid by the insured person. On most California individual health insurance plans prescription medicine is available immediately especially for generic medications. Sometimes conventional health plans have a separate deductible for brand medications. On Health Savings Account compatible High Deductible Health Insurance Plans in California, no prescription medicine benefit is paid until the entire deductible has been paid.

Another unique feature of Health Savings Account High Deductible Health Plan is that when two or more family members are covered on the same plan, all members of the family contribute to a single deductible. This is much better than traditional medical insurance plans in California where usually 2 separate deductibles must be paid before the insurance company starts to pay. In this situation, many members of a family can pay a lot for medical services yet never reach the medical insurance deductible.

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