In Texas, There, However S More Commonly Another Situation: Employees Not Having Health Insurance At All

Category: Finance, Insurance.

Companies looking for ways to cut costs in a competitive marketplace are increasingly looking to health insurance as a source of savings. In Texas, there, however s more commonly another situation: employees not having health insurance at all.

While that s not good news for employees, it does represent something of a trend- - employees purchasing their own health insurance or filling in the gaps left by workplace budget cuts. Experts say the primary reason for the state having the highest percentage of uninsured residents in the nation- - roughly 25% -- is cost, employers simply not being able, or at least wanting, to afford the premiums. Nationwide, so- called" legacy" health care costs have forced employers such as General Motors and other domestic automakers which negotiated benefits packages with workers and unions to look for ways to trim those costs. The problem of higher health care costs is not isolated to Texas, of course. Yet in Dallas, where the percentage, Houston and Austin of uninsured is typically greatest, being without health insurance is even more commonplace. More and more Texas residents are considering the Health Savings Account option, which includes both a high- deductible health insurance policy for large medical bills and an investment or retirement account from which the consumer can pay for medical care.

Employees faced with no health insurance are clearly looking for options, one being Health Savings Accounts, which provide workers the ability to save for medical expenses on a tax- free basis while having a high- deductible health insurance policy to cover large medical bills. If the money in the savings portion isn t used, it accumulates with tax- free interest until the age of 65, after which time the consumer is able to withdraw the money and use it for any purpose. Anyone under the age of 65 with a qualified high- deductible health insurance policy can open an HSA. At that point, the money is subject to normal income tax. Not all policies may be qualified under IRS rules, which include minimum deductibles which also determine the maximum amount of the contribution by the consumer. To qualify as an HSA- eligible policy in 2007, your health insurance plan must have a deductible of at least$ 1, 100 for individual coverage or$ 2, 200 for families.

Those signing up should ask whether the insurance company s high- deductible plan is" HSA- qualified, " since not all high- deductible plans meet the IRS requirements. You can then make a contribution to your HSA up to the amount of the deductible each year. Not all high deductible plans are eligible, or" qualified" . If you re buying an individual plan, be sure to ask your health insurance company if it is an" HSA qualified" high deductible plan. Another option is for an employee to take advantage of any limited benefit medical insurance policies offered to part- time or temporary workers who might not be eligible for a comprehensive group medical benefits plan. The limitations may include fewer visits to a doctor and a total limit on benefits- -perhaps as little as$ 2, 000 annually.

While the plan will likely offer less coverage, it likely will reimburse for most, of the cost, if not all for routine and preventive services. Those plans are unlikely to cover medical services such as surgery and hospitalization. There are also insurance policies that offer cash benefits for conditions such as cancer, heart disease and stroke. The major downside of a limited benefit plan includes the lack of coverage for so- called catastrophic hospital bills, something that could occur when the policy s limitations are reached. The limited cash benefits would cover treatments and nursing care, but consumer advocates point to the specific coverage( for certain diseases or conditions) as major limitations that should have consumers looking elsewhere.