Rising medical insurance costs have forced some small businesses to cut their medical benefit plans entirely. This has not only resulted in an increase in the number of uninsured workers, but it also makes those businesses suffer because they are less likely to recruit and retain quality employees. Some companies, however, have made small business group health insurance coverage affordable by adopting a high-deductible medical plan and establishing health savings accounts for their employees.
Health savings accounts are similar to regular savings accounts, in that the account holder can make any number of deposits which collect interest. The benefit of these accounts is that neither deposits nor interest can be taxed, and pre-tax payroll dollars can be automatically deposited in most cases. The account holder can use these funds for all medical expenses, including prescription drugs and paying their monthly premiums. The premiums should be extremely low because of the high-deductible medical plans that usually accompany the accounts. These plans will safeguard the insured against major health crises like surgeries and cancer treatment, while routine health maintenance is usually covered entirely by regular deposits into the tax-favored account.
To find the best possible high-deductible plan to go along with the health savings accounts, business owners are best served by finding an insurance broker or an independent insurance agent who can track and negotiate the most competitive rates. Because the coverage being sought will not apply to most routine procedures or office visits, there is great potential to find amazingly low rates.
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