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Copay vs high deductible plus#

Your HSA is a personal tax-free health savings account that can be used to pay for eligible medical expenses.

Copay vs high deductible plus#

The key difference is that an HSA-based plan has two parts: Insurance PLUS a health savings account. With an HSA based plan, you often pay a lower premium in return for having a higher deductible. Keep in mind, this number will vary based on several factors. To put a number out there, let’s say that you and your employer pay $6,000 a year, or $500 per month for this plan. Your deductible could be anywhere from $500 to $2,000, but for this example, let’s use $500 for the deductible. $50 co-pay for brand name prescription drugs.

$10 co-pay for generic prescription drugs.

And, most all preventive services are typically covered 100%. Just check with your plan for those details.Ī typical co-pay plan look something like this: Once you’ve met your max out-of-pocket, insurance will then generally cover the balance. Once you’ve met your deductible you also have a co-insurance phase with cost-sharing between you and your provider on high-cost medical expenses before you meet your max out-of-pocket.

Then, when you go to the doctor or pick up a prescription, you pay a fixed cost called a “co-pay” and the insurance company generally covers the rest. On a traditional “co-pay plan” you and your employer pay a monthly premium to cover the cost of your health insurance. So let’s examine their core distinctions, the advantages and disadvantages, and the cost over time. As Health Savings Accounts have become quite popular, many people are asking, “What’s the difference between a traditional insurance plan and an HSA-based plan?” Both plans offer valuable insurance coverage to protect you from high-cost medical expenses, and yet there are some key differences.