Want To Save On Health Insurance for Florida ?

When you understand how health insurance in Florida works, you'll find that two options provide the chance to save on your health care costs. The biggest savings are often to be found with high-deductible plans and PPO plans.

What Do PPO Plans Offer The Consumer?

Preferred Provider Organizations or PPOs negotiate with health care providers (doctors, hospitals and medical labs) to keep rates low. That means when you get services from in-network providers, you receive substantial discounts even before you have met your plan's deductible.

Here's an example of how helpful such discounts can be. When Kizzan had $915.85 worth of lab tests done and her plan's deductible was $1,000, it looked as if she would be responsible for the entire bill. Fortunately, her PPO discount cut that bill down to just $197.83.

Are There Any Disadvantages To PPO Plans?

While PPO discounts in Florida health insurance plans can be great, if you don't want to change doctors, you'll need to confirm that your doctor is listed on any PPO network you're considering. If you have to go out-of-network to see the doctor you prefer, you'll lose the benefit of the discounts. That might discourage you from obtaining much needed care because it costs you more.

How Substantial Are The Savings With High-deductible Plans?

As you probably already know, Florida insurance plans with high deductibles typically cost less than low-deductible coverage. The premiums on high-deductible plans may be 40 percent to 50 percent lower than co-pay plan premiums.

One of the biggest criticisms of high-deductible plans has been that people are less likely to get preventive services when they have to pay for them out of their own pocket. That extra expense can allow health problems to grow worse without intervention endangering lives and increasing the cost of medical treatment when the problem becomes so severe that people are forced to seek help.

Thanks to health care reform, high-deductible plans cover recommended preventive care now even if you never meet the deductible. Unfortunately, you have to purchase a plan after the passage of health care reform to get that benefit. Older Florida health insurance plans do not have to add that benefit.

How Can You Get The Maximum Savings From High-deductible Plans?

More savings are available with certain high-deductible plans that are eligible to work with special tax-advantaged savings accounts. These Health Savings Accounts allow you to save without paying taxes on the interest earned, to take a tax deduction on what you contribute to your Health Savings Account (HSA) and to withdraw money to pay for eligible health care expenses without ever paying taxes on that money.

The types of health care you are allowed to fund through your HSA is quite expansive and includes acupuncture, chiropractic and dental services, homeopathy and many other forms of health care that are not typically covered by health insurance. You can also use your HSA for your dependents to maximize the savings available. The tax deductions are available even when you not itemize deductions.

Are There Any Disadvantages To Health Savings Accounts?

If you need the funds for a non-medical expense, you'll have to pay a 20-percent penalty on the money you withdraw until you reach age 65. At that time, you can continue to use your HSA to fund health care or withdraw the money to use for anything you please with no penalty. You will have to pay taxes on withdrawals not used for eligible health care costs.

To play it safe, keep your deductible low until you save enough to cover it. Then, switch to health insurance in Florida that has a higher deductible to lower your premiums and invest the savings in your HSA. Keep doing that to continually reduce your premium costs while also building your HSA balance with tax-free earnings.


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By Wiley Long - President, eFLhealthinsurance.com - Florida's leading online health insurance agency specializing in individual and family Florida Health Insurance. Offering personal advisors to help you with all your Florida Health Insurance needs. Get an online Florida Health Insurance quote, get personal assistance, compare plans, apply online, and Save!