“Your entire family is covered for just $69.95 per month!” When you first see or hear these ads, they sound terrific. You’re thinking “Wow! That’s cheap for medical coverage!” as soon as you start to feel excited and are considering signing up, you either read the small print or hear the voice that ends the commercial, telling you that what you have just heard about is, in fact, not an insurance plan. This is overly concerning.
These ads that most of us see and hear pretty often are for health savings cards. No, they are not medical insurance. Yes, they offer what seems like a great deal, but what is the difference? Can a savings card plan really save you money? Are you better off with a health insurance plan?
Savings Cards
Many people make the mistake of thinking that medical savings cards are the cheap alternative to health insurance. These plans are designed to save you and your family money on your out of pocket medical expenses. Some plans are exceptionally enticing, as they offer you discounts not only on visits to your doctor, but also on prescriptions, dental, and vision exams as well. That all sounds wonderful? Right? Of course, you will have to find participating providers for each of your medical needs, and you will be 100% responsible for all costs beyond the savings
You’ll definitely save some money out of your own pocket, at least on each visit. On average, you’ll pay $15-$25 less on a doctor’s visit. On medications, you could save as much as 60%. Other products and services will come with substantial savings too. At least it seems that way when it’s all laid out before you. You think you’ve gotten a good deal, but have you really?
Insurance
With health insurance plans, it may cost you a little bit more per month, and you will typically need to choose a network provider. However, you are fully covered on almost everything your plan offers, although some procedures might require you to pay as much as one-half or a certain percentage of the cost, depending on your particular plan’s terms. Other than that, the only out-of-pocket costs you will incur are co-pays for your medications, procedures and doctor’s visits, which are minimal, even compared with health savings card plans.
What to Choose
It all depends on you. If you can afford to pay some extra expense out of pocket, then a health savings card might work for you. However, this is really a better idea for a fairly healthy person who needs very little medical care throughout the year. That is, if you were to choose this option alone. For a family or someone with a lot of medical needs, insurance is the better option. However, you can get in on the best of both worlds if you are willing to shell out the money for both your medical insurance pan and a healthcare savings card plan. If you can find a card with participating providers that correspond with your medical insurance providers, you can use the card to save on your out-of-pocket expenses beyond what the insurance pays. That’s what these cards are really designed for, and that’s where the “good deal” comes into play.
