Health Insurance Product Reviews (BETA)
Major Carriers and High Deductible Health Plans

Vimo Editorial: Health Plan Profile

Health Net, which has an excellent network in California , is selling  high-deductible PPO plans that qualify holders for a Health Savings Account (HSA).

An HSA is a way to manage your money for future health expenditures. It's essentially a savings account that you contribute to with pre-tax dollars, that grows tax free. You have to have a high-deductible insurance policy in order to open an HSA, and there are limits to how much you can contribute each year. Many people aren't aware that Health Savings Accounts (HSAs) can act as a form of secondary 401(k). If you never get sick, you can still withdraw the money at retirement age without penalty. You can withdraw money at any age without paying penalties or taxes if the money is used for health-related expenditures. Money in an HSA grows tax free there are no capital gains or interest taxes applied to it. HSAs are regulated under the Employee Retirement Income Security Act and are essentially regarded by the government as a retirement plan.

With a lifetime maximum benefit is $6,000,000 per member, Health Net's SimpleChoice HSA plan is built to withstand any medical emergency you or your family faces – with the notable exception of an unexpected pregnancy. Maternity coverage is not included in the plan.

The SimpleChoice HSA has the highest deductible of Health Net's HSA plans. As a member, you won't see many benefits from the plan until you've burned through your $4,000 deductible ($8,000 for families). But, unlike many HDHPs, this one does deliver some preventative care benefits that are not subject to the deductible, including a yearly OB/GYN exam and a prostate cancer screening exam, for which you're charged a small $40 copay.

After you've spent your deductible the plan also pays 100 percent of covered expenses, unless you seek healthcare out of network, in which case there's a large 50 percent coinsurance fee, which maxes out at $5,000.

BEST FOR: Someone looking for a cheap plan that offers limited preventative health benefits not subject to the high deductible. Also, anyone looking for an HSA-qualified plan.

PROS: In addition to Health Net's strong network, the limited preventative benefits mean that you can go to a doctor for a small copay before you've spent your entire deductible.

CONS: The lack of maternity coverage means that a young woman could be faced with tens of thousands of dollars in medical bills if she becomes pregnant.