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, features a small number of high-deductible PPO plans that qualify holders for a Health Savings Account (HSA). This is one of them.

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 SmartChoice HSA Compatible PPO  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.

With a lower deductible at $2,500, the premiums are higher than the  SimpleChoice plan After the deductible, you pay a 30% coinsurance, up to an annual out-of-pocket maximum of $4,000 --  same as that of the SimpleChoice plan. Preventive care is offered at a $35 copayment with the deductible waived. Hospital services under this medical insurance plan require an additional $250 admission fee, which continues to apply even after you have met your maximum. Emergency room visits have a $75 copayment which is waived if you admitted to the hospital during that visit.

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.