Is There a Way to Pair a Healthshare Plan with an HSA?

Absolutely YES! 

ColoHealth offers individuals and families a unique opportunity to combine healthcare sharing plans with Health Savings Accounts (HSAs) through HSA Secure.

This option merges the flexibility and autonomy of healthcare sharing plans with the cost-saving benefits of HSAs, creating a powerful tool for managing healthcare expenses. The result? Double the savings!

Understanding Health Sharing Plans

Health care sharing plans have gained popularity due to their affordability, flexibility, and diverse options for care. 

Members of these plans generally pay about half the cost of a traditional unsubsidized insurance plan while enjoying a broad choice of healthcare providers. However, it’s essential to understand that these are not health insurance plans. Instead, members pool their money into a collective fund used to cover the medical expenses of other members as needs arise. 

This is a community-based approach where qualifying medical expenses are shared, and payouts are made from this collective fund.

Key Benefits:

• Affordability: These plans are generally less expensive than traditional health insurance.
• Choice: Members have a broader selection of healthcare providers.
• Flexibility: Many plans now offer mental health resources, alternative medicine benefits, and catastrophic care options.

How Does a Health Savings Account (HSA) Work??

An HSA is a tax-advantaged savings account that allows individuals to set aside money on a pre-tax basis to pay for qualified medical expenses. 

The funds in an HSA grow tax-deferred, similar to an IRA, and can be invested in various assets like stocks, mutual funds, or simply kept in a savings account.

In 2024, the HSA contribution limits have increased, allowing for more savings:

• $4,150 for self-only coverage
• $8,300 for family coverage
• Individuals over 55 can make catch-up contributions.

How You Benefit:

• Tax savings: Contributions are made pre-tax, lowering your overall taxable income.
• Growth potential: Funds can grow tax-free and be invested for long-term use.
• Flexibility: HSAs are highly flexible and can be used to pay for deductibles, copayments, coinsurance, and other qualified expenses.

The HSA Secure Solution: Combining Health Sharing Plans and HSAs

The HSA Secure combines the best features of health sharing plans and HSAs into one cohesive plan.

It operates as an association plan with a Minimum Essential Coverage (MEC) HSA-qualified self-funded option that covers preventive benefits. The plan is complemented by a health sharing plan that activates once medical bills surpass a certain threshold. This structure allows for low out-of-pocket costs and greater access to care providers.

Who Is It For? This option is designed for health-conscious individuals and families who prioritize wellness, maintain active lifestyles, don’t smoke, and want to lower their overall healthcare costs.

This plan is only available to self-employed individuals and family members, and to small businesses. 

How Monthly Contributions Work

Monthly contributions to health sharing plans can start at under $100 per month, though they vary based on several factors such as age, the number of insured individuals (individual vs. family plans), and the Initial Unshared Amount (IUA). 

This IUA functions similarly to a deductible, ranging from $500 to $5,000. Once you meet your IUA, 100% of your medical expenses are shared among members, with the exception of preventive care.

Getting Started: Signing Up and Using Your Benefits

After selecting and signing up for the plan that suits your needs, and once approved, you can choose your preferred level of coverage. 

You’ll then pay a monthly fee, similar to an insurance premium. When medical expenses arise, your healthcare provider will bill the healthshare  directly. You’ll receive an explanation detailing the sharing arrangement for that cost and any out-of-pocket responsibilities.

For preventive care or planned hospitalizations, it’s advised to contact HSA Secure’s concierge service before treatment to ensure seamless sharing.

Is HSA Secure Right for You?

HSA Secure offers a great option for self-employed people and small businesses looking for affordable, flexible healthcare options. 

With the combination of health sharing plans and HSAs, you get the best of both worlds: reduced healthcare costs, flexibility in choosing providers, and the ability to save for future medical expenses.

To determine if this option fits your healthcare needs, contact a Personal Benefits Manager to learn more and sign up for a plan.