Todd Daniels, President/Agent of Daniels & Associates of Lake Orion, offered his take on the future of health care benefits, along with a synopsis of new products on the market to the Orion Area Chamber of Commerce last week.
Daniels pointed out that whatever the future holds, the cost of health insurance will continue to increase.
‘Costs of health insurance are increasing by about 7.9 percent annually, making it about 16 percent of our nation’s gross domestic product,? he told luncheon attendees. ‘It’s also the fastest growing component of employers? costs.?
Daniels said the cost of providing a family of four with health care for a year is about $11,500, and around $4,200 for an individual.
‘More and more, the costs of medical insurance are trickling down to the employees,? he said. ‘It’s hitting all of us in the pocketbook — whether we like it or not.?
With the goal of providing health insurance consumers with more affordable products, many insurers are encouraging individuals and families to take a larger role in managing their health coverage and costs.
The wave of the future, said Daniels, will likely be ‘Consumer Directed Health Care.
‘I think Health Savings Accounts are what many more people will be taking advantage of to save money,? he said.
He added, however, that consumers who pay significant sums of money for prescriptions may be better off with more traditional plans.
‘HSAs are not right for everyone,? said Daniels. ‘But there can be a significant cost savings for many.?
A Health Savings Account is a tax-favored savings account, combined with a qualifying high-deductible health insurance plan.
‘By allowing you to deposit tax-deductible funds into an account that you can use to cover medical costs, HSAs enable you to take control of your own health care decisions,? said Daniels.
Most HSA plans have deductibles in the range of $1,100 to $5,500 for singles, and between $2,200 to $11,000 for families.
Another advantage to an HSA is that they allow the consumer to legally avoid federal income tax by saving 100 percent of the health plan’s deductible.
For more information about HSAs contact Daniels at (248)814-7543.