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Tax-Qualified High Deductible Plans |
High Deductible Health Plans are a very recent addition to the market, having made their first appearance in 2004. They convey comprehensive Major Medical coverage with tax advantages that are intended to level the playing field between Group and Individual health insurance.
They’re Tax Deductible
For many clients, this represents a more cost-effective choice and, in the long run, can significantly reduce the total amount of money spent on healthcare by a combination of smaller premiums and tax advantages that for a family can represent a $6,000 or more above-the-line tax deduction. In this fashion, most out-of-pocket health expenses (such as dental) can be paid for with before-tax rather than after-tax dollars. There are other advantages as well. These plans represent the highest percentage of sales at Longhorn Insurance for a good reason - the long term value in these plans, compared to traditional coverage, is usually dramatic.
They’re Also the Most Comprehensive Plans Available
These plans typically reduce your out of pocket risk. How? By eliminating multiple deductibles that traditional plans have and also by eliminating the 80/20 coinsurance step. While a traditional copay plan almost always carries an out-of-pocket risk of well over $10,000, a tax qualified major medical plan will usually be less than half of that.
Longhorn consultants can help you examine the difference between traditional and tax-qualified plans in order that you can make an informed decision about the kind of health coverage right for your family.
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