Health Savings
Accounts. HSAs or "Health Savings Accounts"
are not insurance, but unlike the other options, you must have
insurance in order to set one up. They provide a way of lowering
your premium by accepting a high deductible, in some cases as
high as $5000 or more. The federal government allows you to put
a certain amount of your income—pre-tax—into the savings
account. You then draw out of that account to pay the deductible,
co-pays, and other expenses not covered by your insurance, including
the co-pay on prescriptions and the cost of things like vitamins,
bandages, and even alternative medical treatments. You must keep
your receipts as any money you withdraw that is not used for health
care is subject to tax. If you do not use the money in one year,
it simply continues to grow from one year to the next. Currently
there is no ceiling on the accumulation although there is a limit
to the amount that can be put in each year. If you lose your health
insurance, you can still keep your HSA once you have it started.
People in relatively good health often like the HSAs and high
deductible insurance policies because they have insurance in the
event of a catastrophic illness, but enjoy a lower premium in
exchange for virtually self-insuring the day to day health care.
Fraternities
or brotherhood organizations: Groups of people with something
in common, such as a religious organization or a fraternity sometimes
have a health coverage program. An example could be a utility
co-op. These are not considered insurance, but if you have one
in your area, the local hospital is more likely to react favorably
to them than to a discount plan. You pay a monthly premium. That
premium is then routed to pay for a particular need in a given
month. With some such organizations, you are told each month where
to send your premium. If you should be hospitalized yourself,
you submit a claim to the organization. In the following month
or two, some of the premiums paid by the members will come to
you. If you receive more than the amount needed to pay your bill,
you will be expected to return the difference so it can be routed
to another person's bill. Generally, in order to be successful,
these groups depend on the integrity and sense of responsibility
of the individual members. Also, you may or may not have to be
a member of the specific fraternity in order to join for purposes
of health coverage. Utility or farm co-ops often require membership
or referral by someone who is. Religious fraternities will not
require you to be a member of a given church, but may ask you
to sign a statement of faith.
