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Health Insurance Options

At Wilbanks Securities we are strong believers in the HDHP/HSA concept depending on each individual situation. An HDHP is a High Deductible Health Policy which can be paired with a Health Savings Account.

The HDHP is designed to take care of major medical expenses after a deductible, typically between $2,500 and $10,000 has been met. HDHPs are available to the age of Medicare eligibility, currently set at 65. Premiums for HDHPs are tax deductible for self-employed persons. As you can imagine, premiums for HDHPs are generally far less expensive than those of old style health insurance plans.

The HSA is an investment account that can be established after obtaining an HDHP. Funds go into an HSA tax deferred, and come out tax free for qualified purchases. Qualified purchases include:

Funds not used for qualified purchases may be withdrawn on a tax deferred basis similar to that of a traditional IRA at age 65. There is no maximum limit on an HSA balance. Contribution limits for 2005 are set at $2,600 for individuals, $5,250 for families.

In addition to the tax benefits of the HDHP/HSA combination, the plans are portable for their owners and any money not spent for qualified purposes in the HSA will not simply evaporate as it does in a traditional health insurance plan. Unused monies can be taken as retirement income or passed to your heirs.

Our insurance agency currently has selling agreements with the two leading HSA companies, both of which have (Preferred Provider Option) PPO plans. If you would like to purchase more traditional health insurance on an individual basis, let us know during the transition process and we will help you to become appointed after you have selected a product appropriate for you from the plans we have available.