We show you how to pay Ohio health insurance premiums with pre-tax dollars. Medical costs are increasing each year, so by enrolling in your own self-directed Health Savings Account (HSA), you can manage your expenses, and reduce your federal taxes. Dental and vision expenses can also be paid with pre-tax dollars. Several carriers offer qualifying plans, and the provider networks are very large. Unused funds are not lost, and deposits can be made at any time throughout the year.
HSAs are offered by most major companies, and we help you compare the different plans that are offered in your area. In many situations, Anthem Blue Cross, Oscar, Humana, Aetna, Ambetter, Medical Mutual or UnitedHealthcare are the best options (private or Group). If offered through an employer, contributions may be offered to workers (often up to $3,000) and directly deposited into their Group account.
The Internal Revenue Code provides two situations that allow medical expenses to be tax-deductible. When filing your taxes, instead of taking the standard deduction, itemizing deductions on Form 1040 Schedule A is required. With the higher standard deduction now allowed, many more taxpayers are not itemizing. For single taxpayers, the standard deduction is $12,550. This amount increases to $25,100 for married couples filing a joint tax return.
Also, only amounts exceeding 10% of the AGI (Adjusted Gross Income) can be deducted. “Double-dipping” is not allowed. This situation occurs when you attempt to deduct premiums as a medical expense after they are previously deducted from your wages before taxes are applied. You can view your pay stubs if you do not know the tax status of the premiums. If you utilize tax preparation software such as Turbo Tax or H&R Block, it will alert you if you attempt to deduct the same expense more than once.
Health insurance premiums may be able to be deducted if paid with after-tax dollars. Self-employed persons can deduct their healthcare premiums (form 1040) regardless if deductions are itemized. Additional expenses may be able to be deducted on Schedule A. Dependents on the policy also qualify for the same deductions, although after age 26, they will not be able to remain on the policy. Premiums, however, may be subject to FICA taxes. After age 26, an SEP (Special Enrollment Period) is created, and the dependent can apply for guaranteed coverage through the Marketplace.
Must Have An HDHP
The first step is having a qualified high deductible health insurance plan (HDHP), sometimes referred to as a “catastrophic” insurance plan. Because of the higher deductibles, rates on these types of plans are substantially less than a traditional copay plan. Currently, $6,750 is the highest allowed deductible, while $1,350 is the lowest. However, medical expenses are still discounted prior to the deductible after “negotiated network discounts” are applied to your bill.
The biggest reductions apply to larger procedures, such as big hospital bills. However, smaller expenses, such as office visits, lab fees, x-rays, and prescriptions are typically discounted. Depending on the type of procedure, the reduction can be as much as 50%. Specialist visits and physical therapy also receive substantial repricing.
MRIs receive some of the steepest discounts. Instead of paying a retail price of about $2,000-$3,000 in a hospital, you can often schedule an MRI at a specialized facility (approved by your carrier) for approximately $400-$1,000. The equipment and facilities utilized should be similar or identical to hospital-provided services.
Popular low-cost policies that qualify as HDHP plans include:
Anthem Bronze Pathway X HMO 6500 0 for HSA
Anthem Bronze Pathway X HMO 5500 0 for HSA
Anthem Silver Pathway X HMO 10 for HSA
Anthem Silver Pathway X HMO 0 for HSA
CareSource Marketplace HSA Eligible Bronze
Medical Mutual Market HMO 4000 HSA
Medical Mutual Market HMO 6750 HSA
Medical Mutual Market HMO 5250 HSA
Paramount Bronze 1 HSA
SummaCare Bronze 6650 HSA
Once you have enrolled in an HDHP, you may sign up for the HSA with selected banks, credit unions, insurance companies and other approved companies. The HSA is not a policy that you purchase, but rather a savings account that allows you to deposit money on a tax-deferred basis. Typically, opening an account does not require a personal visit. It can easily be accomplished online, and you are never required to make any deposits. A small monthly maintenance fee ($2-$4) is typically required.
Preventative Expenses Fully Covered
First dollar coverage (no deductible) is provided for preventative care including routine physicals, OBGYN visits, routine annual physicals, Pap tests, and mammograms. Also, no waiting period or coinsurance will apply. However, if an undetected medical condition is discovered while performing a preventative procedure, it is possible that additional treatment will not be covered at 100%.
Chase Bank is a popular option for the “side account,” but many other banks offer similar and approved options. If you have an existing checking account or savings account with a financial institution, they may offer you several perks for setting up the account, and possibly waive the monthly fee. Additional online options provide low-cost accounts.
Cost Of Ohio HSA Plans
The cost of purchasing an HSA will not be the same for all persons. Your zip code, smoking status and age impact your rate. Your projected household income is also a factor since a federal subsidy may be available if you fall within the Federal Poverty Level guidelines. Additional HSA information is found on the government website, although most of the details are very generic.
We carefully review all of the plans in your area and help you determine which policy is best for your specific needs. Age, household income, smoking status, carrier, and zip code will impact the cost you pay.
For a personalized Ohio HSA plan quote, you can easily enter your zip code at the top of the page. If this type of coverage is not the best choice for you, your spouse or dependents, we will discuss the types of policies that give you the most benefits at the least expensive price. Several sample monthly Ohio HSA rates are shown below:
Family Of Three (40-Year-Old Married Couple With One Child) In Cincinnati With Household Income Of $55,000
$330 – Medical Mutual Market Market HMO 6750 Mercy
$425 – Anthem Bronze Pathway X HMO 6500 0 for HSA
$428 – CareSource Marketplace HSA Eligible Bronze
Family Of Three (35-Year-Old Married Couple With One Child) In Akron With Household Income Of $60,000
$297 – CareSource Marketplace HSA Eligible Bronze
$466 – Medical Mutual Market Market HMO 6750 HSA NE Ohio
$569 – Medical Mutual Market Market 5250 HSA NE Ohio
Family Of Four (50-Year-Old Married Couple With Two Children) In Columbus With Household Income Of $60,000
$136 – Medical Mutual Market Market HMO 6750 HSA OhioHealth
$296 – CareSource Marketplace HSA Eligible Bronze
$298 – Medical Mutual Market Market 5250 HSA OhioHealth
40-Year-Old In Cleveland With Household Income Of $50,000
$281 – CareSource Marketplace HSA Eligible Bronze
$318 – Medical Mutual Market Market HMO 6750 HSA OhioHealth
$357 – Medical Mutual Market Market 5250 HSA OhioHealth
60-Year-Old In Dayton With Household Income Of $40,000
$250 – Medical Mutual Market Market HMO 6750 HSA OhioHealth
$330 – Medical Mutual Market Market 5250 HSA OhioHealth
$395 – CareSource Marketplace HSA Eligible Bronze