Cash Value Health Insurance

Smart small business owners are dropping expensive HMO and low deductible group health plans and using high deductible Health Spending Account ( HSA) ppo plans for their health insurance plans in Orange County, California. Most small business owners do not access health care more than a couple of times a year, so buying rich benefit, low deductible health turns out to be an exercise in purchasing a benefit rarely used. The premium for a rich HMO or PPO plan in Costa Mesa, California is 30-50% higher than a HSA plan with a $1500 to $3000 deductible. The smart part of the HSA plan is the tax sheltered account you can set up to pay for expenses below the deductible. Contributions to this account are tax deductible and payed out for qualified medical expenses tax free. This is quite a tax advantage for the person in a high tax bracket. Contribution limits for 2010 are as follows:

2010 IRS Limits
	Single Plan	Family Plan
Minimum Deductible	$1,200	$2,400
Maximum Out-of-pocket	$5,950	$11,900
Maximum Contribution Limit	$3,050	$6,150
Catch-up Contribution (55+)	$1,000	$1,000