For single coverage on a 38 year old, match the monthly premiums on the left to the corresponding plan designs on the right:
- $509.36 1. $ 2,500 Traditional Deductible Co-Pay Plan; ACA compliant
- $541.01 2. $ 2,800 High Deductible Health Plan (HDHP) or HSA); ACA
- $371.60 3. $ 5,500 HDHP; ACA
- $430.73 4. $ 2,000 HDHP; Level Funded (Underwritten)
- $508.64 5. $ 500 Traditional Ded Co-Pay Plan; ACA
Hint: Premiums for “Community Rated” Affordable Care Act (ACA) Plans are based on age. In the small group (2-50) segment, all applicants must be accepted on the first of any month, regardless of pre-existing conditions.
Another hint: Level Funded Plans are a self-funded hybrid that allows insurers to assess risk through medical questions (underwriting).
Extra credit: If our 38 year old contributed just the monthly premium savings between a traditional co-pay plan and an HDHP, at age 65 there would be $88,777 in the HSA. Which of the following would be considered non-taxable medical expenses:
- Medicare Part B premiums?
- Part D prescription drug premiums?
- Medicare co-payments and deductibles?
- Long term care insurance premiums?
