I am looking for health insurance and I can't decide between a regular insurance plan or a plan that includes health savings accounts. What is the difference between these two and which one is the best? I am on a tight budget.
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Which one is best depends upon your situation. Are you the type that runs to the doctor for every little sniffle or do you rarely go see the doctor. Are you generally healthy or do you have health concerns. The simplified answer: The idea of the HSA qualified plan is to also open up a separate savings account that works similar to an IRA with tax advantages (but you don't have to). The plan usually has a higher deductible than a "traditional" co-pay plan and lower premium. You pay the negotiated discounted rate if you go to the doctor. This amount can be paid out of the HSA and will go toward the deductible. If you have a catastrophic illness or accident you pay the deductible then everything is covered 100% (if you get the right HSA plan). This plan is better for healthy people who seldom see a doctor except for preventive check ups. If you go to the doctor 6 or more times per year you will want the "traditional" co-pay plan. The premium is higher but you just pay the co-pay at the doctor. You'll want to go visit a local independent agent to get more details. In my area the average doctor co-pay is $25, the average doctor fee with the HSA plan is $75. You can do the math (with the agents' help) to decide which is best for you in your area.
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