One of the leading ways for individuals to cover long-term care coverage costs is to utilize a health savings account. Health savings accounts have their advantages: they can help cover rising costs, increased costs or unexpected costs as they relate to long-term care. However, for many individuals understanding how a health savings account works with a long-term care policy can be a bit confusing. The following is an explanation of how a health savings account can be used to long-term care policy and with current major medical insurance.
Medical Insurance Needs
The first thing you would need to understand about how to use a health savings account at a long-term care policy combination is your current medical insurance needs. You must also understand your future major medical insurance needs. The basics of this can be discussed with your insurance representative, however it is best to have a major medical insurance plan that will cover basic forms of long-term care. This is due to the fact that your primary insurance is what will be billed first. If you need a long term care option then your expenses will be billed first to your primary major medical insurance. After your major medical insurance has been billed and the remaining balance has been determined then you will need to move to combining your health savings account and long-term care coverage.
Long-Term Care Coverage
Your long-term care coverage policy will kick in when long-term care needs become evident. For example, if you are in a major car accident and you need long-term care then your long-term care insurance policy will kick in. What will happen is your major medical insurance will be billed for your physical therapy and other related costs first. After it has been determined how much you owe following your major medical coverage in your long-term care policy coverage will kick in to the daily amount. If you are left with $200 a day after major medical insurance has picked up its part of the policy tab, then your long-term care coverage will cover however much you have chosen as a coverage amount. If you've only just $150 a day then your long-term care coverage will pay for that $150 a day. The remaining $50 within be covered by the combination of your health savings account.
Combining Your Health Savings Accounts
In the previously discussed scenario you have obtained the need for long-term care coverage due to an accident. The major medical insurance or your primary insurance has been billed and it has paid for the amount of to the limitations of the major medical insurance. At that time the remaining balance went to your long-term care coverage. The long-term care coverage was $450 a day, however in this particular scenario the rising cost of long-term care coverage have cause to daily covers to be $200 a day. This is left you with $50 a day deficit for your long-term care. At this time you would combine your health savings account and utilize the funds within your health savings account cover the $50 additional a day to end the deficit.
This combination of major medical, health savings account and long-term care insurance will mean that you will have your normal premiums to pay, however you will not have any additional out-of-pocket payment requirements regardless of the increase of coverage costs. If you are unclear on how to make the generalized steps between paying with major medical, long-term care and then finally having your health savings account cover the remaining balance then schedule an appointment with your insurance representative for further details and discussion.