Question

- Under the Affordable Care Act (ACA, “ObamaCare”), all levels of all plans must contain certain benefits. How would you decide which level (Bronze, Silver, Gold, Platinum) is best for you?

- What are the main characteristics of a health savings account (HSA)?

Answer 1

How would you decide which level (Bronze, Silver, Gold, Platinum) is best for you?

There four level of coverage: Bronze, silver, gold, and platinum. All the four profile of coverage covers essential health benefits.  Bronze, silver, gold, and platinum vary in terms of payment of monthly premiums and percentage of total bill cover (out of pocket cost). The percentage of the total medical bill expected to cover under plans is as follows:

1.Bronze: covers 60%

2.Silver : covers 70%

3.Gold:covers 80%

4.Platinum covers 90%

Therefore bronze plan has the lowest monthly premium and the lowest cover of the total medical bill while Platinum you pay a highest monthly premium and gets maximum medical cover.

We can say if you are willing to pay a higher amount platinum is best for you or if your pocket not allows you to platinum, you can buy other plans.

What are the main characteristics of a health savings account (HSA)

Tax deductible: As the contribution in Individual Retirement Arrangement contribution are 100% deductible so as in health savings account contribution are 100 % deductible.

Tax free: The amount you withdraw for medical expense will never be taxed in a health savings account. Qualified medical expenses include your dental visit or your visit to an eye expert.

Tax-deferred Interest earnings accumulate will be tax-deferred.

Last not the least unused money in health savings account contribution does not get forfeited.