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If you have always had insurance through an employer or other group plan, then you might not realize how lucky you are, at least not until you start shopping for individual health insurance plans.  When you are still in a group plan, the most important determining factors in choosing a health plan are the monthly payroll deduction and finding your doctors in the provider directory.  But as you may already know, individual health insurance is much more expensive.

When searching for a new individual health plan, it’s important to keep in mind that you get what you pay for.  In other words, if you want the exact same healthy plan you got from your employer, your costs will probably be much higher.  But if you buy a health plan with a high deductible and / or coinsurance, your monthly premium will be lower.  This may seem attractive at first, until you realize that nothing is covered until you rack up $2,500, $5,000 or $10,000 in covered health expenses.  The only real benefit that can be used immediately on these plans is preventive care, which includes an annual check-up, lab work and an annual PAP test and OB-Gyn exam for women.

If this sounds a bit unfair, then consider some of the latest options in Colorado individual health insurance plans.  One of these is a Health Savings Account (HSA).  HSAs allow members to contribute tax-deferred dollars to an interest bearing account that can be used to pay for eligible medical expenses before the deducible is met.  Unlike flexible spending accounts, these accounts carry over from one year to the next and can ultimately be used a supplementary form of retirement funding.

In a recent article I found on HealthQuotes.com, “Why Is It So Hard to Buy Individual Health Insurance Plans?” a Colorado health insurance broker discusses the difference between PPO and HSA plans in greater detail.  Before you choose an individual health insurance plan in Colorado, consult with an experienced broker.