For the average person with no significant expensive chronic problems, the best insurance strategy for you is:
- Purchase a high deductible health plan for $140 a month (ideally with an associated Health Savings Account (HSA))
- Discontinue the traditional, expensive pre-paid health care plan we’re all used to (say this costs $600 a month ($7200 a year))
- Put the cost difference of the two plans into your Health Savings Account – over the course of the year you would have $5,520 in your HSA with money that you don’t have to pay taxes on (tax savings of $1,600)
- Pay cash for health care out of this account knowing the average person will spend over $10,000 in a given year only once every 10 years. By paying cash, you get real customer service for health care and can go anywhere you’d like without annoying in/out of network restrictions and wondering whether or not your insurance covers things you want most (like therapy visits)
- Earn interest on the pre-tax dollars in your HSA that roll over year to year and always maintain this $10,000 health care “buffer.” After a few years, you won’t have to put hardly any money into this account besides what you’ve used.
You’ll save over $50,000 in 10 years by doing this and be able to use this money for other investments.