BSC Health Savings Plan for Individuals 2018

Meet Mary and Scott, who, like many Birmingham Southern employees, have been on traditional health care plans

Under that plan, they pay a set monthly premium in exchange for guaranteed deductibles and copays to visit the doctors and pharmacies in their network They pay the same amount monthly, whether or not they use their insurance Their plan has been working well, and both have confidence in their health care coverage This year, both Scott and Mary will be deciding which healthcare plan is the best fit for their future needs Mary is planning to make the switch to Birmingham Southerns' blue preferred plan, a non-traditional insurance option, also known as a health savings plan

Scott, however, it is staying on the blue secure plan, previously named the Core PPO plan for 2019 He will continue to pay his typical insurance premiums for the year If Scott's healthcare needs this year are the same as last year, he'll make one visit to the doctor for the common cold He'll pay out of pocket to cover his copay to visit the doctor and get a prescription Altogether, his total medical expenses will equal $1,778

What if Mary Catches Scott's cold? Mary's plan will cost $900 in annual premiums The college will give her $1,000 to start her health savings account Throughout the year, she will add tax free to the same account at the maximum level allowed Out of this savings account, called an HSA for short, she'll pay the $90 Doctor's bill in full plus $15 for medicine

She'll keep her HSA balance of $3,395, which will roll over to cover any health care needs she might incur in 2020 Although Mary will put $3,400 towards her healthcare next year, she'll only spend a total of about $1,000 – a big savings when compared to Scott's total costs Plus, since her HSA contributions are tax deductible, she will save an additional $335 She now has more control over her health plan She chooses how much she wants to contribute to her HSA and determines where to invest her savings to earn interest

If serious complications arise under her health savings plan, she's still protected Plus Mary can tap into her HSA for nonmedical expenses, if needed Would you be better off switching to an HSA individual plan, saving money while keeping your health cared for? If you do not want to save the maximum like Mary, you could make a custom contribution to your HSA For example, you could choose an amount that would be the same monthly payment as if you are on the Core or Blue Secure Plan and still roll over any money you have left Now may be the time to consider an HSA if you haven't before

Go to wwwbscedu/openenrollment to find instructions about how to calculate your estimated HSA savings based on your current medical expenses It's quite possible an HSA will not only save you money, but earn you money as well