The affordable care act is a good thing for a lot of previously uninsured Americans but knowing which plan to choose can be tricky. HSA’s can be a great place to park tax free money but can also be confusing.  We get some expert help from our two guests.

If you meet the income requirements to receive a subsidy, you must purchase your insurance through Healthcare.gov. If you are not eligible for a subsidy, you are free to purchase insurance on the open market.

A web based entity can help if you are wading into the open market.  Todd and John highly recommend plans with an HSA. We discussed HSA’s in depth with Todd and John in Episode 171. They are a great tax shelter.

Right now, the penalties for not having health insurance range from $95 to 1% of your income.  The penalties are levied against your tax return.  Next year the penalties are going to go up substantially.

There are so many acronyms and strange terms in health insurance!  EPO, HSA, deductible, out of pocket, what do they all mean?   This site has a handy list that defines some common terms normal people aren’t familiar with.

A catastrophic plan is available for people thirty and under.  It’s not great insurance but if you get hit by a bus, having it can keep you from going bankrupt.  Most of these plans are not HSA qualified though.

Todd and John are hopeful that Millenials will change the way health insurance works.  There is too much double speak and obfuscation the way things stand.  This stuff doesn’t have to be so confusing and Millenials will stand up and demand that things are simplified.

I know this stuff is confusing but medical expenses are the number one cause of bankruptcy in this country which is just shameful.  Make no mistake, you can go bankrupt even if you are insured but having insurance does decrease the odds of it happening to you.

Show Notes

Ask Mr HSA:  Todd’s site to help answer all your HSA questions.

Betterment:  The simple way to invest.

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