Consumer directed health coverage plans can be a bit confusing. They are plans that have lower monthly costs, but much higher deductibles. Usually this type of plan correlates with a health savings plan through your employer. Every paycheck, a certain amount of money goes into your health savings account. This money is used to pay for qualified expenses that you may occur before you reach your deductible. Some employers will do a match to the amount of money you are putting into the savings. Only insurance plans that have a deductible of at least $1,100 for a single person or $2,200 for family, are eligible for these health savings accounts. Those are the average deductibles, and in some cases it may change.

These plans are becoming much more popular because of the rising cost of health care. Employers are not able to continue the high cost of insurance plans that have the lower deductibles. More and more small employers are able to offer insurance because of the low cost of these plans. Consumers are becoming much more familiar with the actual costs of medical care now that they are being asked to pay for procedures and doctor visits without any kind of co-pay. The hope is that consumers will stop and weigh the costs of medical care for non emergency type visits and non essential care. The name consumer directed comes from the fact that the people enrolled in these plans are deciding how much money they are willing to spend on medical care. At the same time though, it’s never a good idea to put off medical problems, so if you think you need care, make sure you get checked out.

When depositing money into your health savings account from your paycheck, the funds are taken before your taxes are calculated. The health savings accounts can be rolled over from year to year, so you can accumulate a large amount for more expensive treatments. The funds in your health savings account can only be used for necessary medical treatment. They cannot be used for elective cosmetic surgery, non prescription drugs and a variety of other things. You will receive information with your health care package on what treatments and medication you are allowed to use your health savings account on. The amount of deductibles, or services covered will vary between the different plans.