How do I rephrase this?
A Health Saving Account (HSA) is not insurance. It is an account you can set up where you put money in pre-tax (the money you put in is tax deductible) and then you must use the money during the same year on any medical expenses. If you fail to use all the money that you put in, then you lose the remainder.
A PPO is health insurance that typically has "in network" health care providers that you can use fairly cheaply (insurance pays most of the bill)... or you can use a "not in network" provider at a greater cost
(insurance pays little of it).
You can have a PPO and a HSA at the same time.
Starting in 2005, there was a new type of insurance plan called a High Deductible Health Plan (HDHP). This plan (as the name suggests) has a high deductible that you must meet before the plan starts paying most of your medical bills. At the same time, the plan deposits money (Aetna deposits $125 per month) into a Health Savings Account that is attached to the HDHP. This account is similar to the HSA mentioned above, but the money does not go away at the end of the year... also,
both the insurance company and the individual can place money into this account. These plans are very good for a fairly healthy individual since the money will continue to accumulate over time.
I know that the Federal Govt offers HDHPs, but I'm not sure how many businesses do at this time.
Will appreciate your swift and prompt response. thanks!
Do you think we are going to do your work FOR you?
Don't hold your breath :p