People frequently inquire about the difference between a conventional health insurance plan & a health savings account. Both these plans have their own advantages and disadvantages. It generally varies from person to person and it’s a choice of their interest to go with any kind health insurance plan.
· Health saving accounts
It is important to note that these health savings accounts are not health insurance plans. There function is very much similar to a saving account set up at a bank. Health savings accounts are always paired off with a high deductible health insurance policy. In other words one can purchase a cheapest health insurance for families with or without a health saving account.
The main purpose of a health saving account is to deposit money for future health expenditure. At the time of illness or financial crisis, one can take money from his health savings account.
· Traditional or conventional health insurance
It is meant for those individuals who want lower deductibles and immediate benefit. In the health insurance industry this type of concept is often regarded as “first dollar benefit” because these are the benefits consumer gets without meeting the co – insurance provisions. For example first dollar benefits includes annual visit to a specialist, prescription coverage, OBGYN visits and sometimes non specialist visit is also treated equally.
In summary, there are various health insurance plans available to a family, business group or an individual. Healths saving account are more affordable than a traditional health insurance.