Blue Cross Blue Shield of North Carolina is one of the largest providers of Charlotte health insurance, and two of their more popular insurance policies are the Blue Advantage (the company’s basic plan) and Blue Options HSA (health savings account). If you are looking for an insurance policy, then you can choose between those two; but which is better?
Before going into specifics, you need to learn a couple of important terms regarding health insurance; deductibles, copayment, and coinsurance. First is deductibles; this is the amount that you, the insurance holder, has to pay for your medical expenses before your insurance policy takes effect. For instance, if you choose a deductible of $1000, then you have to pay out of your own pocket if your medical bill falls under that amount; if it goes over, then the amount will be paid either in full or in part by the insurance company.
Co-payment is the fixed amount that you have to pay for medical expenses, this amount will depend on the type of health insurance you avail of. For example, if your insurance policy states that you have to pay $20 as co-payment, that means you will pay $20 every time you visit your doctor for treatment; this amount will also depend on the type of service that you are availing of. Co-insurance is a bit like copayment, but instead of a fixed amount, you are required to pay a percentage of the total bill.
Now back to comparing Blue Advantage with Blue Options HSA. With Blue Advantage, you will be paying a small co-payment for medical services; on the other hand, with Blue Options HSA will charge you a deductible for the same kind of services. Now it may look like you are getting a raw deal if you avail of Blue Options HSA, but in hindsight it is actually a good choice for people who are on a tight budget.
With Blue Options HSA, you only need to pay a lower monthly premium than Blue Advantage. But you can also choose to pay a bit extra that will go into your HSA. The money saved up in your HSA can be used as payment for your deductibles; it’s like a savings account that you can use for health care. So if you are the type of person who rarely goes to the doctor’s office, then it would not make sense for you to pay a large premium every month; so just choose the Blue Options HSA to save a bit of money.