What Does It Mean When HSA Plans Say It Only Covers 60%?

Understanding how your HSA (Health Savings Account) plan covers expenses is crucial for managing your healthcare costs effectively. When your HSA plan mentions that it covers only 60%, it means that the plan will pay for 60% of the covered medical expenses, and the remaining 40% will be your responsibility.

This concept is often referred to as 'coinsurance,' where you and your insurance provider share the cost of healthcare services following the payment of your deductible. Here's what you need to know:

• Coinsurance is a percentage of costs that you pay after you've met your deductible.
• It encourages you to become a more conscious consumer of healthcare services.
• By sharing costs, both you and your insurance company have a stake in keeping healthcare expenses manageable.

So, when your HSA plan indicates it only covers 60%, it means you'll pay 40% of the covered expenses. It's essential to review your plan details carefully to understand what services are covered under this coinsurance arrangement.

When enrolling in an HSA plan, it's vital to grasp the implications of the plan covering only 60%. This means after your deductible is met, you will be responsible for 40% of the covered medical expenses, underscoring the importance of financial planning in your healthcare journey.