The concept was made to benefit working individuals and families. Unfortunately for some it hasn't worked as intended. For most Americans between 40 and 65, the Post-Covid economy could make things even worse.High deductible health plans (HDHPs) were introduced in 2004. The idea was an idea that reduced the price for medical health insurance coverage. HDHPs would especially benefit the millions of workers offered health plan coverage at the job. The plans would especially benefit younger individuals who generally have few if any health-related costs.To sweeten the offer, the federal government approved tax-advantaged Health Savings Accounts (HSAs). Individuals would contribute dollars into their individual HSA on a pre-tax basis. When withdrawn for medical expenses the amount of money would not be taxed.So what's the problem? And why will a post-Covid economy likely make the problem worse for most working age Americans?Since their introduction, high deductible health plans have increased dramatically in acceptance. Among adults between ages 16 and 64 who've employment-based health coverage the percentage enrolled in a normal health plan decreased from 85% to 57% in line with the U.S. Department of Health and Human Services. Meanwhile some 19% have an HDHP coupled with an HSA. One in four (24.5%) have a higher Deductible Plan without the tax-advantaged savings benefit of an HSA.Without question, people that have no or few medical issues during every year benefit from the money saved by selecting a high deductible plan.The same isn't true for many of those who have more serious medical needs. Many of us are one diagnosis from a most significant financial crisis. Consider that one American adult is identified as having cancer every 21 seconds and another has a heart attack every 40 seconds. Add to that accidents, pregnancies, diabetes and now, needless to say, the Covid virus.Individuals are apt to be impacted in 3 ways if they experience any serious ailment. First, they are more likely to reach their health plan deductible. Second, they will likely face meeting out-of-pocket maximums. Finally, they're likely to find not all medical costs (including the medications prescribed) are going to be covered by their insurance coverage.Below are a few hard facts. For individuals covered under a HSA-Qualified HDHP plan the 'average' annual deductible is $2,476 for single coverage and $4,673 for family coverage. The 'average' out-of-pocket maximum is $4,492-per covered plan participant. The term average is placed in quotes because the IRS defines a high deductible health plan as any plan where in fact the total yearly out-of-pocket expenses (including deductibles, copayments, and coinsurance) can not be more than $6,900 for a person or $13,800 for a family group.The plan would work when individuals contribute at least that total their Health Savings Plan. Unfortunately, that's not the case.While maximum contribution amounts for 2020 are $3,550 for self-only and $7,100 for families, few contribute the utmost. For all those with accounts open for just one year, the common individual HSA contribution was $1,166, according to Employee Benefits Research Institute. In 2018, the common HSA balance was $2,803.A Low-Cost Supplement For Your Health Savings AccountWith the majority of working age adults between 40 and 65 one diagnosis aware from the serious financial emergency, an alternative solution way to plan is warranted.Today some five million Americans have purchased critical illness insurance according to the 2020 industry analysis by the American Association for Critical Illness Insurance (AACII). Some 1.5 million individuals purchase coverage annually, most through their employer-offered coverage.A modest level of coverage is definitely an affordable way to insure sufficient funds beyond those in your wellbeing savings account. Today, the higher ci insurance policies offer both a cancer-only in addition to a comprehensive critical illness insurance plan. The latter pays a lump-sum cash benefit not just for a cancer diagnosis but for conditions like heart attack, stroke and organ transplants.For a 45-year old male who doesn't use tobacco products, a $10,000 cancer-only benefit will definitely cost around $50-to-$60 yearly. Women have a tendency to pay more (around $85-per-year) due to the heightened risk of breast cancer.Most significant illness insurance purchases tend to be modest. In 2020, AACII reported that the common of policies purchased through employers ranged from $12,961 to $15,408. While one can always argue in favor of more insurance, this modest method of planning is both affordable and sound.Following difficult financial times personal bankruptcies skyrocket. In 2006, 597,965 Americans filed for a bankruptcy proceeding. By 2010, the quantity soared to over 1.5 million.A Harvard University study discovered that two thirds of bankruptcies were linked to medical and health-related bills. The majority of those filing for bankruptcy were middle class and had health insurance. Hospital bills were the biggest single expense for about 1 / 2 of all medically bankrupt families; prescription medications were the biggest expense for 18.6 percent.A modest cancer-only or critical illness insurance policy makes enormous financial sense for those with a high deductible health plan. This is also true for those in their 40s, 50s and young 60s prior to Medicare eligibility. For some dollars a week, you may be assuring yourself the peace of mind that you'll be able to concentrate on your recovery rather than fretting about a mounting pile of unpaid bills.In read more with the Cost Calculator hosted by the Association, a 45 year old woman would pay around $82 yearly for a cancer insurance policy as a non-tobacco user. A same aged woman would pay around $108 yearly if she used tobacco products. Many companies offer employer critical illness insurance coverage and comparing policies will help you progress coverage for less money.The American Association for Critical Illness Insurance advocates for the significance of planning. Visit the Association's website at https://www.criticalillnessinsuranceinfo.org to access the free Cost Calculator for example pricing for $10,000 of coverage from leading insurers. Slome is also director of the American Association for Medicare Supplement ( https://www.medicaresupp.org ) and the American Association for Long-Term Care ( https://www.aaltci.org ).