As I have been digging into HDHPs and HSAs I have come accross the term "disregared coverage" and have not really seen a definition of what that is. My guess is that it is the coverage (or lack there of) that my HDHP does not provide. I would like for someone to clarify this for me and also talk about what types of supplemental coverage will work with my HDHP and not disqualify my HSA eligibility.

In regards to the "disregarded coverage" question...stay tuned as I will get you an answer shortly, waiting on a call back from a couple underwritters at UHC, Aenta, Humana...etc. Is there any company in particular you are specifically asking about?

Supplemental Options - There are many options available. The key is finding someone, i.e. an agent, whom is knowledgeable about HSAs & HDHPs, creative or innovative in approach, and also focuses on helping you achieve your "Lowest Total Cost of Ownership" vs. just another sale/commission for them.

Based upon some objective National Medical Association statistics....

- 73% of all US Families spend less than $1000 annually over an above their health insurance premiums....HENCE the reason HSAs and HDHPs make so much sense for the average US family, especially if this is applicable to you.

- 16% of healthcare $ spent annually on bills exceeding $1000 are ACCIDENTS, with over 65% of the claims filed for the average healthy US family being accident related (i.e. broken bone, cut, trip, fall, car accident...etc.)

- 68% of healthcare $ spent annually in US for medical bills exceeding $1000 are CRITICAL ILLNESSES related (i.e. Cancer, Heart Attack, Stroke ...etc)

... Therefore, I SUGGEST reviewing a couple of the following as options worth strong consideration:

1) Accident Coverage - a great complement that is worth the small cost many times
over for the average US family with kids....typically b/w
$15 - $60/month depending upon benefit amounts etc.

*** Note-> Don't do a scheduled plan here as it's not worth saving 10 bucks ... you
want an indemnity benefit of approx. 2500 to 7500 with $5000 per
accident/injury being the vest value and fit for most

2) Critical Illness Policy - These come in 3 flavors or types:
(life based, health based, or schedule benefit based)

- I would stick with lifed based products for several
reasons including but not limited to the
following....stable cost (NO RATE INCREASES!), you know
exactly the amount of the benefit...THE FACE AMOUNT YOU
CHOOSE which should be a minimum of 20K to 100K (50,000 is
most common)with costs dependent upon age, with about
$45 being the national average for cost per policy

*** Note -> Statistics also show that approx. 84% of ALL Americans will be directly
affected by one or more of THE BIG 3 - CANCER, HEART ATTACK, STROKE before
age 65! (92% of Males & 76% of Females)

-> Additionally, you are 22 times more likely to benefit from a Critical
Illness policy than life insurance, but only if you buy one that is
comprehensive (meaning not just a cancer, or stroke, or other policy)

3) Other Options

-> A Strong RX supplemental policy
-> Indemnity Mini Med Benefit Policies (Value Med for example)
-> Dental, Vision, Hearing Supplemental Policies

If you need a referral or a suggestion in terms of a resource for such policies, let me know and I can get you a list of several, including companies to check with and links to review options.

Hope this helps!

The Benefactor

Thanks Mr. or Ms. Benefactor,
No specific insurance company on the "Disregarded Coverage" question. I've seen the reference in the HSA 'Grab Bag' was very curious as to the definition.