1601 N. Tucson Blvd. Suite 9
Tucson, AZ 85716-3450
Phone: (800) 635-1196
Hotline: (800) 419-4777
Association of American Physicians and Surgeons, Inc.
A Voice for Private Physicians Since 1943
Omnia pro aegroto

Which Plan Would You Choose?

Present SystemMedical Savings Account
Premium paid by employer to insurance company$3,735$4,500$1,500
Employer's contribution to employee's medical savings account$0$0$3,000
Deductible paid by employee out-of-pocket$50$250$0
Savings in employee's medical savings account at end of year$0$0$0-$3,000 at end of 1st year, with potential for increasing by up to $3,000 each year

  • Family insurance coverage to $1 million
  • Figures are in dollars per year.
  • Deductibles are rough estimates (HMO deductibles are usually quite low).
  • Premiums vary widely in different communities.
  • $4500 is rough estimate of present cost of family coverage with traditional insurance that allows you to go to the doctor of your choice (``CHOICE Plan'') and still be covered. The cost of HMO insurance averaged about 15% less than the CHOICE Plans in recent years, but HMO plans usually do not allow you to go to the doctor of your choice (unless you pay all fees out of pocket).
  • Employer pays premium of $1500 to purchase the same CHOICE plan for the employee as $4500 presently does, except that the insurance company does not pay the first $3000 of expenses. These expenses are paid from the Medical Savings Account, from the first dollar of medical care. The Medical Savings Account can also be used for eyeglasses, dental care, and other expenses that are currently deductible from income tax.
  • Today, Medical Savings Accounts are subject to federal tax, with few and limited exceptions. Legislation is being considered to allow them the same tax advantage as employer- paid insurance premiums.