Page 61 - The Informed Fed--Hearn Wealth Management
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3 times a year, and are on several on-going medications, then a traditional
                        plan  may  be  for  you.  Although  there  are  usually  higher  premiums

                        associated with traditional plans, you will also be likely to have more of
                        your health expenses covered during the year. As with all of the health
                        plans offered through FEHB, there are annual out-of-pocket maximums

                        that limit how much you would have to pay in any given year.
                            Consumer-Driven  Health  Plans:  These  are  recommended  for

                        those who have fewer health issues than those mentioned for traditional
                        coverage. You might have a minor ongoing condition such as allergies
                        or acid reflux for which you take one or two prescriptions occasionally.

                        If you see a specialist, it might only be once or twice per year. Consumer-
                        Driven Health Plans typically have a set amount of coverage that they
                        pay before you are required to pay anything; a reverse deductible if you

                        will. As an example, the insurer might pay the first $2,500 in expenses on


                        and then the insurance company would pick up 90% of the charges and

                        you would be responsible for 10%, up to an out-of-pocket maximum of



                        be rolled over to the next year, provided you stay in the same health plan.
                        So, if you only needed $2,000 of coverage this year and stayed in the
                        same  plan;  next  year,  the  insurer  would  pay  the  first  $3,000  of your

                        expenses ($500 from this year plus $2,500 for next year).


                        These plans are for those who are generally healthy:

                            HDHP    High-Deductible  Health  Plans.  High-Deductible
                        Health Plan is a fairly new offering for the federal government. Less than

                        2% of federal employees are enrolled in these plans. We believe this is
                        not because they are not viable options, but because employees simply



                        issues and only go to the doctor for routine physicals or the occasional






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