All Americans should have the right for current and future health care cost savings, before tax dollars. Health Savings Accounts offer a number of Americans with exactly this possibility, but it is also benefit to a limited extent for the majority of the U.S.. I love the concept of Health Savings Accounts (HSA) if you are not familiar with them are savings accounts where money can be for future medical expenses on a pretax profit footing. In order for an HSA, you are eligiblebe covered under a qualified high deductible health insurance (HDHP). These are insurance companies that pay usually cost less because they require their holders a high deductible (usually) more than $ 1000 per year. Unfortunately, the eligibility requirements to participate in a health savings account excludes the majority of the population receiving a privilege that should be as basic as saving for your retirement.
In a recent response from my congressman, hesuggested that I consider a sister product, the Flexible Spending Account (FSA). Although advantageous, the benefits of an FSA behind the benefits of an HSA, especially because the balance of unused funds runs into an FSA, where annual HSA rolls over from year to year. This is a monumental difference. With an HSA, I have a means to present and future medical costs, which accumulate to a retirement vehicle that is available for any purpose at age 65 can cover. The rolloverBenefit to an even greater benefit, given the funds in Health Savings Account are entitled to pay the premiums for Cobra. Contribution to a HSA provides to use financial resources should lose their jobs. The Americans can use their HSA to pay the required 102% of their health through COBRA premiums, or they can roll the money into a less expensive high deductible health plan (HDHP) with the means to meet the high deductible.
Let's look at a few caseStudies.
Dick and Jane
Dick and Jane are engaged. Jane has the template $ in 2600 and HSA for the last five years. During this time, they only consume $ 1600 health care costs mean that Jane was able to build a health care nest egg of $ 11,400. After they are married Jane Dick implementation begins as a dependent on his health care plan that does not qualify as a high deductible health plan. Under the current legislation would be forced to Jane,adjust contribution to their HSA, but if all Americans were for these savings incentives, they would not consider this issue. Instead, they could post their $ 5150th After a year, Dick could lose his job, but the family was able to save up to $ 16,550. Their health nest egg has Dick and Jane with additional options. You can choose to continue their current coverage to COBRA, or they may choose an alternative health care option. If COBRA were cost up to $ 400 per monththey can through the use of their HSA funds. With these funds they would have the means of paying for insurance coverage for 41 months. However, it could also buy insurance to independent. Your $ 16,550 nest egg plan minimizes the risk to a high deductible of the health sector. They could absorb a possible $ 10,000 deductible and reduce their monthly payments, about $ 200, or half the cost of cobra payment.
Scott and Laura
In the scenario of Scott and Laura Scott is a seriousAsthmatics. His condition leads to a hospital about once a year costs about $ 3000 He must also continue to drugs at a monthly rate of $ 112th Scott and Laura are both groups on their employer's health plan. You pay $ 112/month with a $ 500 deductible and a 20% coinsurance. Your task is to annually in health care around U.S. $ 2610 with insurance or without insurance is about $ 4340. Your insurance saves them about $ 1700 per year by paying the full price for their healthcare. Your FSA saves about 20% (tax bracket) on their prescription. As Laura Scott, and the money is lost in the FSA if they do not want to spend it until the end of the year, save only the cost of prescriptions Scott's. Well, if Laura work their health care future is less secure because Laura HSA eligible plan does not lose, they do not all of the remaining savings in their health care expenses, nor were they granted guaranteed tax savings from their medical expenses.If they keep the health insurance through COBRA, they must clearly they must now pay up to $ 400/month. These annual premium total of $ 4000 alone means that Scott and Laura save about $ 340 per year only by the insurance company. This does not include the cost of cooperation pays off. Keeping the insurance companies have their medical costs to about $ 6000 per year or $ 550/month at a time when the family income had been reduced to increase. Scott and Laura have a very difficult decision to make regarding theirHealth care. Should they stay with coverage or they can let it expire, the family health insurance?
Did they act in a position to an HSA can, your scenario would have looked a little different. Laura Scott, and would still have the same policy, but decided to contribute the maximum allowed their HSA. Of the $ 5150 $ 2610 she moved to leave $ 2540 for medical expenses is collected for the next year. In the course of 5 years they have accumulated $ 12,700 in the HSA. If Lauralose their job their options might be considered promising. You can more easily absorb the cost of COBRA and the cost of their existing coverage areas for their entire 18-month term of eligibility. Through the wise decisions in times of plenty, Scott and Laura were able to destroy or public financial dependence in the future and still have the option to maintain their health needs to prevent it. All Healthcare providers should give consumers the opportunity to participate in an HSA and will get thetax benefits. The opportunity to participate in an HSA, should not be bound to a high deductible health insurance. Since it is written HDHP with an HSA is that most Americans discriminated against, namely the consumers whose employers do not plan to offer a qualified high deductible health professionals and those who may have a regular health care needs that a more generous health plan, young families, necessity may require, maternity or childcare.
Ironically, that are not participating twicediscriminated against. Not only did they lose the ability to prepare financially for the future needs in healthcare, but it actually results in higher costs for health care. Here's how:
1. High deductible health plans often attract the healthiest segment of society, and if you are healthy consumer from the general insurance pool, prices rise to cover the lost revenue and higher payout per consumer.
2. Non-subscribers must pay deductibles and uncovered health careof U.S. dollars after taxes, or they must try to forecast their annual health costs through a flexible spending account (FSA). If they underestimate, they are again paying for expenses associated with U.S. dollars after taxes and if they overestimate, they lose the unspent balance.
3. People training in health care needs are at the mercy of employers for the additional coverage. The loss of a job often means the loss of health care and great personal risk and financial management to bringHardness.
By eliminating the requirement that an individual has a HDHP plan, you open the door for many more participants. These are people who need to risk to their health and financial security of well-being. If you allow people to pay their insurance premiums with HSA, you give them a means of planning for their future health without discrimination on the basis of their health needs. At the national level, increase the savings rate to send more money into the banks, and reducedShe assured the unemployed. Fewer people are dependent on government subsidies, health care, because it is able to plan in times of plenty. You open the door for enhanced retirement and, by giving people access to their funds if health care is needed, you limit some of the draw on public funds because they do not end at the state-sponsored plans.
All Americans should have the right for current and future health care cost savings, before taxesDollars.
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