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Rx For Better Healthcare

Click the below link for info and musings about the Bush administration's health savings accounts and the related issues of tax policies, the liberal media, partisan politics and legislative reforms.

More than 6 million people enrolled in Bush administration's tax-advantaged health savings plans

More than six million people have enrolled in health insurance plans that allow them to participate in tax-advantaged savings accounts pushed by the Bush administration and enacted into law by the former GOP Congress.

The number of enrollees nearly is double the estimates from just two years ago. Karen Ignagni, CEO of the trade group America's Health Insurance plans, said Government Accounting Office figures show the typical enrollee deposited $2,100 in 2005 in a health savings account and withdrew $1,000.

Health savings accounts were created in 2003 and championed by the Bush administration and Republicans. Under these plans workers deposit monies into tax-advantaged accounts and use a portion of those monies to buy low-cost health insurance. Excess funds can be withdrawn, tax free, to cover out-of-pocket expenses of healthcare, e.g., co-payments. Monies in the health accounts accumulate tax-deferred and automatically roll over each year. Further deposits can be made in succeeding years.

There also is a retirement component of the health savings accounts, in that monies can accumulate tax free until the worker turns 65, at which point tax-free withdrawals can be taken to cover out-of-pocket costs -- co-pays and premiums -- of the Medicare program.

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The biggest challenge with these health savings accounts is breaking through the dense haze of the liberal media and thereby informing the general public about their features and benefits. Over the long haul, however, as is the case with so many other items, the truth will filter out.

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Along with the business, investor and consumer tax cuts, free trade, border reforms, law enforcement reforms, tort reforms, and the federal judiciary, those health savings accounts are landmark and positive domestic achievements of the Bush administration and the former GOP Congress.

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Here's a link to complete and accurate info about the health savings plans.

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Here's a link to the AP's biased and agenda-driven report.


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Comments (5)

The media, and the Democrat... (Below threshold)

The media, and the Democratic Party, aren't interested in having a workable plan to manage health care costs. They're concerned about having a plan the Democrats control - and whether it works or not is beside the point. In fact, there's times I think they'd prefer it NOT work, because then they can always promise to 'fix' it - because they 'care' so much more than Republicans.

For sure any health plan by the Dems will exceed costs by a minimum of 300%...

...What? Those are availab... (Below threshold)

...What? Those are available? Right now?

[stunned look of disbelief]

Nobody told me. I didn't investigate, because I thought if someone did something about it, somebody would tell me.

Now I need to go find out if that's available in my area, and whether or not my employer would pay for it.

Thanks, Wizbang!

These high deductible insur... (Below threshold)
Ken:

These high deductible insurance plans in conjunction with the MSA are fantastic. If you make some assumptions about your medical bills for 5 or 10 years and compare your total cost each year for insurance premiums and the portion of medical bills you will pay yourself, you find that the MSA and high deductible policy is better by quite a margin than any low deductible plan.

You just have to be prepared in case you have a high expense year before your MSA has accumulated enough funds. The principle is: put the amount you save on lower premiums into the MSA, and soon you'll have more in the MSA than the amount of your high deductible.

Most people don't have more than $500 medical bills in a typical year, and even a low deductible policy doesn't help much in that case, so don't pay the extra premium for the low deductible.

Insurance is to cover infrequent large risks, not routine expenses. Insurance that covers routine expenses is inefficient and expensive.

Note that your HSA contribu... (Below threshold)
philw1776:

Note that your HSA contributions (up to the limit allowed by law - check) are fully DEDUCTABLE from your Adjusted Gross Income on page 1 of the 1040. This cuts your tax bill, regardless of even high income levels.

Caveat - any withdrawals count against your medical expense deduction on Schedule A.

N.B. I am not a tax professional, but I am correct.

where do you get the most p... (Below threshold)
patrick:

where do you get the most people don't have health care bills over $500 Ken? My personal health care is well over 500 a year and my wife's arre the same as are everyone in our family over 40. Fortunately we have insurance and our out of pocket expense is not that high.




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