Posted on 11/01/2009 8:18:32 AM PST by janetjanet998
WASHINGTON – Those tax-free spending accounts that you and your co-workers use to help pay for dental work, insurance copayments or over-the-counter drugs face a hit under the health overhaul bills in Congress — unless a coalition that includes a powerful union, insurers and others can stop it. Bills in the House and Senate would cap at $2,500 an employee's allowable annual contribution to a health care flexible spending account. There is no federal cap on contributions now, though companies that offer the accounts — more than 80 percent of companies employing 500 or more workers do — typically impose their own limits, usually around $5,000. Workers can use the accounts to save pretax income, which then can be used to reimburse a range of medical expenses, including dental and vision costs, prescription and over-the-counter medications and copays and deductibles — again without being taxed.
(Excerpt) Read more at news.yahoo.com ...
I am 50, but I only pay about $107.00 monthly for my health insurance premium, total. (Self employed)
I can do this, since my health insurance has a $5000.00 deductible.
If I ever get sick, I can transfer money into the HSA account, write it off my taxes, and then pay my health care bills out of the HSA.
It is a very smart idea, and everyone who can do this, should do this.
Of course, I could simply pay $400 to $500 a month for a very low deductible plan -— but premiums to the insurance company are gone forever -— HSA money is MINE to keep or use as I see fit, on my health care.
Those sacks of crap are completely out of control.
"Curbing overuse"-- is that another word for "rationing"? Sure sounds like it to me. I find it amazing that the Democrats are afraid we will "overuse" our own money, but we are supposed to believe we'll get unlimited care when the government is paying for it. I can see it now-- we aren't rationing, just curbing "overuse."
Yet we can still pay $8000 for someone to "overuse" housing, or $4000 for someone to "overuse" a new car?
I’m very outdone with my insurance agent. I just recently changed from a regular group policy to an individual 5k deductable policy with a HSA. When I crunched the numbers and compaired them to my previous policy, I was astounded, then pissed off at how much money I was wasting. My agent NEVER told me about HSA’s, another self-employed friend did.
Don’t be too hard on the agent.
Lots of folks have gone into the HSA idea, but NEVER funded the savings portion -— and then family blames the agent when the insured gets sick!
VERY stupid, for anyone to get upset in that situation, IMHO, since even if your HSA has little money in it, you can always transfer money into it later, even after you get sick!
However, some agents are a bit spooked about clients who might not be responsible, or plan very well.
Sorry, you are WRONG on that point.
You are speaking of an MSA, not an HSA.
The HSA money never has to be used, and can even be rolled over into an IRA in future years, if you wish.
I’m confused... I’ve never heard of such an account where you can keep the money. Even the article notes that you have to use the money within a certain time after the year’s end. What kind of account are you describing? Is there some other option out there?
“Yeah...but the money is gone at the end of the year unless you use it.”
...yes, that’s what the people at Human Resourses always told me too...Kansas, I don’t understand how you can avoid the “use it or lose it” policy....thanks for shedding light on this.
Oh Yeah, I’m going to rip him a new over this one. This is a straight up a case of he makes more on my group policy than he does on me being in an indvidual policy with a HSA. He’s been on vacation since 10-15, so when he gets back we’re going to have a come to Jesus meeting.
I wouldn’t be so upset except that he handles ALL of my insurance, i.e. personal & business. Now that I know what a SCREWING I’ve been taking on my health insurance, I’m just wondering how much of this 6 week vacation I’m personally funding for this guy.
It will also punish Health Savings Accounts.
Where would one find a policy like that? I have a few years on you, but I need to find something once my COBRA eligibility runs out. If you prefer to send a private reply via FReepmail, that's fine.
Type MSA into your browser.
They different plans, under different tax codes.
The HSA plan is far superior.
My High Deductible insurance plan is with Coventry, see what they offer in your area.
American Medical Security, now United Health, has such a plan, as well.
This concept requires TWO elements: Insurance AND a “savings account” -— and they usually are not with the same company.
I put my HSA SAVINGS account with a local bank, even though I get no commission, it was a better deal!
Again, I am speaking of the HSA, not the MSA!
We had the option of 2 a Health Saving Account or a Flex Spending Account
the difference is that HSA you must have a high deductable health plan (ours is $3000 our of pocket before the insurance kicks in) you contribute tax free money to and it rolls over year after year, after you have I think it is 10K in the account you can roll it into an IRA and save for your retirement expenses
a FSA you do not need a high deductable plan and the money you put into that one is a use it or lose it much like the child care saving accounts that they started to offer a few years back
This health care initiative is nothing but one big FUA.
Thanks. Coventry does not seem to be available here.
Completely understand the 2 elements: Insurance AND a “savings account”. My credit union handles HSA accounts, so I would probably use them to manage it.
I’ve been trying to dig up quotes and had found nothing in the price range you mentioned... we’ll keep looking.
Oh boy!! TaxTAX. Whoopee!! Tax tax.Hooray!! Tax tax. Shazam!! Tax tax. RATS Delight! Tax tax.
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