Let Seniors Use Health Security Accounts to Buy Better Care

Real Clear Health ^ | October 1, 2019 | Peter Roff

[re_tail20]

Atop the list of what America’s senior adults want are the preservation of their independence and a secure retirement. Admirably they don’t want to end up being a burden anyone, not their spouse, not their children, and not the rest of us. The way the system is rigged, however, almost guarantees they will.

Medicare-for-All, which most of the Democrats running for president have endorsed, will only lead to increased dependency. It’s a typical one-size-fits-all proposal that sounds good from the stump and may look good on paper. The numbers though, just don’t work.

The way forward is to expand choice and to allow seniors to take advantage of competition in the health care marketplace to bring prices down. Some already have supplemental insurance that helps fill the financial gap between what they need and what Medicare will pay for but it’s not enough. Some people need more than one walker in order to stay in their homes.

This is where creativity is needed. The green-eye shade types who approve Medicare expenditures spend lots of time thinking about what things cost. Considering how many taxpayer dollars are involved in later-in-life health care, that’s not such a bad thing but it doesn’t always take into consideration what people need.

That forces seniors to make hard choices that can threaten their independence. They need to have more options as they would under a proposal by Dr. Ami Bera, D-Calif., and Jason Smith, R-Mo., that would let them use pre-tax dollars stored up in health savings accounts to fill the gaps between items covered under Medicare and what they are expected to pay for out of pocket.

“Having a Health Savings Account is a powerful resource that reimburses everything from doctor and dentist visits to prescription drugs, first aid supplies, and eyeglasses. Health Savings....

[Harpotoo]

I have a FSA and it’s a great thing.
But I earn a wage.
How would pre tax dollars work when no income?

[outofsalt]

Absolutely!
In my forties I considered my retirement and the one gap I could not address was health insurance. I wanted to buy a policy starting in my youth that would cover my health costs 25-30 years in the future. If you could pay lower premiums for decades before retirement you could build value for later in life.
No company would write such a policy.

[sanjuanbob]

I have an F supplement. No copays or deductibles. No doctor referrals. Pick your own specialists.

[z3n]

I have an HSA. My contributions to it are deducted before taxes are calculated and withheld in payroll. So it’s much worse than skirting bureaucrat control with my healthcare expenditures, it is also the fact that all of that money went to me before the IRS had a chance at it.
These are all things that are anathema to the instincts of policy makers

[DannyTN]

I agree, but not just Seniors.

Everyone should have HSA available regardless of what other plans they have.

And the plans should be inheritable. Tax withdrawals for anything that is not medical related.

[JoSixChip]

I have an F supplement. No copays or deductibles. No doctor referrals. Pick your own specialists.

The problem with plan F is that they are not taking new participants. That means an aging membership with greater medical care needs. That will cause rates to go up faster then other plans. I just put my wife on plan G, almost same as plan F but you pay the part B deductible (~$200). Or there is still a high deductible plan F. Have you considered switching?

[gattaca]

bump

[sanjuanbob]

I have...my open enrollment is June, am considering G. Like you said, F is going up a lot every year. Each company has their own rates though. I’ve had 3 companies the last 4 years...currently Cigna Loyal America.

[hanamizu]

I believe new plan Fs are going away for new enrollees. My wife and I are currently on plan F and will likely stay on until it becomes too expensive. Right now plan G is $200 dollars a year less than F ie. the same price when you figure in the deductible, but that will no doubt change as time and plan F enrollees pass.

[ml/nj]

Medicare-for-All, which most of the Democrats running for president have endorsed, will only lead to increased dependency.

Medicare-for-all will end Medicare for Seniors, I paid tens of thousands of dollars over the years into this program. Bernie, et al., want to give "it" to everyone for "free." Geezers, like myself, will be a the back of the line when the choice has to be made between us and the assorted fathers of four.

As for Medicare now, I have nothing but Medicare A, B & D. I have cancer and had to undergo months of chemotherapy, and now diagnostic testing and doctor consultations every three months. My out of pocket cost is a few thousand dollars a year (plus what I have to pay for Medicare B and D).

ML/NJ

[libertylover]

Medicare-for-All, which most of the Democrats running for president have endorsed, will only lead to increased dependency.

Sadly, socialism will always look good to those who think they can get something for nothing.

[EVO X]

How would pre tax dollars work when no income?

It wouldn't work. The issue is people working over the age of 65 can't open or contribute to an existing HSA account. Funds can be withdrawn from HSA accounts, but new money can't be added.

[Hattie]

Unfortunately, most of these radical socialist voters think Medicare is free. When you pay 20% of your bills plus hefty monthly premiums deducted automatically from your Social Security checks, that’s a far cry from free. Better have some good savings tucked away for the rainy days that come with old age.