Medical Savings Accounts May Be Frist's Big Health Care Plan

Fox News ^ | 12/27/02 | Fox News/Major Garrett

[chiller]

WASHINGTON

[chiller]

Here's the first benefit of a Bushie controlled govt.

[The Obstinate Insomniac]

bump

[BfloGuy]

I hope this comes to pass.

The health care system is so out of whack because of gov't intrusion that more and more people are happy with the idea of nationalizing it.

With a savings account and a high-deductible catastrophic insurance policy, many of us self-employeds could make it work.

Frist will prove himself to me with this issue.

[EggsAckley]

I've had a MSA for about five years, and I think they're the perfect answer to the insurance problem. Once a year I add up the prescriptions and they send me a check for exactly that amount. And they send it the minute they get my fax. Got it in three days.

[Vince Ferrer]

We need to back this early and loudly.

[PeterPrinciple]

"However, so far only 100,000 accounts have been created. Critics say that's proof that the public doesn't want them."

The truth is that instead of current policies being accepted, this original law required an odd deductible amount that the industry didn't have in place. It was set up to fail. There is such a thing as Medicare msa but no company offers a policy that meets the govts odd requirements.

[Lizavetta]

The health care system is so out of whack because of gov't intrusion that more and more people are happy with the idea of nationalizing it.

Isn't it amazing....you look at the things the government runs and wonder why people want the government to "take over" more things. Veterans' hospitals, government schools, government "services" (DMV for example) ridden with inefficient, unfireable bureaucrats (IRS for example).

And people scream for government to 'manage' their health care. How stupid can we be? How could we delude ourselves into thinking that the quality will be anything other than crap?

[dawn53]

it allows individuals to set aside money tax-free and roll it over every year to pay everyday medical expenses

A medical savings account that could be rolled over makes sense. The ones offered through my husband's employer do not allow you to roll over your excess. Therefore, if your bills do not add up to the amount you've deposited, at year's end, you lose that amount you've deposited but haven't used.

[what's up]

I researched these; unfortunately, I don't think they're offered in Hawaii.

[chiller]

They will, once people know about 'em, and they're available, which is the point of this.

[chiller]

When anyone says they want "the government" to take over, or "the government should do something", I ask them if they enjoyed their last visit to the Dept. of Motor Vehicles, or (insert ANY govt. office here).

Then ask them what the hell they've been smokin'.

[Honestfreedom]

A medical savings account that could be rolled over makes sense. The ones offered through my husband's employer do not allow you to roll over your excess. Therefore, if your bills do not add up to the amount you've deposited, at year's end, you lose that amount you've deposited but haven't used.<<

Dawn, that is a cafeteria plan, not a Medical Savings Account. Much different animal.

[Taxman]

MSAs are an excellent idea -- and a step towards breaking up the Liberal/Socialist/Marxist cabaal, as well.

Hope the Republicans have enough backbone to get a good MSA plan enacted into law. They are gonna get severely beat up by the Hitlerys, Schumers, Kennedys, et al. Not to mention the Liberal/Socialist/Marxist press.

Gonna be fun to watch, and gonna be fun to participate in.

Good segue to the fundamental tax reform effort, too. A double win?

For example, if MSAs are a great idea (they are), then ESAs (Educational Savings Accounts) are a great idea. One can make a case for USAs (Unlimited Savings Accounts -- totally tax-free money going in and coming out).

Then the question becomes: "Why are we taxing savings and investments at all?"

Not too far to stretch, and we'll have a consumption tax debate. Bring it on!

[Lizavetta]

Then ask them what the hell they've been smokin'.

They'll tell you that all that is lacking, to make government services perfect, is.....MORE MONEY.

[Drango]

I looked into a MSA several years ago...they were so awkward and ham-fisted. Combined with the lack of overall information, I never pulled the trigger. Perhaps if they go mainstream?

[alloysteel]

The concept is simple enough - set aside an equitable amount of money, and protect it from taxation, to take care of basic medical needs, then carry a catastrophic medical insurance policy to cover the really crushing medical costs when the bills mount up in a crisis or long-term situation.

The medical "insurance" program as it now exists in America was cobbled together almost as an afterthought during the Second World War, when wages were frozen, and the big employers had to offer a fringe benefit to lure in workers. When the wage freeze was lifted, the benefits were continued as a company expense, instead of being given as a wage increase, and relying on the employee to see to personal protection against medical costs. For years, there was no portability to many of the health plans, and an artificial crisis was created, which keeps surfacing today.

[Willie Green]

Here's the first benefit of a Bushie controlled govt.

Doesn't do a darn thing to actually lower medical costs.
Just another loophole tax dodge for those who dabble in the stock market.
Just as fraudulent as his "terrorism insurance".

[OldFriend]

This is the plan that Steve Forbes was recommending when he ran for President. I believe his magazine uses these accounts with the unused money in the accounts reverting to the employee at the end of the year if it isn't used.

[speekinout]

Doesn't do a darn thing to actually lower medical costs.

Oh, Yes it does!! If you have a medical account to spend anyway you want, and don't have to go to a specific plan or dr. for care, they will be competing for business and not spending all of their time and money arguing with ins. cos. You will go in, get the care, pay cash, and leave. No admin. costs to speak of.
There would probably be more specialized clinics and such for routine care - a free market is always cheaper in the long run than a monopoly.

This is the best hope we have had for better medical care in years. The carry-over provision is necessary, though.

[Wissa]

Doesn't do a darn thing to actually lower medical costs.

Not true. One factor driving the cost of insurance up is that people go to the doctor when they don't really need to. People react differently when they have to pay for a service themselves. When they have a financial stake in choosing to go to the doctor or not, they are more apt to conserve.

An anology would be, if I could buy coverage that would allow me to have unlimited drycleaning of my clothes, I'd get my winter coat drycleaned once a week, and I'd get all of my suits drycleaned on a regular basis... even if I hadn't worn them since the last cleaning.