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

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

[chiller]

WASHINGTON

[Drango]

Not true. One factor driving the cost of insurance up is that people go to the doctor when they don't really need to.

Sniff...I think (cough) I have (sniffle) a (sniff) cold (a-a-achooo) coming on. Sniff. Time to see the doctor.

[Harmless Teddy Bear]

It's called medical savings accounts and it allows individuals to set aside money tax-free and roll it over every year to pay everyday medical expenses. The accounts are then combined with a less expensive catastrophic health plan to protect the person from massive, unexpected health bills.

Where do I sign up?

[Willie Green]

This is the best hope we have had for better medical care in years.

It won't do a blasted thing unless government Mediscam price supports are eliminated.
And Congress will never have the courage to upset the senile citizens with that type of reform.
In the meantime, this is just another tax loophole for those who could afford to pay cash anyway (and probably already have full medical coverage.)

[chief911]

Wasn't the limit on the number of accounts allowed by the original law something like 100,000? I can't believe the press would mislead us with something like this (sarcasm off).

[speekinout]

this is just another tax loophole for those who could afford to pay cash anyway (and probably already have full medical coverage.)

Who would have medical coverage if they could afford to pay cash anyway? Medical coverage is a hassle.
But I don't think they could extend this to seniors. They are in their most expensive medical cost years and haven't had time to build up a surplus in their accounts.
It's like SS reform. It will be great for the younger people, but it's too late to help the people who are already retired. They will have to make do with the Socialist policy that we never should have had.

[Torie]

I am one of the few that has an MSA account currently. I use it as a supplemental IRA, and never pull the money out to pay medical expenses. I guess it is the "law of unintended consequences."

[Torie]

Actually to have an MSA account, you need to have a high deductible policy. I suspect you are shooting from the hip here again.

[PeterPrinciple]

"But I don't think they could extend this to seniors. They are in their most expensive medical cost years and haven't had time to build up a surplus in their accounts"

Yes it is extended to seniors.....if they have a qualifying insurance plan, medicare will deposit money in thier account for them to spend as they best see fit.....dental, prescriptions etc. But no company has an insurance policy that qualifies last time I checked about 1 year ago.

[PeterPrinciple]

I think the 100,000 was correct originally but then the deadline was extended and the qty increased

[cookcounty]

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

Not so, you can shop around and use it wherever you want, without some insurance company forcing you to stick with your Doc, or his "group." That introduces point competition. My wife and I have an MSA---it's good, though we've used it just once. Less bureaucracy means more competition.

[Willie Green]

I suspect you are shooting from the hip here again.

Yeah, I've become quite proficient at hitting targets that way.

Your own reply #26 is testimony to the ineffectiveness and abuse of Dubya's proposal.

[For the Unborn]

Aloha and Mahalo!

[chiller]

What have you been smokin'. If it's your money you'll spend it wisely. If it's govt.'s money, you could care less. And that's the problem today in a nutshell.

[appeal2]

Here's a fact, in any insurance contract/policy, the higher the deductible, the lower the price. My friend who's a doctor once had a health insurance policy with a $10,000 deductible. This was ten years ago and he paid about $1000 a year for a family of 5. In effect he was buying catastrophic health insurance and was self-insuring for the first $10,000. This type of policy is illegal in New York State. If I could put away $3000-5000 tax free and take out such a policy, I would do it in a NY moment. Right now I pay $11000 for a family of four. The cost would probably go down to about $3000 and with the $3000 I put away, I would save at least $5000 per year. My total family medical bills amount to about $5000 per year and I currently pay about $2500 of them.

[Western Phil]

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

The reason there are only 100,000 is that information is hard to find and it is difficult to qualify. It was designed during the Clinton administration and they did not want any reasonable alternatives to single provider.

[Torie]

Well, it is a bit more complex than that. I have an incentive to withdraw from this "supplemental IRA" before I die for medical expenses, since I can withdraw tax free. Basically, after paying the deductible on the insurance policy, it allows medical expenses to be fully deductible without having to surmount the 7.5% threashold on Schedule A. But there is no need to rush. In the meantime, I can earn pretax interest rates on an after tax basis. If I die in an auto accident suddenly, my heirs lose.

[Willie Green]

If it's your money you'll spend it wisely. If it's govt.'s money, you could care less.

Yep, and since it is MY money, I'd just as soon have it to save and invest without all the doggone federal constraints placed on its withdrawel and use. If Dubya was truely conservative, all I'd need is a regular savings and/or brokerage account. Instead, he's proposing yet another program to micromanage my investments. First Congress came up with special retirement accounts. Now it's Medical Savings accounts and Education Savings Accounts. And let's not forget his proposal for "private" Social Security accounts.
Rather than simplifying and eliminating these abominations, ol' go-with-the-flow G.W. Bush is just compounding the paperwork spaghetti that is much beloved by tax lawyers and accountants.

[Willie Green]

Well, it is a bit more complex than that.

Yes it is, isn't it?

And that's my main objection.
Fedgov and Dubya are just adding to the complexity with more specialized "accounts" with complicated strings attached limiting my access and use to money that I save.

I don't want all that complexity.
I simply want to save MY money in MY savings and/or brokerage account.
I don't want MY money spread out over a dozen different accounts with goobermint bureaucrats dictating terms of deposit, use and withdrawel.

[Torie]

Given your indifference to tax deductibility, you must not be paying much in income taxes. Maybe you agree with the WSJ, in that it is time to get lower income folks back on the income tax rolls, all to further E Pluribus Unam.

[speekinout]

Yes it is extended to seniors.....if they have a qualifying insurance plan, medicare will deposit money in thier account for them to spend as they best see fit.....dental, prescriptions etc. But no company has an insurance policy that qualifies last time I checked about 1 year ago.

Exactly. No ins. co. will insure Seniors this way. It's a good deal for young people, but Seniors have to live with the socialist policies.