Yeah, this is all we need to cure healthcare woes....

[EC]

Copyright 2005 Los Angeles Times
All Rights Reserved

Los Angeles Times

January 16, 2005 Sunday
Home Edition

BUSINESS; Business Desk; Part C; Pg. 1

916 words


James Flanigan;
Savings No Salvation for Healthcare

James Flanigan


Don't look now, but here comes the Bush administration, eager to slap the latest Band-Aid on the badly broken U.S. healthcare system.

This time, it's health savings accounts that are supposed to save the day.

HSAs are tax-exempt investment vehicles -- similar to 401(k) plans -- in which an individual can deposit $1,000 to $5,000 a year before taxes, build up savings tax free and then withdraw the funds, also without penalty, to pay medical expenses. Or at least to pay "ordinary" expenses, including doctor visits, blood tests and other relatively simple treatments. Traditional health insurance plans, meanwhile, would still cover more serious medical procedures.

Lurking behind HSAs is a concept known as "consumer-directed healthcare," a belief by some economists and government officials that medical inflation would be tamped down if patients were forced to pay more of their own doctor and hospital bills rather than simply sticking their employers or insurers with the tab.


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[OneBlueSky]

1. awful lot of people don't have $1,000, much less $5,000 . . .

a year to "invest" in this way . . . sounds like a preliminary skirmish in the drive to eliminate Medicare to me . . .

[ikojo]

2. I work for an HMO and an HSA was one of our

options this year during open enrollment. Of 400 employees only seven selected this option. The company was even putting in half of the deductible amount (they were contributing $750.00). It'll be a boon for Wall Street because the money is invested a la a 401(k).

How am I to afford this on top of putting away money in a 401(k), putting money away monthly in a mutual fund account, having money taken out of my check for savings bonds, paying rent, buying food and other things? How?

I don't see how parents afford everything, especially those who don't make a lot of money. Surely not everyone makes $100k a year, I know I don't. Heck I don't even make 40k a year.

HSAs were the dream of the former head of Golden Rule insurance, a big time Bush supporter. Before it eliminates Medicare, it will do away with PPOs, HMOs and other health care coverage. We will return to the world of 80/20 plans where you really have no idea what your out of pocket amount is going to be.

[EC]

4. Yeah, I work in insurance (hate it, hate it)

and we carried Golden Rule, I thought is was a useless plan, myself, wouldn't have it...we pretty much use Celtic now, but I don't care for it either...

[FormerDittoHead]

3. I hope this isn't an example of Bush's upcoming tax 'simplication'...

whew. Just checked out some of the details at the industry sponsored:
http://www.hsainsider.com

First off, for those claiming that doing their W-2's on a 1040EZ was complicated, just wait until you check out THIS...

Second, this isn't any kind of 'bank account' like an IRA where, in the end, you get complete control over it.

You don't get to simply put the money in a bank account and cut checks from it, but only for medical bills.

It is (surprise!) an added "service" insurance companies provide (service fee? commission? do they do this for FREE?).

Additionally, there appears to be another layer of bureaucracy for medical providers to work through in their billing process...

[EC]

5. I've argued against this for some time now

can't see how people can afford it.

[shrike]

6. Many people I talk to are not even aware this exists

And when I explain just what this means, they are horrified.

[eridani]

7. Merely a message from the rich and healthy to the sick and poor

namely, FUCK OFF AND DIE, ALREADY!!

[zanana]

8. 13 years ago, I had bypass surgery...

The bill came to $75,000. What kind of savings account could have helped me then? You can't possibly save enough money to cover your medical expenses if you're over thirty.