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Tuesday, July 10, 2007
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You Ignorant Stupid Politician!

These sorts of characterizations make my blood boil!  These sorts of outright lies, in order to increase the size of government, are exactly what have lead to rising health care cost!

Assembly Republicans, who emerged with a budget after numerous closed-door meetings, rewarded insurance companies and out-of-state drug manufacturers with their inaction on health care reform. The Assembly budget ignores cost savings efforts, but manages to include Health Savings Accounts, which act as tax shelters for those few wealthy enough to put away money for future illness.

Jon Erpenbach, you are either a complete fool, or an outright liar.  Pick which one you'd rather be.  First of all, characterizing the Assembly budget as "secret" and "closed door" after what the Senate did when it snuck in Healthy Wisconsin is laughably stupid.  We're way beyond the pot calling the kettle black.  You're just simply smoking pot now.

Secondly, calling a Health Savings Account a tax shelter for the rich... let's just say it's a good thing you're not in ear shot of me, because your ear drums would have burst by now.  Of course... they are a tax shelter.  But I can't think of a better reason to shelter your taxes than to pay for your own health care!  Why would you want to deny lower income citizens the ability to have a greater percentage of their dollar to pay for medical expenses?  It's not just for the rich either.  Anyone with a high deductible plan can put their money away tax free to spend on their health care.  All the money you will save by having a higher deductible plan will be yours tax free to pay for regularly occurring health expenses.  For some people, that could amount to hundreds of dollars a month that they can put away, tax free!  And if something catastrophic does happen, then you still have normal health insurance to pay for unexpected emergencies.

But that's what you're really scared of isn't it?  Hundreds of dollars every month that you can't get your filthy dirty hands on you bureaucratic son of a bitch.  Hundreds of dollars that decrease your influence every month.  Hundreds of dollars that give less incentive for companies to make corrupt deals with you.

# Posted at 12:46 PM by Nick  |  Comment Feed Link 7 Comments  |  No Trackbacks

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Tuesday, July 10, 2007 3:07:46 PM (Central Daylight Time, UTC-05:00)
I love the idea of health savings accounts, but have you ever used one? I had one at my old company, and was trying to save up for lasik surgery. But nobody told me that you have to spend it all by the end of the year, or you lose it. I hadn't saved up enough, so I didn't use it. And I lost it all on January 1st. Yippee.
Tuesday, July 10, 2007 3:08:40 PM (Central Daylight Time, UTC-05:00)
Sorry, I think that was a tangent.
Tuesday, July 10, 2007 3:12:18 PM (Central Daylight Time, UTC-05:00)
Tanya, what you're describing is an MSA account, not an HSA account. Unfortunately (thanks to the Federal Government), there is a lot of confusion between the two. Anyone can setup an MSA account no matter what type of insurance policy you have. You can then, as you describe, use that account to pay for qualifying health expenses tax free, but you lose it after a year.

An HSA account is owned by you, and rolls over from year to year. However, in order to qualify, you have to have a qualifying high deductible health plan. Even if switch jobs, your HSA account goes with you as long as you continue to have a qualifying health plan. You can even invest your HSA funds into stocks or mutual funds, and all the interest you earn is tax free as long as you use it on qualifying medical expenses.
Tuesday, July 10, 2007 3:37:16 PM (Central Daylight Time, UTC-05:00)
Sweet. That's smart for several reasons, not the least of which is being able to pay less for a plan with a higher deductible, if you're someone who doesn't use healthcare services often. Do you know if they give you some kind of credit card to pay it with, or if you have to do complicated billing stuff? And if you get the insurance "rate" for services or pay retail?
Tuesday, July 10, 2007 3:43:19 PM (Central Daylight Time, UTC-05:00)
The answer to the credit card question is "it depends". Most HSA companies either provide you with a debit card, or checks. Most do debit cards, so you can pay very easily. The important thing is to always keep receipts on anything you pay for with your HSA card so you can prove it was a qualifying purchase. Some companies will explicitly block usage of their card at all but certain approved locations.

As for "insurance rate" for services vs retail... that I don't know off hand, and I don't want to provide incorrect information if I can help it.
Tuesday, July 10, 2007 6:58:12 PM (Central Daylight Time, UTC-05:00)
Actually, Tanya was referring to what is known as a Flexible Spending Account (FSA). This type of account allows the participant to set aside money for medical expenses and does require that you use it during the year in which it is set aside. There have been recent changes which can extend the period for using the funds until the end of the first quarter in the subsequent year.
An MSA was a predessor of the HSA. It still required a high deductible compliant plan but did allow rollover from year to year. However, the amount you could set aside was no greater than 75% of the deductible for a family of 65% of the deductible for an individual. The HSA allows much richer deductions and makes provision for greater deductions for those over age 55.
Wednesday, July 11, 2007 8:40:51 AM (Central Daylight Time, UTC-05:00)
Thanks for the correction on the FSA/MSA thing... you're right, I screwed up my TLA's.
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