Time to reconsider Health Savings Accounts. In the October 29, 2007 issue of Newsweek, there was an article outlining the advantages of an HSA.

The Newsweek article suggests finding a good HSA provider that offers an investment account and not just a bank savings account, which is fine if you believe that you can out-guess the market.

• High Deductible Health Plan (HDHP)
• minimum deductible must be at least $1,050 (self-only coverage) - 2006
• annual out-of-pocket (including deductibles and co-pays) for 2005 cannot exceed $5,250 (self-only coverage) - 2006

Save all the receipts to submit later to get the money back. Sounds like an administrative chore. Is it worth the effort for us, given that we are in good health and rarely incur any medical costs, even for over the counter medication. We usually don’t replace eyeglasses or contacts very often, but perhaps we should.

As someone pointed out recently, “no body expects car insurance to cover routine maintenance. Why would you expect your health insurance to cover routine healthcare costs?”

Who can benefit and how?

HSA in California for individuals

Aetna, Inc.
Blue Cross of California - *Individual PPO 3500 (HSA Compatible) Plan
Blue Shield of California
John Alden Insurance
Kaiser Foundation Health Plan
Lumenos, Inc.
Nationwide Health Plans

Learn more…

Newsweek article October 29, 2007

U.S. Treasury - Health Savings Accounts (HSAs)
Health Savings Accounts (HSAs) were created by the Medicare bill signed by President Bush on December 8, 2003 and are designed to help individuals save for …
www.treas.gov/offices/public-affairs/hsa/

U.S. Treasury - HSA Frequently Asked Questions
A Health Savings Account is an alternative to traditional health insurance; it is a savings product that offers a different way for consumers to pay for …
www.ustreas.gov/offices/public-affairs/hsa/faq_basics.shtml

Health savings account - Wikipedia, the free encyclopedia
A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible …
en.wikipedia.org/wiki/Health_savings_account

ehealthinsurance.com

hsainsider.com - Newsweek suggests
HSA Insider - The Nation’s Leading Authority on Health Savings …
The HSA Insider is the Internet’s leading destination for information related to Health Savings Accounts. Inside the Insider:. HSAs for Individuals …
www.hsainsider.com/

I’m all for affordable health care, but how do we get there from here?

Just got a note from Blue Cross - my healthcare coverage provider. I don’t want my premiums to go up, do I? This coverage for everyone is all well and good in theory, but I might want to reconsider supporting an idea that is going to cost me more money. We don’t want to rush into this. They - Blue Cross, are “partnering” with the Coalition for Responsible Healthcare Reform, and I can join at no cost - registration activation code provided.

So I checked it out. The Who We Are page is a loooong list of businesses, business owners, insurance agents, but no mention of Blue Cross (it does say partial list).

This has been a huge festering problem for years. If it has Blue Cross all riled up, there must be some serious action going on. Not like them to send out extra paper.

BTW - we moved and I wanted to change my address. I called but after following the automated phone system for several minutes, I was informed that there would be a 19 minute wait for a customer “service” rep.

Fred Hickey, in his recent newsletter said his healthcare had gone up 20% this year, after a 21% increase last year. That is now his largest single personal cost item. He lives in New Hampshire. It is only because we live in the Bay Area with high housing costs that healthcare is a close second, rather than the biggest item for us.

Even Chris Dodd, the presidential hopeful, is into affordable healthcare.

The Dodd plan will create a health insurance marketplace called Universal HealthMart that is based on, and parallel to, the Federal Employees Health Benefits Plan (FEHBP).

Where all this is going isn’t clear. But at least there is talk…

Medicare

The hospital insurance is available at no additional costs to you, as you have already paid for it as part of your social security taxes while you were working.
http://www.investopedia.com/articles/retirement/07/tips65plus.asp

To learn more about health care, see Fighting The High Costs Of Healthcare.
http://www.investopedia.com/articles/pf/06/healthsavingsaccount.asp

Even if you will not retire at age 65, you may still want to consider signing up for Medicare, as it may cost you more if you sign up later.

For additional information on Medicare, see SSA Publication No. 05-10043.
http://www.socialsecurity.gov/pubs/10043.pdf

MediCal

you and/or your insurer

Andy Kessler: Email exchange with Milton Friedman
http://www.andykessler.com/andy_kessler/2006/11/email_exchange_.html
comment - Posted by: Yaser Anwar | November 17, 2006 at 05:21 PM

http://www.typepad.com/t/comments?__mode=red&id=25485674

Unless consumers have access to robust information about pricing and performance, mechanisms like HSAs and HDHPs won’t really impact cost so much as finance it, merely guiding how the money flows.

Even Regina Herzlinger, a renowned conservative Harvard-based healthcare economist, challenged Prez Bush on this. “Health savings accounts are being touted as a way to control costs, and I very much doubt that claim.”

Individuals with high-deductible insurance plans (HDHPs), which are mandatory with health savings accounts, are “more likely than those with traditional medical coverage to have difficulty paying their medical bills. 49% of consumers with deductibles above $500 per year wound up with outstanding medical debt, vs. 32% with regular coverage.” (source: WebMD)
http://www.webmd.com/content/article/100/105428.htm?printing=true