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I don't see it primarily as a tax dodge... tax fee expenditures are limited to medical expenses until after 65.
it's a tax dodge because it allows the owner of the account to accumulate funds beyond the 5K necessary to maintain a high-deductible insurance plan. it should be capped at 5k if that were its only function. I believe the other tax-advantaged retirement plans, such as the IRA and 401K, allow the designation of medical emergencies for hardship withdrawals. Why not allow those accounts to be used in lieu of the HSAs so that the revenue loss to the government is eliminated or minimized?
it's a tax dodge because it allows the owner of the account to accumulate funds beyond the 5K necessary to maintain a high-deductible insurance plan. it should be capped at 5k if that were its only function. I believe the other tax-advantaged retirement plans, such as the IRA and 401K, allow the designation of medical emergencies for hardship withdrawals. Why not allow those accounts to be used in lieu of the HSAs so that the revenue loss to the government is eliminated or minimized?
Is revenue loss to the federal government your concern here? What about the billions of dollars not paid in corporate income tax because employee heath plans reduce profits and taxes?
I hate having to spend as much as I do on health care with premiums sky high and increasing (mine went up 23% last year) even though I have a high deductible. My expenses last year exceeded my HSA as the insurance I can afford (still over $500 a month) does not cover drugs regardless of deductible.
I suggest you do a little more research before tagging the miserable health care coverage available to many citizens a dodge.
I think it's reprehensible that states are allowed to prevent people from getting high-deductible catastrophic health insurance coverage if that is what they want, or if that's all they can afford.
I live in one of those states. NY doesn't allow purchasing of insurance policies "across state lines". So I'm limited to only those policies that NY allows certain insurers to offer in NY. No company offers a high-deductible catastrophic health insurance policy to individuals in NY. They are available in other states, yes, but New Yorkers cannot buy them.
It isn't limited to health insurance, btw; same situation for homeowners, car, etc.
But it's worst for health insurance. I'm early-retired (too young for Medicare yet) and make "too much" (meaning above poverty level!) in interest income to get the state-sponsored program. Because I don't have a fulltime job, I'm not eligible for a HSA. So I have 2 choices: either pay $12,000+/yr for health insurance, or go without. Since late 2002 I have chosen to go without. I have been lucky, in that my total medical expenditures each year have been less than $5000. I don't fool myself that my luck will last forever, though. I am hoping it will last another 7 years (till Medicare eligibility).
If I could get a catastrophic health policy (in which I'd be responsible for say the first $15,000 or $25,000 and the policy would cover above that) for $300/mo or less, I would grab it. At least then I wouldn't have to worry about being wiped out financially by a major illness. But NY State doesn't allow me that option and I'm sure there are many other states doing the same thing.
Politicians talk on about either "socialized" or "lower cost" health care and never say a word about how states like NY are a HUGE part of the insurance accessibility problem.
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Politicians talk on about either "socialized" or "lower cost" health care and never say a word about how states like NY are a HUGE part of the insurance accessibility problem.
All states that I am familiar with regulate insurance in-state and do not allow individual policies from out of state. When I moved I was forced into a high-deductible policy because it was all I could afford but my premiums were still up 9%, and then after a year there was a premium increase of 23%.
You would think that group coverage would be higher than individual since they are forced to take all regardless of health but I pay more even though I can prove good health and health practices. I would just like the opportunity to buy the same coverage employers buy... even at the Cobra rate it is more coverage for less cost than what I have available to me.
I think it's reprehensible that states are allowed to prevent people from getting high-deductible catastrophic health insurance coverage if that is what they want, or if that's all they can afford.
I live in one of those states. NY doesn't allow purchasing of insurance policies "across state lines". So I'm limited to only those policies that NY allows certain insurers to offer in NY. No company offers a high-deductible catastrophic health insurance policy to individuals in NY. They are available in other states, yes, but New Yorkers cannot buy them...
Politicians talk on about either "socialized" or "lower cost" health care and never say a word about how states like NY are a HUGE part of the insurance accessibility problem.
This is a good example of why so many of us think the answer is LESS regulation, not more.
This is precisely ONE of reasons i'm leaving this corrupt country...
I was very dumb in the first place!
As i get older, i will need more services... I'd rather pay a small insurance tax every month, to have 100% cover, for all my family, no matter how sick i am than let these crooks profiteer on me!
"Richest country in the world", my ass! Richest third world country... LOOK at poverty, homlesness, beggars, "food insecure". Middle class can hardly buy HI anymore...
The trick with this insurance thing is that you NEVER know whether they will cover costs for real. There is a whole fleet of people trying to find a way to refuse you...
If it takes me 5 or 10% more tax each moth to have COMPLETE security, HI, elderly care, paid maternity leave, and a LIFE, i'm all for it.
Meanwhile, Americans can ONLY get poorer and poorer as prices for HI go skyhigh. There coudl be a meltdown.
Quote:
Originally Posted by Skywings
I think it's reprehensible that states are allowed to prevent people from getting high-deductible catastrophic health insurance coverage if that is what they want, or if that's all they can afford.
I live in one of those states. NY doesn't allow purchasing of insurance policies "across state lines". So I'm limited to only those policies that NY allows certain insurers to offer in NY. No company offers a high-deductible catastrophic health insurance policy to individuals in NY. They are available in other states, yes, but New Yorkers cannot buy them.
It isn't limited to health insurance, btw; same situation for homeowners, car, etc.
But it's worst for health insurance. I'm early-retired (too young for Medicare yet) and make "too much" (meaning above poverty level!) in interest income to get the state-sponsored program. Because I don't have a fulltime job, I'm not eligible for a HSA. So I have 2 choices: either pay $12,000+/yr for health insurance, or go without. Since late 2002 I have chosen to go without. I have been lucky, in that my total medical expenditures each year have been less than $5000. I don't fool myself that my luck will last forever, though. I am hoping it will last another 7 years (till Medicare eligibility).
If I could get a catastrophic health policy (in which I'd be responsible for say the first $15,000 or $25,000 and the policy would cover above that) for $300/mo or less, I would grab it. At least then I wouldn't have to worry about being wiped out financially by a major illness. But NY State doesn't allow me that option and I'm sure there are many other states doing the same thing.
Politicians talk on about either "socialized" or "lower cost" health care and never say a word about how states like NY are a HUGE part of the insurance accessibility problem.
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