Thursday, December 24, 2009

Another Adverse Effect

In addition to the billions of dollars of debt the current administration and majority party is adding to my children with all their free wheeling spending, their is another adverse effect en-route with the new health care legislation.

We currently have what they call a Health Savings Account, or HSA. The HSA is basically a tax free savings account that is used in conjunction with a high income deductible insurance policy. We put pre-tax money into a special account reserved for medical expenses and a much smaller premium is paid towards our health insurance.

This is a winning situation for our employer, who pays a much lower premium and for us, as we pay a much lower amount and put aside money towards future medical expenses. The reason that it is much less expensive is because much of the money spent is need based. A large arbitrary amount isn't spent needlessly just to cover insurance that we may or may not need. But, it is still insurance, so if the need does arise, we will have it paid for and the HSA will pay for the higher deductible.

Here is something nice:
The current health care legislation, which just passed in the Senate, will do away with HSA's.

Since the legislation will be ending high deductible insurance policies, HSA's will go away. According to a Treasury Department Fact Sheet, there are many as 21 million policies which cover up to 40 million people. These will all be done away with so everyone can pay more for health insurance.

Here are some reasons I think they want to do away with HSA's:

- It takes the decision making out of the hands of government and places it in the hands of patients and doctors.

- It takes decision making out of the hands of insurance decision makers (which is soon to be, once again, government) and puts it in the hands of patients and doctors.

- It is cheaper.

Basically, the party which passed the current healthcare legislation is obviously in favor of taking the decision making in your life away and placing it in the hands of government. At least when it comes to your health.

And, they want to go with any plan that costs more money. I think that is just because it is fun to spend money.


DC Le Peau said...

By saying, "current administration" you seem to be implying that the prior administration didn't get our country into any debt.

I'm not going to pretend to understand the ins and outs of the passed health care bill. But as far as the HSA thing, maybe thats why Howard Dean was pushing to reject this Senate bill. Removing HSA's seems to help (i.e. make more money for) the insurance companies.

Speaking of the current administration adding debt, according to the Congressional Budget Office a public option would save about a hundreds million dollars over the fist ten years and hundreds of millions of dollars over the following decade. What are you thoughts on a public option saving money and creating competition?

C and I should have you guys over and we can discuss while I take you in foosball :)

Hope you guys had a wonderful Christmas, please tell the family we said hi.

Jaime said...

Foosball is a good venue for screaming about politics. Sounds like fun!

I don't think their has been an administration that hasn't gotten us into debt for a while now.

DC Le Peau said...

Last one was Clinton! :)

Jaime said...