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8 Health Care Glossary Items #4
To many a conservative, Health Savings Accounts (HSAs) are a panacea to reducing the cost of health care in the US. They believe that the injection of the free market into health care will bring prices down. How do HSAs work?
Well, HSAs are only available to those who forgo a traditional health insurance plan. Instead, a person would purchase a high-deductible policy that covers catastrophic expenses only. They would then be able to deposit money into their account tax free to use for all medical expenses not paid by the catastrophic policy. Whatever money isn't used would remain in the account year after year. After retirement, the individual can withdraw the money or even will it to a family member.
The problem with HSAs is that they are only feasible for those select few who can afford them. Most Americans cannot afford to pay even the most basic of medical bills out of pocket. As an idea for an entire health care system, they are simply dead on arrival.
Wednesday, April 1, 2009
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2 comments:
I think you are wrong about not being able to afford a health plan.
1) We first had an HMO. Our cost went up to over $1200/mo. Surely, not many could afford that.
2) Second we had a PPO thinking that would limit our costs. Read the fine print. There was a family maximum deductible, but had to be met by two members. So if the family deductible was $8000 (2 members) and the two had $3600 each, a another member could rack up quite a bill. That is what happened to us.
3) We switched to an HSA. Premium is much lower and I put about $500 per month in the beginning. I have to cover the first $3600. The $3600 is a true family deductible. Once that figure is hit, 100% is covered, including medications. My total cost is around $7200 a year. The hospitals are great about setting up payment plans, 0% interest if needed.
Gov't health-care will increase costs and reduce service.
How many people can afford to put in 500 a month? Plus, an interest free loan would still be an albatross around the neck.
Medicare is gov't health care and they have kept costs down through price controls and spend much, much less on administrative costs than a typical health insurance company.
When looking for sites to troll with your propaganda, you should consider blogs that acyually have readers!!!!
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