Need a little help on health care debate!

[Milo_Bloom]

I have been having a back and forth with a friend on Facebook, after a posted a status update stating that " No one should die because they cannot afford health care, and no one should go broke because they get sick. If you agree, please post this as your status for the rest of the day."

The person came back telling me basically how they wouldn't be able to survive under the health care reform laws because their HSA would be outlawed and their HSA is the only way they can afford their medication and monthly visits to a specialists for their condition.

To make a long story short... I said that HSA's are a scam, meant to make people gamble on their health.

I explained that they NEED to be outlawed because they force people into high deductible plans, essentially encouraging them not to seek preventative care. Further, many people who choose these plans because of monthly savings are unable to put the money to make them effective and are unable to afford doctor visits when they are sick, due to the high deductibles. His retort is his expenses have never been more than $1300 in a year even with monthly visits to a specialist and daily medication for a chronic condition.

I actually don't believe those numbers. If I saw a specialist monthly I would be paying well over $3K without medication. (maybe this is just los angeles prices). But, that aside... I feel like I am missing some other negative aspects of HSA's.

I know when I was working to bring in a health plan for the company I co-founded I threatened to walk out if they went with an HSA, because after reading the plans I thought they were barbaric, but this was a couple of years ago and I don't remember all the details, besides the forced high deductibles.

Is there some other evil part of HSA's I am forgetting?

[laughingliberal]

1. Last I knew of them-2007

You were limited to saving 2500 per year pre-tax. I don't really see you could buy a lot of healthcare for that. The law was also 'use it or lose it.' If you did not use all the money during the benefit year you lost it.

[sandnsea]

3. I think they allow some roll-over n/t

[Milo_Bloom]

4. That is an FSA

In an FSA (Flexible Savings Accounts) you have to use it or lose it.

in an HSA (Health Savings Accounts) the money accumulates year to year.

Here is my basic understanding of the HSA.

1 - YOu have to take a high deductible plan
2 - You can put up to $3000/yr into a savings account tax free (like an IRA)
3 - You can draw that money out in future years to pay health care costs with no tax consequence.

The concept is you build up money when you are young and healthy and have a nice nest egg for your health problems later in life.

This only works if #1) You don't use health care for many years. #2) You can afford to put the money away. I feel a lot of companies use these plans because they are FAR CHEAPER and that the employees taking these plans are probably doing so because they can't afford higher monthly premiums.. thus, can't afford to put money away... thus have crap coverage and no savings.

Shouldn't this type of scam be abolished? It's like the freakin 6 month ARMs to get people in houses.

[sandnsea]

2. HSA's wouldn't be outlawed

I haven't seen anything about that, although they should be.

Specialists here run from $250 to $500 a visit, and up. Medication can be anything from a $4 generic to very expensive specialty drugs. My highest co-pay is $40 and that's a state negotiated plan.

I really don't understand where people are coming from with these HSAs. They seem to make a little sense for a young single person if the savings could be used for either health care or maybe a down payment on a home. But otherwise, they're the exact wrong prescription for health care reform if health is the goal.

[Milo_Bloom]

5. Are you sure they wouldn't be outlawed?

I know they wouldn't be outlawed as a concept, but wouldn't they essentially be outlawed because the elements that make up the plan wouldn't be allowed?

Aren't there going to be restrictions on deductibles, etc?

These plans often have 5K or 10K deductibles.. I think that type of thing will be outlawed, no?

[eridani]

6. HSAs are a way for comparatively healthy and affluent people to fuck over everyone else n/t

[ejpoeta]

7. i guess they'll find out if something really bad happens and they don't have any money

in their savings account to cover it. I don't really know much about those HSA's, but isn't it kind of like putting money under the mattress instead of in the bank where it can earn interest??

[sinkingfeeling]

8. Going rate to see a specialist here in Arkansas, one of the poorest states in the union, is $245.

I'd almost bet this guy has some other form of medical insurance, perhaps Medicare, that is paying the majority of his bills and he's using the HSA has a supplemental.