House And Senate Conferees Will Have To Reconcile Two Bills
- Abortion: The House version includes stricter language designed to prohibit the use of federal funds for abortion coverage, except in cases of rape, incest or when the mother’s life is in danger. That helped appease House conservatives, but abortion was even more of a make-or-break issue in the Senate, so that chamber’s slightly milder language could win out.
- Taxes: The House and Senate bills would fund health reform in entirely different ways. The House bill would tax individuals making more than $500,000 a year and families making more than $1 million. The Senate bill would tax so-called “Cadillac” or high-cost health plans – an idea opposed by labor unions and many House Democrats. The Senate version would also impose annual fees on health insurers starting at $2 billion in 2011 and going up to $10 billion in 2017.
- Public plan: The House bill includes a government-run plan that progressives fought hard to include. Instead of a government-run plan, the Senate version would instruct the federal Office of Personnel Management to contract with private insurers to offer at least two national health plans for individuals and small businesses. One of those plans would have to be nonprofit. Conventional wisdom says the final, combined bill will not include a public plan, but House leaders could seek other tweaks in exchange for dropping the idea. Possibilities include increasing federal subsidies to help low- and middle-income people afford coverage, creating a single, national insurance exchange instead of one in each state, or introducing those exchanges earlier – in 2013, a year earlier than the Senate bill stipulates.
- Medicare Advantage:Each bill would cut funding for the Medicare Advantage program, but the amount differs substantially. The House bill includes cuts of $170 billion over ten years. The Senate bill would trim reimbursements by $118 billion over the same ten-year period. We didn’t mention the potential impact on Health Savings Accounts (HSA) because it is unclear what if anything will change with the final bill. As stated previously, two components of health care in this country that work are Medicare Advantage and Health Savings Accounts. Ironically these are two programs on the chopping block of both pieces of legislation. Very unfortunate how we have come to accept mediocrity in this Great Country.
For more, check out these side-by-side comparisons from the New York Times and Wall Street Journal.
Get quotes for individual/family health insurance in Arizona here. Contact us today at 602-510-7507 to find out how an HSA can benefit you.
IQ Financial Group, llc. is a licensed insurance agency in the state of Arizona. We offer a complete selection of health insurance, term life insurance, disability insurance, long term care insurance and supplement plans to individuals, families, self-employed and small businesses throughout Arizona. We offer the best in Arizona Health Insurance.
© IQ Financial Group, llc.
Two Questions For Anyone Debating Healthcare Reform
I have two questions for anyone considering the healthcare proposals currently being bantered in congress.
Q: Why have we not had one company step up and compete with Medicare in its 60+ years of existence?
A: Because it is impossible to compete with the government. The government does not need to ever earn a profit; they virtually have a never ending supply of capital (taxes). To believe the “public option” would compete with private insurance companies is simply naive.
Q: Name one government program that has been a success?
A: You cannot. Ex: Medicare and Social Security – bankrupt and heading towards a large percentage of the population ready to jump on board. Part of the reason why the government is pushing this new program is to get them out of their previous messes.
This is not a partisan issue, its common sense. Please wake up and consider this logically as opposed to emotionally. This whole debate has been like watching the herd of buffalo follow each other over the cliff.
Get quotes for individual/family health insurance in Arizona here. Contact us today at 602-510-7507 to find out how an HSA can benefit you.
IQ Financial Group, llc. is a licensed insurance agency in the state of Arizona. We offer a complete selection of health insurance, term life insurance, disability insurance, long term care insurance and supplement plans to individuals, families, self-employed and small businesses throughout Arizona. We offer the best in Arizona Health Insurance.
© IQ Financial Group, llc.
Health Care Reform Bills Impact HSA’s
Is your HSA being impacted?
Congress will soon vote on health care reform legislation that could harm the more than 8 million Americans who have a health savings account (HSA) and restrict those who want to purchase HSA coverage in the future.
Starting this week, the House of Representatives will begin debate on the Affordable Health Care for America Act, and the Senate is expected to finish work on its version of health care reform shortly.
Both the House and Senate bills make major changes that would impact people with HSAs:
- Both bills mandate benefit levels for most health plans that could eliminate HSAs as an option.
- Both bills prohibit you from using any money in your HSAs to buy over-the-counter drugs such as allergy medications that you now get without a prescription.
- The Senate bill may place a tax on high-value health plans, so-called “Cadillac” plans, by taxing the cost of such coverage, including employer contributions to your HSA.
- Both bills raise the penalty for the use of HSA dollars for non-qualified medical expenses from 10% to 20% of the reimbursement.
It is important that you take the time to contact your members of Congress and let them know that you depend on your HSA for affordable coverage and the flexibility to set aside tax-free dollars to pay for your health care expenses.
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Get quotes for individual/family health insurance in Arizona here. Contact us today at 602-510-7507 to find out how an HSA can benefit you.
IQ Financial Group, llc. is a licensed insurance agency in the state of Arizona. We offer a complete selection of health insurance, term life insurance, disability insurance, long term care insurance and supplement plans to individuals, families, self-employed and small businesses throughout Arizona. We offer the best in Arizona Health Insurance.
© IQ Financial Group, llc.
Two Steps To More Affordable Health Insurance
There’s no need to wait around on Uncle Sam-he can’t help you anyway. Only you know what’s best for you and your family.
Read entire article by Dave Ramsey.
Get quotes for individual/family health insurance in Arizona here. Contact us today at 602-510-7507 to find out how an HSA can benefit you.
IQ Financial Group, llc. is a licensed insurance agency in the state of Arizona. We offer a complete selection of health insurance, term life insurance, disability insurance, long term care insurance and supplement plans to individuals, families, self-employed and small businesses throughout Arizona. We offer the best in Arizona Health Insurance.
© IQ Financial Group, llc.
You Can’t Afford A Plan With Copays!
Why do insurance companies offer plans with copays? The same reason McDonald’s packages fries and soda with their sandwiches. The reason is because the added features cost very little but they are able to charge significantly more for the perceived value.
Total Cost – Office visit
Let’s take a look at a typical office visit with both a copay plan and a plan with no copays
| Copay Plan | PPO Plan (no copay) | Difference | |
| Cost of office visit | $25 | $65 | $40 |
| Monthly Premium | $550 | $325 | $225 |
|
# of office visits to make up the difference |
5.25 visits/month | ||
Illustration assumes PPO plan with $25 office visit copay and a PPO plan with no copay but a discounted rate for the same office visit.
Result: The plan without copays will give you $225/month in premium savings. This savings can be used to pay the difference for 5.25 office visits per month. If your family does not have more than 5 office visits every month you are spending too much!
Our Quote Engine allows you to view both types of plan so you can do your own comparison. If you have questions along the way contact us.
What is a Health Savings Account (HSA)?
A Health Savings Account (HSA) is a tax-qualified account combined with a low premium-high deductible insurance policy. HSA’s provide a consumer driven approach to managing your healthcare. HSA’s are designed to encourage the participant to take control of his/her healthcare decisions by building a reserve to fund first dollar medical expenses.
If you stay relatively healthy, (73% of Americans have less than $500 in out of pocket medical expenses each year) the account grows and can eventually be used for other purposes. If you have significant medical expenses you have a reserve of dollars to assist in meeting your deductible. Your out of pocket exposure on the high deductible plan is typically much less than that of traditional copay plans.
Following are some features of an HSA:
Reduce Health Insurance Premiums
By purchasing a high deductible plan you can cut your premiums by as much as 30-40 percent over an employer group or traditional copay plan.
Reduced Taxes
Contributions to an HSA can be deducted from federal and in some cases State income tax. Contributions are not subject to withholding, estimated taxes, or other employment taxes such as FICA.
Earn Tax Free Interest
All interest, dividends, and capital gains earned in a Health Savings Account are tax deferred. When used for qualified medical expenses funds from a HSA are tax-free. Any unused funds in a HSA continue to grow in your account. As your account grows, additional self-directed options such as CD’s and mutual funds are available.
Secondary Retirement Account
After age 65 the 10% penalty for non-medical withdraws goes away so the remaining funds can be used to supplement your retirement. Money left in the account after age 65 continues to accrue tax-deferred and can still be used tax free for eligible expenses.
You choose
Pre-tax HSA dollars can be used to pay for services not covered by traditional health plans. Some examples are laser eye surgery, dental, eyeglasses, chiropractic, acupuncture, kids’ braces, long term care premiums, and more. For a more extensive list of covered items see HSA eligible expenses.
Get quotes for individual/family health insurance in Arizona here. Contact us today at 602-510-7507 to find out how an HSA can benefit you.
Third party to manage your purchases at the grocery store!
Third party- noun - One other than the principals involved in a transaction: example: I pay rent to a third party, not directly to the landlord.
In America we do not have third party participation in any other purchases of major services or products… why do we want it in our healthcare decisions?
Actually it is not just a third party, we actually have…
Third party – Employer deciding on plan benefits and premium offered.
Fourth party – Provider network setting the price doctors and hospitals charge.
Fifth party – Medicare federal government setting the price doctors and hospitals charge medicare patients.
Is it any wonder costs are skyrocketing with all of the decisions being made for the consumer rather than by the consumer?
Let’s look at some examples of other purchases we make on a daily basis without help!
Grocery store:
STORE OWNER decides what to stock on the shelves and at what price.
YOU decide what to buy and how much you are willing to pay.
Gas station:
STORE OWNER decides how much gas to make available for sale and at what price.
YOU decide which station has the best price and how much you will buy.
Auto insurance:
INSURANCE COMPANY sets price and terms for their policy and has to make sure they are competitive with other companies offerings.
YOU decide which features and benefits you want and who has the best price. You then deal direct with service providers for your day to day maintenance.
Healthcare is the only major area of the US economy that does not have the consumer directly involved in a free market. This is why the healthcare system is caving in on itself, with ever increasing cost and reductions in benefits.
We need a healthcare system that is consumer driven!
Get quotes for individual/family health insurance in Arizona here. Contact us today at 602-510-7507 to find out how an HSA can benefit you.