Let’s consider some real Healthcare Reform
There is plenty of discussion about healthcare reform throughout the country these days. The bills currently under discussion in Washington thee days are over 2000 pages of ‘reforms’. In reality, the main emphasis these ‘reforms’ is who will pay the bill. There are some true reforms around the edges of the bills, but very little of real substance.
Rather than impose a government run healthcare plan on everyone, which many opponents claim will actually increase demand for healthcare (after all it’s ‘free’, right) and subsequently the cost; true reform would emphasize personal responsibility which would reduce demand and cost throughout the healthcare system. The current system which has developed over the years has no responsibility anywhere in the system. The three main players in the healthcare system:
The payer (usually the employer)
The provider (usually a doctor or hospital)
The patient (you)
all have different and opposing interests. Very rarely do all three parties get together in the same room and talk. The payer wants to pay as little as possible, the provider wants to get paid as much as possible for as little as possible, and the patient wants as much care as possible. These interests are diametrically opposed, so there is not much communication between the three factions.
No matter what happens in Washington concerning healthcare, you need to provide for your family’s healthcare One way to make sure that you are able to get the healthcare that you and your family need is through a Health Savings Account (HSA) also known as a Medical Saving Account (MSA) coupled with a high deductible, catastrophic healthcare insurance policy. There are many advantages to having an HSA in your own name:
• You have personal responsibility of your own health
• You can control your healthcare costs
• There is a true incentive to live a healthy lifestyle
• You can visit the providers that you want to visit
• The account is funded through tax advantaged dollars
• Your employer can contribute to the account
Here’s an example of how an HSA works:
You set-up an HSA through a ‘qualified’ trustee/custodian. These are banks, credit unions, or other entities set-up to handle an HSA. You must purchase a High Deductible Health Plan (HDHP) in conjunction with the HSA. Generally, these plans are much less costly than traditional insurance plans. The money you save on premiums may be enough to fund the HSA portion of the plan, which should be in the amount of the deductible of the HDHP. Routine medical costs are paid for through the funds in the HSA. Normal doctor’s visits, prescription drugs, chiropractic visits, licensed acupuncture treatments, massage therapy, and nutritional supplements can all be paid for through an HSA. If the deductible of the HDHP is met, (and the funds in the HSA are exhausted) the insurance portion kicks in to pay for medical expenses. If there is money remaining in the HSA account, that money can be rolled over into the next year, to help fund the next year’s HSA.
There is a true emphasis on preventative healthcare through the availability of alternative car and nutritional supplements paid for with pre-tax dollars. The incentive to staying healthy is real because you are spending to own money on healthcare. Personal responsibility is also emphasized, because you are spending your own money. Any money not spent from the HSA is carried over, and grows tax-free, similar to a self directed IRA. If executed correctly, an HSA can save money and actually provide you with better overall health and the peace of mind that you are covered in the event that you require extensive medical treatment.
Health care is something especially in America that you have to make sure you are in some way covered as the costs will be direct to the money in your account and if the problem is serious then the money in your account will be drained very quickly and end up in debt quickly. Applying for health insurance can be an expensive essential depending on your circumstances with your age and family members added to the policy to it will get expensive and not be fully coverage on that policy. The focus has to go back onto helping people who need health care and not how much money can a person make as human life is considered more valuable in this time compared to generations ago and work has to be done to provide health to people who need it at a price they can afford.
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