Interesting story on Universal Health Savings Accounts and how it might be what Obama really wants, he just might now know it.

The time has come to propose an expansion of HSA and make it the universal foundation of American healthcare. Universal HSA should come with a mandatory major medical indemnity and prescription plan. These will be the same plans offered to Federal and private-sector employees through their employers. These are also known as ERISA plans (Employee Retirement Income and Security Act) which national employers choose in order to avoid compliance issues in the 50 individual States. Any funds contributed to the HSA after the payment of the indemnity premium will be saved for future needs be it co-pays, co-insurance or what the accountholder deems necessary. The savings accumulated may be left to account holders heirs without estate taxes.

Believe it or not there are still a lot of banks and credit unions out there that DO NOT offer a Health Savings Account program for deposits. Some banks even send their deposits to other banks.

“HSA Clearing Corp has been offering a low cost turn-key HSA program since 2004 and our program offers a positive ROI for our clients,” said Tim Morales, President of HSA Clearing Corp. “Offering HSAs is a great way to grow your deposits and build your customer base. Using our proven turn-key HSA solution banks and credit unions are ahead of the game from the start. Buying and maintaining a special HSA software program only costs them money and they have to pass along set up fees, monthly and annual fees to the customer. Late last year we saw a major core processor unload their platform because it was not cost effective. Our customers have found that whether they open 50 or 5,000 HSAs in a given year they’re still way ahead as they do not have monthly fees to pay out. These institutions came to us because we can get them up and offering HSAs in a matter of days without spending a lot of time and money on a costly integration program.”

“Health Savings Accounts are making a difference to millions of Americans across the country,” Morales said. “HSAs allow businesses, families and individuals to purchase affordable health insurance coverage and put away pre-tax dollars for into their HSA accounts for future health care expenses.”

With all the uncertainty in the banking industry right now we find it shocking that there are so many banks not offering a program designed for HSAs. For more information on this seminar check out HSA Clearing.

Dr. Reece has an interesting post up comparing those who believe in HSAs against those who do not. Of course you know where we stand in this argument.

“Health Savings Accounts reconnect the patient and provider by revealing the true costs of health care services. What we have seen so far is 20 percent to 50 percent decrease in cost utilization. This is because of consumerism – people being alert to true costs. Consumers now shop for health care services, they increasingly use generic drugs, and they ask questions about the necessity of additional testing.”

He doesn’t take any sides, but in the end concludes with a point that seriously favors Consumer Driven Health Care.

I know only one thing. As long as someone else pays the bill, and costs remain invisible to patients, costs will continue to surge.

Found this story called “What You Need To Know About Health Savings Accounts for 2009” which is a bit misleading because it’s more of a testimonial than anything. That being said it’s a good read and explains why an HSA qualified plan was better for this family.

On the other hand if we do not incur any unreimbursed medical expenses, we do not lose the money in our HSA. Money that remains in the HSA is allowed to accumulate tax-deferred and can be withdrawn at any time, but would be taxable just like an IRA, including a 10 percent penalty before age 59.5. In addition, an HSA-eligible participant has until April 15, 2009 to make their contribution.

After eight months, we have:

1. Saved $589.68 in premiums
2. Incurred no claims towards the deductible
3. Contributed $5,800 tax deductible into our HSA

Health Savings Accounts are not for everyone, but it’s an option that should not be overlooked.

Since they stayed healthy the entire year if anything were to happen in the coming year the money they already have in the HSA covers the maximum out of pocket for 2009.

In talking to people “in the know” around Washington we’ve come to find out that the new Democratic government isn’t going to be going after Health Savings Accounts any time soon. Why? For one thing they are gaining popularity each and every day. For another, universal health care isn’t working.

To much fanfare from both right and left in 2006, Massachusetts became the first state in the nation to require all residents to buy health insurance. A new state health insurance clearinghouse was created, with taxpayers subsidizing those who couldn’t afford to buy coverage. Then Gov. Mitt Romney, a Republican, promised that “every uninsured citizen in Massachusetts will soon have affordable health insurance.” Yet just two years later, Romney’s much-heralded “solution” — touted by many as the model for a national program — has become an embarrassing flop.

Instead of making health insurance more affordable, this program has made it more expensive. The law to cover everyone has made up costing everyone an extra 56 percent, but that’s not the worst of it.

Small businesses with more than 10 employees were required to provide health insurance or pay an extra fee to subsidize uninsured low-income residents, yet the overall costs of the program increased more than $400 million — 85 percent higher than original projections. To make up the difference, payments to health care providers were slashed, so many doctors and dentists in Massachusetts began refusing to take on new patients. In the state with the highest physician/patient ratio in the nation, some people now have to wait more than a year for a simple physical exam.

This is clearly not what anyone had in mind and should be a pretty strong indicator to the Obama administration that universal health care has a long, long way to go before it ever works in this country. For now, we’ll take our HSAs.

Another financial institution has started offering HSAs. Again, we ask, what took you so long?

ATLANTA, Dec. 16 /PRNewswire-FirstCall/ — SunTrust Banks, Inc. (NYSE: STI) announced today a turn-key Consumer-Directed Healthcare (CDH) solution for employers seeking to take control of their healthcare costs. The SunTrust Health Savings Account (HSA) combines administrative and financial components, including a healthcare payment card, integrated account management, online healthcare tools, and HSA investment options, offered through a single trusted custodial partner.

“SunTrust is committed to providing solutions that assist our clients in establishing a sound financial foundation,” said Gary Plourde, Senior Vice President, SunTrust Institutional Investments Director of Sales. “We recognize that managing the rising cost of healthcare while achieving sustainable business growth is one of the greatest challenges businesses face today. In an effort to meet the demands of this dynamic market, SunTrust has launched a turn-key HSA product designed to accommodate the business needs of any organization regardless of size.”

Health Savings Account (HSA): Do I Lose It At the End of Each Year?
By Daryl Kulak

The Health Savings Account (HSA) is an amazing tool to reduce
healthcare expenses and insurance costs.  But do you lose it at
the end of each year, like with a Flexible Savings Account (FSA)? Read the rest of this entry »

Consumer Managed Health Care and Health Savings Accounts (HSA’s) May Be the Wave of the Future

By Christopher Beard

The need for reduced health care cost brought about the formation of Health Saving Accounts about four and a half years ago and their use has grown in use by American consumers exponentially. Most consumers will agree that health insurance is too expensive especially if you have a family to cover. Deciding what policy makes the most sense can be confusing regarding co-pays and deductibles, and features because the ones with the most features and lowest deductibles cost the most so you are left with the dilemma of determining how much will you actually use if you pay for all the bells and whistles. This is where the Health Saving Account can make it possible to get great coverage with a reduced premium and have a reserve expense account for when a major medical expense does occur. Read the rest of this entry »

Good article in the Journal Times out of Racine, Wisconsin that explains how HSAs can benefit employees and employers in a real common sense fashion.

Like many people, maybe you’ve read and heard about health savings accounts, but may still be asking: What exactly are they?

In a nutshell, they are an alternative to traditional health insurance plans that can offer certain tax advantages and the potential for added control over health care dollars and expenses. With a health savings account you can pay for current medical expenses, and save for future qualified and retiree health expenses, all on a tax-free basis.

Colleen King covers the question of whether married couples should open one Health Savings Account or two.

the question I want to address in this article is one aspect of setting up the actual HSA. When a family has an HSA eligible plan, should they set up one HSA or two? Well, when you set up an HSA for your family there can only be one account holder listed, but the money in the account can be used for all members covered by their family health plan.

Being single this is something that never occurred to me, but a married couple could stash away quite a bit of money with two accounts. Definitely food for thought.