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.

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 Money that remains in the HSA is allowed to accumulate tax-deferred and can be withdrawn at any time, but would be taxable just like an IRA, including a 10 percent penalty before age 59.5.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.

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)? (more…)

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. (more…)

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.

Here’s some more speculation about what the future holds for Health Savings Accounts under President Obama. Experts seem split as it will all come down to what is considered “meaningful coverage”.

Much will depend on how Obama’s plan for health-care reform pans out, experts say.

Under Obama’s health plan, medium and large employers would be required either to provide a health benefit or pay a fee.

Some industry players say the so-called “play or pay” mandate could lead more employers to offer HSAs-qualified plans as a money-saving option. However, that will depend on the criteria the plans will need to meet to be considered “meaningful coverage,” according to Bakich. (Obama’s camp has yet to define what this means).

The thing is Obama wants everyone with employer based coverage to keep it, so there is no way that those accounts are going away. If other businesses realize what those businesses are saving, the HSA industry should only grow. That’s the idea at least.

Here’s a blogger who gets it, a Health Savings Account pays you stay in shape. If you are healthy you can save a lot of money.

Two things that I am passionate about are living a healthy lifestyle and building wealth.  They are two components of true prosperity.  This is why I really like the Health Savings Account (HSA).

Would you like to get paid to stay in shape?  If you live a healthy lifestyle, you can use that to your advantage to make some real money.  You can do this with an Health Savings Account (HSA).

What he doesn’t say is pay cash, save your receipts. You can reimburse yourself later without the penalty. Hypothetically you could save up enough receipts to pay for a vacation. Quite the reward for staying healthy.

Many folks have what is called an “emergency fund”, money that is saved and only to be used in the case of an emergency. Anyone who has one of these is the perfect candidate for a Health Savings Account and that’s what TheSouthern has recognized.

While the auto or homeowners savings may not dramatically change your world, the potential savings in health insurance could. Assuming good health, a family of four can reduce its premiums from $600 per month to $300 per month by switching from a traditional $25 co-pay plan to a High Deductible Health Plan (HDHP) requiring a family deductible of $4,000 per year. If your emergency fund is already in place, you could switch immediately and save $3,600 annually on your premiums. And it keeps getting better, because when you place those premium savings in a Health Savings Account (HSA) you could save you another $1,000 in taxes. Remember, the deductible goes toward the first $4000 in medical expenses, but your potential savings is $4200 a year. This is worth getting excited about!

Emergency savings fund. Health Savings Account. It’s all the same. One is just tax free.