New rules enable healthy savings (HSA expanded by Congress)

[rodeodance]

umm.. so many things passed by last Congress. This is new to me.

It is a rah rah article.

http://news.yahoo.com/s/nm/20061223/bs_nm/column_finance_dc

New rules enable healthy savings

By Linda Stern Sat Dec 23, 1:23 PM ET

WASHINGTON (Reuters) - Health Savings Accounts are a great deal, and they are about to get even better. The 109th Congress, in one of its final acts, expanded the tax breaks that are linked to these accounts.


The new rules, which go into effect January 1, 2007, will make it easier for workers and their families to build a sizable health-care nest egg to see them through the high-health-care consuming retirement years. But you have to know how to make the best of them.
..........

To really appreciate these accounts, you need to adjust your attitude a little and accept that you will be paying more out of pocket right off the bat. HSAs have high deductibles: In 2007, the minimum deductible for a qualified plan is $1,100 for single coverage and $2,200 for family coverage. They've been criticized as unaffordable for folks who live at the financial edge and don't have the extra cash to meet their deductibles.

[annabanana]

1. In order to "build a sizable" ANYTHING "nest egg"

You have to have "sizable" spare change at the end of the month to put in it. It's a hell of an assumption to make about anyone in today's economy.

[Robbien]

2. The people in the upper middle classes who are "comfortable"

will be helped a bit by this. Of course the rich are helped.

Having extra cash to meet the deductible is just the first step.

Aw heck, it is best to just assume all bills passed by this congress does not have the majority of Americans in mind.

[katsy]

3. But think of all those "beautiful minds"

that get to have plastic surgery tax free. The deductible will is a piece of cake.

[depakid]

4. Just another tax scam for the wealthy

that actually weakens the American healthcare "system" while plunging the country further into debt.

Another brilliant lose/lose piece of Republican policy.

[Faygo Kid]

6. Exactly. Another tax shelter for those least in need of it.

I am sure that downsized moms and dads who can't make ends meet now are just thrilled that they can stash away thousands of dollars they don't have tax-free. What a scam.

[depakid]

7. It's worse than that

There are numerous reasons why HSAs will cause much more harm than good:

* The overwhelming majority of America’s health care costs are spent for people with major illnesses and disabilities and during the last stage of life. High-deductible insurance policies will have no impact on those costs.

* High deductible insurance policies, however, deter people from spending the first-dollar costs needed for primary and preventive care. It is this care that is most important for protecting the American public’s health and avoiding the spread of detectable illnesses.

* As the wealthy who are healthy leave traditional insurance and purchase high-deductible coverage with HSAs, those left with traditional insurance coverage – less wealthy Americans and those who expect to need health care, including those with chronic health problems – will be forced to pay skyrocketing premiums because traditional insurance pools will have higher and higher per capita costs.

* HSAs will drain critical federal resources needed to strengthen the health care safety net, such as Medicaid and the State Children’s Health Insurance Program (SCHIP).

http://www.commondreams.org/news2006/0130-01.htm

[Lydia Leftcoast]

8. You have clearly stated the reasons why I don't have a HSA,

just a high-deductible insurance plan, which costs too much already.

[sam sarrha]

5. like the Reagan IRA that was gona make ya a Millionare by 40.. they cant let it alone

[Vinca]

9. You have to be able to afford the insurance to get the account.

If people could afford the insurance, there wouldn't be a problem in the first place.