Social Security Reform, Part XXIV
Representative Paul Ryan (R-WI) website says: Susie and Tom have two children and need to purchase health insurance. Tom makes $25,000 a year, and Susie stays at home with the kids. They hear about the tax credit provided for by this legislation and find out they would be eligible for a $3,000 credit ($1,000 for each adult and $500 for each child, with a maximum of two children.) They shop around and find that one insurer can give them a HDHP plus an HSA for $3,300 a year. They purchase it and get an advance credit based on last year’s tax return. They would pay their portion of the monthly premium ($300 per year), and the health insurer would be reimbursed directly by the U.S. Department of Treasury for its portion ($3,000 per year).
This is different that what President Bush proposed. This is President Bush’s proposal the first time he ran for President before he figured out that HSA insurance could cost much less than $3,000 a year for a family. The President suggested limiting the HSA deposit to $1,000 a year but these Republicans don’t understand why he did this.
Here is a real example: A 30 year old couple and 2 children in Des Moines, Iowa.
HSA Insurance annual cost: $1,578.96
HSA Deposit: 1,721.04
total cost $3,300Crazy Democrats said nobody would enroll and this was repeated by the press. I ask you, would you let the government pay for your health insurance if they gave you $1,721.04, tax free, in your HSA? Sure you have to pay $300 a year but who cares, it’s going right into your own HSA.
The big part of this legislation, if you are not poor, is the deductiblity of HSA health insurance for all Americans. There will be no need for people to purchase insurance from their employer any longer.
If you have HMO stock I would be selling before the bottom drops out.
Posted by Z Woof
06/02/2005 at 12:48 PM
Cat,
Speaking of medical stuff - how are you doing? Is the walking getting any easier?
I hope so! Do you still have to watch bacon, lettuce, and tomato sandwiches?
Posted by Phoenix
06/03/2005 at 10:20 AM
OCM
Don’t document that you may “feel better” until State Farm pays off.
1st you are not a doctor so you don’t know if you are feeling better.
2nd good job on your baseline MRI’s.
3rd welcome back, we all missed you.
Posted by Z Woof
06/03/2005 at 12:11 PM
Cat,
All I hope for is that you can get around painfree and without the walker. How wonderful it will be for you not to have to even think about all of this in a few months!
Posted by Phoenix
06/03/2005 at 05:56 PM
OCM,
We are in Colorado with HSA coverage in the under 65 year old market. If you read the story above we are mentioned in the last paragraph.
Yes, I know Blue Cross and other large insurers fought HSA legislation all the way. But they lost big time. Now all of them are coming out with HSA plans because they have too. This doesn’t solve their problem. Blue Cross has millions of people on group health employee plans. Let’s think about what this legislation does. Blue Cross knows that employees are not going to pay $400 a month at their job, which costs the employer $400 a month too, if they can get the HSA individual coverage and their cost is only $300 a year (Like the example in my first post). So young healthy people leave the employer pool (these people are called assets) and old sick people (these are called liabilities) remain on Blue Cross employee plans. I call it the Catalysmic Collapse of employer based health insurance.
Then HSA salespeople like me will make insurance for a family of 4 cost $3,300 to get the full $3,000 from the government. In Colorado Springs I have an exact example on how to do that. A 30 year old couple and two children can get HSA insurance for $3,290 per year. But in order to get the premium that high I had to add on—$100 deductible for accidents on the entire family. Plus, $100,000 in life insurance on the huband, $20,000 in life insurance on the wife, $10,000 in life insurance for the children. Plus, the husband gets accident disability insurance that pays for 52 weeks. Now the family will pay $300 for the year and the government will pay $3,000 directly to our insurance company and guess who get’s the commission? Don’t forget renewals.
Study for a day and take a test then you too can give people insurance that the government will pay for and you get paid. My wife, my boss, appoints Colorado agents. I suggest going to Burger King because all those people can get the government insurance with this bill. Just find poor people and say sign here.
Help the poor and make a bundle. It would blow your mind if you knew how much you would make on that Colorado family above.
Posted by Z Woof
06/04/2005 at 11:40 AM