Health Care Russian Roulette Game
Government needs to get smarter. There are good choices, good mandates and there are government rules that do not make sense. One choice is allowing employers to decide whether to have flexible spending plans, Health Service Accounts (HSA’s) or HRA’s. The fact that HSA’s allow for paying health premiums and the Flexible Spending accounts do not is bad policy. The fact that Flexible Spending requires guessing the right amount to save but you are penalized if you do not use it is bad policy, especially when the HSA allows no penalty and it rolls over.
The controlling of Health Care costs is the responsibility of everyone. However, it should not burden any one entity or person more than other. Therefore, having to pay something should be a fact for everyone. It should not be a choice of whether to have a Health Savings Account (HSA). Regardless of employer size every employee should have a HSA account. Since at some point there are out of pocket expenses there is absolutely no reason to pay taxes on money used for health care costs. This allows an employee to be proactive and build a health care fund non-taxable and as an investment to their future. If an employer wants to add to it they can. It is the employee’s account to manage and to make choices with. Just like retirement is a function for which every employee should be planning. Everyone gets sick at some point or may wish to have an elective procedure. Most individuals are not good at planning and that is where government assists people in making decisions that are best for them.
If insurance companies are making millions and paying high salaries then there is room to shave off the costs to health care.
One option is to have a combination of employers paying into a government sponsored insurance program with a small deductible of $1,500 for individuals and $3,000 for families to be paid out of Heath Savings Accounts is the best way to go. The Health Savings Account should not be limited to the amount someone can pay into it. I advocate for no limit because there are many procedures not cover by insurance such as major dental work or laser eye surgery or there is a sudden illness that causes a spike in costs to the individual/family. An individual should not be held to a percent of their income or a cap on the plan because it only helps the wealthy that would get the service regardless of the tax consequence. It provides for the government, employer and employee to jointly control health care costs.
