The Truth about Health Savings Accounts (Note: I've made some adjustments to the original post...in RED)

Today on the Thom Hartmann radio show, I heard some guy say that people who can't afford medical insurance should get a Health Savings Account. That's the same thing George W Bush was saying when he pretended to be concerned about the millions of uninsured and under insured Americans.

Just what planet are they living on?

First of all......a Health Savings Account is NOT medical insurance. It is exactly what it says it is: A SAVINGS ACCOUNT. Anyone who cannot afford to purchase medical insurance cannot afford to put extra money into a savings account.

Second......in order to qualify for a Health Savings Account, you must FIRST PURCHASE MEDICAL INSURANCE. That's right, you must purchase high deductible medical insurance, in order to open up a Health Savings Account.

Third......once you have a Health Savings Account, you pay for all your medical expenses out of that account up to the amount of your deductible. If you don't have enough money in that account, you pay for it out of your pocket.

Fourth......your medical insurance kicks in after you've used up your deductible. If your deductible is $2500, you must pay the first $2500 from the money you've put into your Health Savings Account (or from your own pocket, if you don't have enough money in that accout).

Fifth.....Most people open up Health Savings Accounts (HSA) so they can deduct it on their tax returns. The money they put into their Health Savings Account is pre-tax dollars. So if you don't need the deduction, there is no need to open up an HSA. You might as well just pay for high deductible medical insurance and pay for your medical bills out of your pocket. It's the same thing, basically. Plus, you don't have to put any money in your HSA if you don't want to. You can put in between $1 and the maximum allowed for the year ($2900 in 2008).

My husband and I are self-employed. Medical insurance is expensive, but thankfully we are healthy. This is why a Health Savings Account works for us. Here's how it works:

We purchased a high deductible medical plan ($2500) for $622 a month, for 2 people. This is for medical only; we do not have dental or vision coverage. We can each put up to $2900 annually into a Health Savings Account, which is tax deductible, and can be carried over from year to year. Because we are both over 55 years old, we can each add an additional $900 this year. All of our medical bills are paid from this account. When we retire, we can withdraw money from this account, much like an IRA.

Since our medical expenses have been below $2500 each year, we have paid for everything out of our HSA. But because we have medical insurance, our insurance company will sometimes make adjustments, and we get our services at a reduced fee. This does not apply to dental or vision.

The reason a Health Savings Account works for us is twofold: 1) since we are self-employed, we are able to deduct the amount we contribute to our HSA ($7600 for 2008. It will be raised $8000 in 2009); and 2) we are healthy, so our medical expenses are not high.

The total cost we will pay this year is $7467 for our high deductible insurance, and $7600 for our Health Savings Account. That's $15,067. And this is considered cheap, because we don't have any pre-existing conditions. How can someone making minimum wage afford this? How can a family with children afford double this amount? How can someone with medical problems afford this?

Basically, a Health Savings Account is a tax-deductible savings account that people can use to pay their medical expenses. But it is not medical insurance. You must have a high deductible medical insurance policy in order to qualify for a Health Savings Account.

The next time you hear someone say that a person without medical insurance should get a Health Savings Account, ask them to explain it to you. I don't think they can, because they probably don't understand it.

Ask them "Just what planet are you living on?"

Health Care Responses

I took the advice of "whipcreamy", one of the followers of my blog, and checked out other blogs (in hopes of drumming up more interest). I posted my 'Health Care...is it a right or a privilege?' piece on 2 liberal blogs (salon.com and thomhartmann.com) and one conservative (anncoulter.com). I received about 10 - 15 responses on salon and thomhartmann, and they were pretty much the same as those on my blog. In 8 hours I received 48 replies on anncoulter. Needless to say, I was shocked....SHOCKED....at how angry and mean they were. Here are some examples:

You don't even know if she has or needs health care or not. You, my friend, are looking at the world and searching for problems to complain about. You are a liberal troll. Go play somewhere else. I don't want to go to your site or hear any more of your stupid views.

You call yourself "progressive" which is another word for socialist. Most of us don't like socialists.

Doesn't anyone understand that those without insurance actually have the gold-plated, Cadillac Plan?

While I support your cousin's freedom to live her life and "pursue happiness" as she sees fit, I also feel that because of her life choices she has decided to be a "non-contributor" to the general well-being of society.

Excellent answers...conservatives.It was just a twit questoin..made al the more twittish by the screen name 'progressive" (is that another way to say "moronic usefull idiot of the communist"?)

If your cousin thought that health care insurance was important, she would figure out a way to get it. She has assets, has a job, etc. For the vast, vast majority of people in this country, it is just a matter of setting priorities. If she doesn't have it, obviously it is not a priority. Why should I pay for her insurance through my taxes?PS--Does she use Alar on her apples?

Given what you have posted, the answer is simple; If your cousin doesn't have health insurance, YOU should pay for it. If you do not wish to, you are a hypocrite for not setting a good example in supporting your own ideology

I have the right to tell Ms. Progressive that I've passed craps with more intelligence than liberals

I'm a little bummed right now. I didn't realize people could me so mean. Plus, they all missed the point. I was merely describing a situation that many Americans face today. Not everyone has the same potential in life to turn their apple picking job into a huge money making franchise. Yes, there are pople out there who are lazy and want to take advantage of everyone, and take hand-outs. But there are people who try really hard, but still can't get ahead. Not everyone has the potential to be a rocket scientist. And....we still need people to pick our fruits and vegetables for us. Someone has to do it. And if they're doing something constructive to help put food in grocery stores so we can buy it for our families.....well, they should have the right to have affordable health insurance. I never, ever said that my cousin should get it for free.

Am I wrong in my beliefs? Do those people sound mean and angy, or am I being a little sensitive?

Health Care......is it a right or a privelege?

The other day I was listening to Thom Hartmann's national radio program on Air America. He and a guest on his show were discussing health care. Thom believes that health care is a right and not a privelege. He was explaining how people on minimum wage cannot afford health care. The guest said that people earning minimum wage were people just starting out in the work force, and if they wanted to make more money, they should just get another job. Thom's argument was that not everyone is capable of doing that. Not everyone has the same chance in life.

That made me think about my cousin. I'm pretty certain that neither she nor her siblings will ever read this blog, so I'm comfortable telling this story.

I have a cousin who is the sweetest, kindest person you could ever meet. When were were growing up, my siblings and I used to love to listen to her speak. She's from the mid-west, and we loved the way she said "yaw" for yes, and how her soft voice exuberated a sense of innocence. She's in her late 50's now and has always lived on the property homesteaded by her great-grandparents. She has her own home on the property, as do most of her brothers and sisters. She's a hard worker, and has always taken care of her family. She is caring and kind. She doesn't have much, but is proud of what she does have. She has a high school degree, but I'm not sure if all of her siblings graduated from high school. I do not know if she's ever had a job that required any skill above minimum wage.

A few weeks ago, two of my sisters and I visited the small mid-western town where my parents grew up....the town where my cousin still lives. In the summer and fall, she picks apples for a living. As I sat talking to her, listening to the same sweet voice, I wondered if she had health care. I doubt she does. She doesn't work for a company that provides it, and I'm pretty sure she cannot afford to pay for it from a salary of picking apples.

My cousin is not lazy. She tries as hard as she can. Even though the Declaration of Independence says that all men are created equal, we are not. We have no control over the situation we are born into. Either by the fortune or misfortune of our birth, we are not all equipped with the same skills for survival.

I would like to hear the guest on Thom Hartmann's show tell my cousin to go out and get a better paying job, so she can afford to pay for health care.

What do you think?