The IRS Deductions Blog

Posts Tagged ‘deductible’

Question: I’m just curious if any of you have had an HRA or an HSA thru your company with a High Deductible Health Plan?

We are just starting an HRA for one of our divisions (free grant money from the government!) and everyone seems really excited about it. HRA-employer puts money in for them, no wonder why. If a company uses a HSA (Health Savings Account), then the employee typically puts most of the money in the account, but it can be rolled over from year to year and job to job and it earns interest (hopefully!) if you don’t use it all each year for your deductible.

They say this is the new way in health insurance, but in my part of US (Northeast), it hasn’t caught on too much yet. HMO’s are still the way most companies around here are insuring their employees.

Bottom line-have you ever had one or both of these types of accounts, and what did you think of it? Better than an HMO or not?

Thanks in advance!

Answer: I designed an HRA plan as an option for a Fortune 500 retailer. You can roll over your balance in an HRA too. There is no advantage to the employer in offering an HSA except that you don’t have to make any contributions. You have to be very careful when you also offer a medical Flexible Spending Account. To help alleviate this, I designed the plan so that reimbursable expenses under the two plans were mutually exclusive. The only way to really save $$ on these plans is to make it a full replacement, which essentially disadvantages the chronically and seriously ill. Often, preventive care is always covered at 100% regardless of the deductible. Rx drugs may also have to be handled separately. With HMOs you have virtually no design freedom and you are shackled to state insurance regulations. If you have at least 200 employees, you should self-insure with a single option and buy stop-loss coverage. You can then rent a network to get the physician discount. This is the best way to go

Items on Amazon Right Now for High Deductible Plans:

Bay Area’s hospital costs rising to top in California, but superior care isn’t guaranteed

Soon after her colonoscopy, San Francisco resident Mary McClung received a bill from California Pacific Medical Center for $4,871. The amount fell within her high insurance deductible, leaving her responsible.

Compare High Deductible Health Plans

Question: What is the point of a health insurance plan if you never met your deductible?

I am 22 and applying for my first health insurance. I do not need much medical services, and want a low affordable premium. However, when I look at sites such as Blue Cross, it seems that low premiums go with high deductibles. I don’t think I would ever meet the yearly deductible, and thus, cannot get any health services covered. So what is the point of such a plan? Thanks.

Answer: That’s a fair question and, to be honest, shows how “differently” people consider health insurance from, say auto or fire insurance. Here’s the question for you to consider:

Do you want health “insurance,” or “health care financing?”

“Insurance” helps you pay for unforeseen expenses that you can’t handle yourself (like, say, that $87,000 hospital/surgical bill after the car wreck, etc.). “Health care financing,” like anything else you usually finance, lets you “make payments” to buy things that you don’t want to pay for all at once (like, say, that $2300 big screen HDTV).

Here’s a few tips:
1. Buy a plan with a big deductible ($2,500 – 5,000) to keep your cost down. REMEMBER: even with a big deductible you can still find plans with the things you like: doctor and drug copays.
2. Stick with the “brand name” companies, like Blue Cross, Humana, Aetna, etc. There are a lot of other plans that “look good” but, if or when you have that big claim, they’ll vanish like an honest politician.
3. Talk to a broker who specializes. Visit NAHU.org (see below) to find one near you. NAHU is the professional association of brokers like me who specialize in health insurance.
4. Get you own quotes online. Visit my site (below) or go to Norvax.com to get prices.

Hope this helps a bit!

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Grants, resolutions top School Board agenda

A number of grants and resolutions forwarded from the St. Tammany Parish School Board Committee as a Whole for Administration and Business Affairs last Thursday were approved at the regular meeting of School Board Thursday night.

High Deductible Health Plan Comparison

Question: Does an inexpensive health care with a very Low Deductible exist?

I am searching for a health care plan that is less than $150 per month for a married couple under 35 years old with a low deductible. We are a low income family that struggles to pay medical bills. We avoid going to doctors unless it is absolutely necessary. We’re both in pretty good health, just want to have health insurance for emergencies. Does a plan like this even exist? I’ve found many that are somewhat inexpensive, but the deductible is extremely high. We don’t have children, so I don’t think we are eligible for Medicaid. Any help would be appreciated.

Answer: Nope. It doesn’t exist – or it’s a scam, or it’s a “list” – not INSURANCE.

See, the average person has just over $7,000 a year in medical expenses. The average pregnancy costs about $15,000 (averaging normal and c section deliveries, as C section rate is around 50% in some parts of the USA) If you’re 30 and healthy and not overweight, WITHOUT maternity coverage, a no/low ($250) deductible plan should cost, around $300 per month, EACH. If you want maternity, it’s about an EXTRA $300 a month, and won’t pay out for any pregnancy until you’ve held it about 18 months.

Taking on a big deductible can cut that premium in half.

BUT, if you’re healthy, and only want emergency coverage, and don’t go to the doctor, then you’d be PERFECT for a high deductible plan. Especially if you can combine it with an HSA.

Bottom line – the cheapest health care plan is always going to be through your employer, because they usually pick up at least half the tab for it.

Items on Amazon Right Now for Health Insurance Low Deductible:

Deductible-free screening encourages use of preventive care services

When they do not have to pay a health insurance deductible, people are more likely to undergo screening for conditions like cancer and high cholesterol. However, the increase is modest, and in high-deductible plans, it is quite small, according to a new study in the journal Health Services Research.

High Deductible Medical Insurance

Question: Question about Health Insurance ?

Its regarding health insurance. I have my health insurance covering my entire family (me, my wife and a kid).

My health insurance is like this .
2500$ deductible per person , out of the pocket is 7500 for entire family.

I am expecting my next baby in few months (i.e. May). Since the deduct able is very high to me. i am looking for any idea or suggestion to cover the deduct able amount through other insurance provider (i.e. additional insurance) now.

I did tried with few of the insurance provider, all of them declined to cover the pregnancy at this point.

Therefore i wanted to know, is there any way, i can get additional insurance to cover the Deductible Amount through any other insurance provider, who covers pregnancy at this point.

FYI: right now i am into a group insurance, so i am not allowed to change the plan with my existing insurance company and that is the reason i am looking for additional coverage from other insurance company.

Thanks

Answer: health-quotes.talk4fun.net – here is my health insurance plan. As I remember they can provide such a service.

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Marketers are always trying to convince consumers that shopping is fun.

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Question: Is the gift money given to spouse/children tax deductible?

Is the gift money given to spouse and/or children tax deductible? If yes, up to what amount for the ‘Married filing jointly’ status?

Answer: No.

Gifts to individuals (regardless of who they are) have never been deductible.

Only gifts to qualified charities are deductible.

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Salvation Army needs its own little helpers to make Christmas merry

There were long lines on the first day of registration at the Salvation Army to help Orlando families give their children Christmas presents this year.

Tax Deduction Tips : Gift Tax Basics