Sunday, 4. July 2010
With more and more small companies opting not to provide health benefits, more individuals and their families are being forced to purchase affordable health insurance on their own. But this can be easier said than done.
One of the most common mistakes that can be made is to try and replicate the benefits under a former group plan. Typically, these plans are very expensive in the individual market, primarily because of lower deductibles and co-pays for everything from physician visits to prescription drugs.
A viable alternative for many people is to consider a health savings account plan instead of a traditional health insurance policy with low deductibles and co-pays. A health savings account plan consists of 2 elements: 1) a high deductible health insurance policy (or HDHP) and 2) a savings account that is similar to an IRA (because it offers tax advantages).
Here is a 5-point plan approach to help individuals make the switch to a health savings plan:
1. Instead of an expensive policy with a low deductible, carry a low cost plan with a high deductible. This alone can save thousands a year in premiums.
2. Take the money saved on premiums and deposit it into a special tax-sheltered HSA. These deposits are 100% tax-deductible “above the line,” so you instantly lower your tax bill each time you merely deposit money into your savings account.
3. You can then withdraw money from the HSA on a tax-free basis to pay routine medical bills during the year. When you use tax-free money to pay medical bills, you are using discounted dollars to pay those bills, thereby lowering their actual cost to you.
4. Most larger expenses should be covered under your high deductible health plan (after the deductible has been satisfied, subject to policy terms, benefits, and limitations).
5. What you don’t use from the health savings account each year is always yours! The unused funds remain in the account and continues to grow on a tax-deferred basis, just like an IRA. In fact, HSA plans are often referred to as “medical IRA” plans because they help supplement your retirement, just like an IRA.
By following this 5-point plan, you should see your health care account grow and grow over time. It’s a much more attractive option for most people than paying high premiums for health care they rarely need.
This article was written by C. Dean Richard, a benefits broker who has specialized in health savings accounts for individuals and the self employed since 1999. His expertise with health savings account plans has earned him the nickname “the HSA king.”
Posted in Articles by Prescription Savings -
Thursday, 20. May 2010
Charles Myrick the President of American Consultants Rx announced the re-release of the American Consultants Rx community service project. ACRX donated over 20 million ACRX discount prescription cards throughout the country. One of the main locations in the Baton Rouge, LA area that received an initial donation of ACIRX free prescription cards, is the Home Healthcare 2000. The ACRX cards are to be given free to anyone in need of help curbing the high cost of prescription drugs.
Due to the rising costs, unstable economics, and the mounting cost of prescriptions, American Consultants Rx Inc. (ACRX) a.k.a (ACIRX) an Atlanta based company was born in 2004. The ACRX discount prescription card program was created and over 3 million discount prescription cards were donated to the community across the country free of charge between 2004-2005.
The ACRX cards will offer discounts of name brand drugs of up to 40% off and up to 60% off of generic drugs. They also possess no eligibility requirements, no forms to fill out, or expiration date as well .One card will take care of a whole family. Also note that the ACRX cards will come to your organization already pre-activated .The cards are good at over 50k stores from Walgreen, Wal mart, Eckerd’s, Kmart, Kroger, Publix, and many more. Any one can use these cards but we are focusing on those who are uninsured, underinsured, or on Medicare.
ACRX made arrangements online for the ACRX card to be available at ACIRX com site where it can be downloaded as well. This arrangement has been made to allow organizations an avenue to continue assisting their clients in the community until they receive their orders of the ACRX cards. ACRX made it possible for future request to be made from online as well. ACRX also developed a unique marketplace at 2Spendless com site where you can also click on the ACIRX blue banner and download your free discount prescription card as well as find other key discounts.
With a backorder of over 40 million cards ACRX is working diligently to assist as many people and organizations as possible. ACRX will be working over the next few months to fulfill as many backorders as possible. It should be noted that while many other organizations and companies place a cost on their money saving cards, ACRX does not believe a cost should be applied, just to assist our fellow Americans. ACRX states that it will continue to strive to assist those in need.
Posted in Articles by Prescription Savings -
Friday, 14. May 2010
In 1965, Congressional budgeters said that Medicade would cost $12 billion in 1990. Its actual cost that year was $90 billion. WHOOPS!!!!!
The hospitalization program alone was supposed to cost $9 billion but wound up costing $67 billion. Another WHOOPS!!!!!!
These aren’t small forecasting errors. The rate of increase in Medicare spending has outpaced overall inflation in nearly every year (up 9.8% in 2009), so a program that began at $4 billion now costs $428 billion.
The Medicare program for renal disease was originally estimated in 1973 to cover 11,000 participants. Today it covers 395,000, at a cost of $22 billion. The 1988 Medicare home-care benefit was supposed to cost $4 billion by 1993, but the actual cost was $10 billion, because many more people participated than expected. Another congressional DOH!
This is nearly always the case with government programs because their entitlement nature—accepting everyone who meets the age or income limits—means there’s no fixed annual budget.
One of the few health-care entitlements that has come in well below the original estimate is the 2003 Medicare prescription drug bill. Those costs are now about one-third below the original projections, according to the Medicare actuaries. Part of the reason is lower than expected participation by seniors and savings from generic drugs.
Moral of the story – Congress is terrible at estimating the cost of programs and what will the Obama healthcare cure be worse the the actual problem we have right now?
http://online.wsj.com/article/SB10001424052748703746604574461610985243066.html?mod=WSJ_hpp_sections_opinion
Posted in Answers by Prescription Savings -
Sunday, 2. May 2010
instead of socializing it or passing a law forcing us to have insurance and giving the insurance companies a bonanza like ‘universal’ plans would be, why not just demand more of the insurance companies? say “what the hell? i pay 500 a month, and im NOT going to pay a 2500 deductable, and im NOT going to pay 20% co-insurance, nor am i going to pay 50 bucks for a generic prescription!” why not reign in these companies and FORCE them to provide affordable, COMPLETE coverage? have you looked for health insurance lately? its laughable. almost makes you just want to take that 500 a month and put it into savings, since that would be better than relying on these bastards, who come right out and tell us that we have to pay a large percentage of our own bills, then pay a percentage after that. its ridiculous. then once we reign them in, THEY will reign in the drug companies and doctors.
lets not forget that we still have the power. maybe not of VOTE but we still control the money.
Posted in Answers by Prescription Savings -
Wednesday, 28. April 2010
VA (Veterans Administration) healthcare is one of the best yet cheapest providers out there. Of course, it’s only for veterans.
.
Public Option will provide similar services and savings to rest of country.
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This buying/bargaining power specifically opposed by drug companies during Medicare Prescription Drug Benefit debate.
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Their well-funded lobby – which bought services of a Republican former Congressman for $2,000,000.00 a year – ensured Medicare, unlike the VA, NOT ALLOWED TO BARGAIN down drug prices!
Posted in Answers by Prescription Savings -
Saturday, 24. April 2010
So look at these new taxes.
Next year any health care benefits from you job are taxable income. So the average American will pay an additional income tax of about 21% (average) health insurance.
Limits on the amount you cam put into your tax exempt health care savings account to save for future medical expensive. So now you pay more income taxes and have less money saved for health care expensive. (Don’t have a major illness!)
We now have a new ban on using funds from flexible spending accounts, health reimbursement arrangements or health savings accounts for the cost of over-the-counter medications, starting in 2011. So you can’t use tax free money and buy any of the new allergy medications that have gone OTC. Instead you have to get the prescription meds that cost 4 times as much, or pay an average 21% tax penalty on the cheap medications-plus you still pay sales tax!
An increase in the amount necessary you have to spend in order to itemize your health care deductions. This will force that average American who has major medical bills to pay and additional $100 a year in income taxes.
And finally, If you spend more than they think you should on your insurance, thay are sticking you for an additional 40% tax in your insurance. On this one, the sky is the limit on how much you pay. So basically they are trying to make sure that no one can afford really good insurance!
So will some please explain to me how these specific laws CUT my health care costs?
Have you guys bothered to actually read ANY of the new law?
Elwood-One link comming up! Give me 2 min!
Sorry Elwood-it took longer than I thought. Slow connection today. Here is you r link!
http://finance.yahoo.com/family-home/article/109234/health-care-reform-tax-hikes-on-the-way?mod=insurance-health
I ALWAYS can back up what I say. I was going to send it direct to you, but you do not allow anyone to have any way to contact you or see any of your history?
Why? Scared? Ashamed? What is the deal?
JW B-but while they wer forcing this law through agains the will of the majority of Americans-they were always talking about how peoples insurance was so expensive! thay talked all about how so many people are pay HUGH insurance premiums. WE all heard the stories of $1200+ a month insurance premiums!
Posted in Answers by Prescription Savings -
Wednesday, 14. April 2010
By mandating cuts in federal payments to health providers, the measures would go a long way toward ensuring that untested innovations in health delivery actually produce savings for the federal government
If the drug makers pay their fair share, we can cut government spending on prescription drugs.
Obama also suggested reducing payments to drug companies that serve Medicare recipients
Obama also proposed slashing subsidies to hospitals that treat uninsured patients
Obama Offers More Health-Care Savings Through Limits on Payments
http://voices.washingtonpost.com/44/2009/06/13/pointing_to_potential_savings.html?wprss=44
If hospitals are being over burdened by the “uninsured” how then can they keep building the new additions, the east , west, south north version of the main hospital. You guys are being fed a load of crap. I was a nurse for 32 years.
Posted in Answers by Prescription Savings -
Sunday, 11. April 2010
http://www.atr.org/
So what say you! Like this deficit neutral bill? It will cost the people not the budget like Medicare etc…
BREAKING: Comprehensive List of Taxes
In House Democrat Health Bill
From Ryan Ellis on Thursday, October 29, 2009 12:20 PM
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H.R. 3962, the “Affordable Health Care for America Act” has been introduced–all 1990 pages of it. This gargantuan beast contains thirteen new tax hikes. Here they all are, with description and page number (PDF version):
***
Employer Mandate Excise Tax (Page 275): If an employer does not pay 72.5 percent of a single employee’s health premium (65 percent of a family employee), the employer must pay an excise tax equal to 8 percent of average wages. Small employers (measured by payroll size) have smaller payroll tax rates of 0 percent (<$500,000), 2 percent ($500,000-$585,000), 4 percent ($585,000-$670,000), and 6 percent ($670,000-$750,000).
Individual Mandate Surtax (Page 296): If an individual fails to obtain qualifying coverage, he must pay an income surtax equal to the lesser of 2.5 percent of modified adjusted gross income (MAGI) or the average premium. MAGI adds back in the foreign earned income exclusion and municipal bond interest.
Medicine Cabinet Tax (Page 324): Non-prescription medications would no longer be able to be purchased from health savings accounts (HSAs), flexible spending accounts (FSAs), or health reimbursement arrangements (HRAs). Insulin excepted.
Cap on FSAs (Page 325): FSAs would face an annual cap of $2500 (currently uncapped).
Increased Additional Tax on Non-Qualified HSA Distributions (Page 326): Non-qualified distributions from HSAs would face an additional tax of 20 percent (current law is 10 percent). This disadvantages HSAs relative to other tax-free accounts (e.g. IRAs, 401(k)s, 529 plans, etc.)
Denial of Tax Deduction for Employer Health Plans Coordinating with Medicare Part D (Page 327): This would further erode private sector participation in delivery of Medicare services.
Surtax on Individuals and Small Businesses (Page 336): Imposes an income surtax of 5.4 percent on MAGI over $500,000 ($1 million married filing jointly). MAGI adds back in the itemized deduction for margin loan interest. This would raise the top marginal tax rate in 2011 from 39.6 percent under current law to 45 percent—a new effective top rate.
Excise Tax on Medical Devices (Page 339): Imposes a new excise tax on medical device manufacturers equal to 2.5 percent of the wholesale price. It excludes retail sales and unspecified medical devices sold to the general public.
Corporate 1099-MISC Information Reporting (Page 344): Requires that 1099-MISC forms be issued to corporations as well as persons for trade or business payments. Current law limits to just persons for small business compliance complexity reasons. Also expands reporting to exchanges of property.
Delay in Worldwide Allocation of Interest (Page 345): Delays for nine years the worldwide allocation of interest, a corporate tax relief provision from the American Jobs Creation Act
Limitation on Tax Treaty Benefits for Certain Payments (Page 346): Increases taxes on U.S. employers with overseas operations looking to avoid double taxation of earnings.
Codification of the “Economic Substance Doctrine” (Page 349): Empowers the IRS to disallow a perfectly legal tax deduction or other tax relief merely because the IRS deems that the motive of the taxpayer was not primarily business-related.
Application of “More Likely Than Not” Rule (Page 357): Publicly-traded partnerships and corporations with annual gross receipts in excess of $100 million have raised standards on penalties. If there is a tax underpayment by these taxpayers, they must be able to prove that the estimated tax paid would have more likely than not been sufficient to cover final tax liability.
Read More | Comments (0) | Permalink | Email | Print | Tags: TAXES, HEALTHCARE
House Healthcare Bill Uses the Term “Tax” 87 Times
From John Kartch on Thursday, October 29, 2009 11:44 AM
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A word search of the 1,990-page House healthcare bill (H.R. 3962) reveals that the term “tax” is used 87 times, “taxable” is used 62 times, and “excise tax” is used 10 times.
Other terms of interest are as follows:
House Healthcare Bill (H.R. 3962)
Term
Number of uses
“Tax”
87 times
“Taxable”
62 times
“Excise tax”
10 times
“Taxes”
15 times
“Fee”
59 times
“Penalty”
113 times
“Require”
118 times
“Must”
58 times
“Shall”
3,424 times
Click here for a printable PDF of this document
Read More | Comments (2) | Permalink | Email | Print | Tags: TAXES, HEALTHCARE, CONGRESS, Federal
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Saturday, 10. April 2010
won’t Pelosi let us read it, and why didn’t she tell us about all the new taxes?
Here they all are, with a brief description and page number:
• Employer Mandate Excise Tax (Page 275): If an employer does not pay 72.5 percent of a single employee’s health premium (65 percent of a family employee), the employer must pay an excise tax equal to 8 percent of average wages. Small employers (measured by payroll size) have smaller payroll tax rates of 0 percent (<$500,000), 2 percent ($500,000-$585,000), 4 percent ($585,000-$670,000), and 6 percent ($670,000-$750,000).
• Individual Mandate Surtax (Page 296): If an individual fails to obtain qualifying coverage, he must pay an income surtax equal to the lesser of 2.5 percent of modified adjusted gross income (MAGI) or the average premium. MAGI adds back in the foreign earned income exclusion and municipal bond interest.
• Medicine Cabinet Tax (Page 324): Non-prescription medications would no longer be able to be purchased from health savings accounts (HSAs), flexible spending accounts (FSAs), or health reimbursement arrangements (HRAs). Insulin excepted.
• Cap on FSAs (Page 325): FSAs would face an annual cap of $2500 (currently uncapped).
• Increased Additional Tax on Non-Qualified HSA Distributions (Page 326): Non-qualified distributions from HSAs would face an additional tax of 20 percent (current law is 10 percent). This disadvantages HSAs relative to other tax-free accounts (e.g. IRAs, 401(k)s, 529 plans, etc.)
• Denial of Tax Deduction for Employer Health Plans Coordinating with Medicare Part D (Page 327): This would further erode private sector participation in delivery of Medicare services.
• Surtax on Individuals and Small Businesses (Page 336): Imposes an income surtax of 5.4 percent on MAGI over $500,000 ($1 million married filing jointly). MAGI adds back in the itemized deduction for margin loan interest. This would raise the top marginal tax rate in 2011 from 39.6 percent under current law to 45 percent—a new effective top rate.
• Excise Tax on Medical Devices (Page 339): Imposes a new excise tax on medical device manufacturers equal to 2.5 percent of the wholesale price. It excludes retail sales and unspecified medical devices sold to the general public.
• Corporate 1099-MISC Information Reporting (Page 344): Requires that 1099-MISC forms be issued to corporations as well as persons for trade or business payments. Current law limits to just persons for small business compliance complexity reasons. Also expands reporting to exchanges of property.
• Delay in Worldwide Allocation of Interest (Page 345): Delays for nine years the worldwide allocation of interest, a corporate tax relief provision from the American Jobs Creation Act
• Limitation on Tax Treaty Benefits for Certain Payments (Page 346): Increases taxes on U.S. employers with overseas operations looking to avoid double taxation of earnings.
• Codification of the “Economic Substance Doctrine” (Page 349): Empowers the IRS to disallow a perfectly legal tax deduction or other tax relief merely because the IRS deems that the motive of the taxpayer was not primarily business-related.
• Application of “More Likely Than Not” Rule (Page 357): Publicly-traded partnerships and corporations with annual gross receipts in excess of $100 million have raised standards on penalties. If there is a tax underpayment by these taxpayers, they must be able to prove that the estimated tax paid would have more likely than not been sufficient to cover final tax liability.
I know Liberals still think the Government is here to help…the only question I have is who? Us…or themselves?
Oh…and here is where you will find the IRS will come after you if you do not, and I quote from the bill, “ACCEPTABLE HEALTH CARE
COVERAGE.”
‘‘PART VIII—HEALTH CARE RELATED TAXES
‘‘SUBPART A. TAX ON INDIVIDUALS WITHOUT ACCEPTABLE HEALTH CARE COVERAGE.”
22 ‘‘Subpart A—Tax on Individuals Without Acceptable
23 Health Care Coverage
page 296.
Posted in Answers by Prescription Savings -
Wednesday, 7. April 2010
Each basic plan consists of medical and hospitalization. Prescription should be separate.
Eliminate employer based insurance and allow us to shop for an insurance plan that meets the specific needs of each. Similar to auto insurance we should all have the right to craft a policy specific to our needs to include deductibles, co-pays, add-on such as birth-control, prostate checks, viagra, etc. You pay for what you need~period.
Allow us to shop for insurance outside our state. This will immediately cause rates to level out country wide and eliminate state by state monopolies.
Get state government out of the process. The states now have too much regulatory authority and dictate such items as birth control, prostate exams, etc. MUST be provided. These type of items should be riders to a basic policy based on individual choice. Example, a healthy 20 year old male most likely does not need to have a prostate exam and thus should not be forced to pay for it.
Eliminate preexisting conditions.
Tort reform
Tax-credits for individuals based on their ability to pay. Those who cannot pay, even with a tax-credit go into medicare and medicaid regardless of age.
Put the savings Obama claims is in medicare back into medicare~this keeps the “government option” the libs want so bad.
The Federal Government reimburses doctors and hospitals who provide care for illegals without using our tax money. The feds allowed them in and allow them to stay so the feds should have to pay the bills and not us.
What do you think of this??
hey guru..I don’t think you read this carefully….we DO pay for our insurance it just gives us more choice and less gov’t. It would be just like buying your auto insurance.
Panda~I like that idea! It sounds to me like purchasing travel insurance before you travel. It’s fairly cheap for the individual but provides a benefit if something happens….very good idea!
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