Wednesday, 28. July 2010
People are turning to health insurance plans with low-cost premiums to cope with rapidly escalating monthly rates. Certain high-deductible health insurance plans can be combined with a Health Savings Account (HSA) to offer even more savings. In addition to the tax-free interest, and tax deductions for health-related expenses, a HSA from a large independent firm can net you several other discounts.
Larger companies have enough clients to wield negotiating power, and bargain for lower fees for health-related services. With a large share of the market, agencies can offer discounts for medical costs that have big markups, such as lab fees and prescription drugs. These discount cards, and other ways to save, are available on the Internet.
Discounts on Lab Fees
Services are available that allow you to order lab tests, such as blood work and CAT scans online, and go to participating labs to have the tests run with a 48-hour turnaround. Major health insurance providers are offering substantial discounts on the price of lab tests and prescription drugs.
Prescription Drug Discounts
With a wide variation in prescription medication pricing, you can save a lot just by comparison shopping. You can also take advantage of Prescription Drug Discount Cards through larger health insurance firms. Many of these discount cards can provide substantial savings at a wide range of large-chain pharmacies across the country.
Special Retail Discounts for Health Savings Account Owners
A large market share also allows big health insurance agencies to strike bargains with common retailers, such Barnes & Noble, Netflix, Starbucks, Target, and other chains. HSA owners can earn rewards where up to 25 percent of your qualifying purchases accumulate, and transfer into your HSA.
Bill Negotiation Lowers Fees for HSA Owners
One of your biggest opportunities to save can come through no-cost bill negotiation services. Large employers and insurance companies routinely negotiate with doctors and hospitals to get much lower prices than the general public does.
With a large presence in the marketplace, independent health insurance firms offer the same service to HSA owners, risk free. Before paying a medical bill, you can submit your bill to a negotiation service. If they can negotiate a reduced bill, you keep 70 percent of the savings! If they can’t, you pay them nothing. In other words, you have nothing to lose, and 70 percent of big bills to gain.
Online and Telephone Physician Consultations for HSA Owners
When you’re saving with high-deductible health insurance, you pay for your small costs, including doctor office visits. To save on these, you can take advantage of special arrangements for real-time access to licensed physicians by phone, or through email. By using these free consultation services, at least you’ll be sure when you really need to pay to see a doctor.
Combined Savings Add up for HSA Owners
When you save on doctor office visits, lab fees, and prescription costs, your savings can add up quickly. Plus, you’ll be saving with lower monthly premiums from your high-deductible health insurance plan while your HSA earns interest tax-free.
With such attractive features, Health Savings Accounts are growing in popularity, and can provide greater control over your healthcare dollars. When you become a member of a provider with a large share of the market, you can enjoy substantial discounts and benefits that are rarely available to individuals without health insurance through an employer. With the out-of-control pricing for healthcare today, it’s important to take advantage of all the savings that are available.
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Friday, 23. July 2010
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Sunday, 11. July 2010
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Saturday, 10. July 2010
Health Savings Accounts allow you to set up a tax-deductible account to pay for medical expenses that are not covered by your health insurance. These include expenses to cover your deductible, and other medical expenses like dental and eyeglasses. But many don’t realize that HSA funds can be used to pay for virtually any type of medical service, as long as it pertains to the treatment or prevention of a specific health condition.
Because money withdrawn from a health savings account to pay medical expenses is tax-free, anyone who has an HSA can funnel all alternative medical expenses through their HSA and get a tax write-off. This could include biofeedback, naturopathy, Ayurvedic medicine, aromatherapy, magnetic healing, reflexology, and the list goes on.
People who use complementary therapies are often very health conscious, and go to traditional physicians less often. So it does not make sense for them to be paying a high premium for a traditional health insurance plan with a co-pay, particularly when their medical treatments are not covered anyway. Instead, many are choosing a low cost high-deductible HSA plan.Alternative Therapies Becoming Mainstream
Many hospitals are now offering complementary treatments. The website for the Memorial Sloan-Keating Cancer Center states that complementary therapies are used to “help alleviate stress, reduce pain and anxiety, manage symptoms, and promote a feeling of well-being.”
Some group health insurance plans are beginning to cover more complementary expenses, but there is still very little coverage for these expenses in individual or family plans. Those that cover chiropractic limit coverage to 12 – 20 visits per year, and a few will cover a limited amount of acupuncture. But very few if any cover hypnotherapy, Reiki, iridology, or faith healers.Why Complementary Medicine
The conventional medicine practiced by most MDs is called allopathic medicine. The philosophy of this system is to treat disease and injury using counteractive methods. For instance, if you have a fever you may take aspirin to make it go down, if your cholesterol is elevated you may take a statin to reduce it, if you have heartburn you may take an antacid. The thinking is mostly focused on removing the symptoms of disease, and the primary treatment modalities are surgery and prescription drugs.
But there are other ways to look at things. Naturopathic medicine is based on the belief in the body’s own healing powers, which can be strengthened through the use of certain foods, vitamins, herbs, or other “natural” treatments. Traditional Chinese Medicine (TCM) is based on ancient Chinese theories about the balance of yin and yang. Ayurvedic medicine is based on principles of movement, metabolism, and structure.
Part of the growing use of complementary therapies is a reaction to the costs, side effects, and philosophy of conventional allopathic medicine. Physicians get much of their continuing education from the pharmaceutical industry, and they work in an environment where the insurers and the patients are both looking for a quick fix. The result is that the average 60 year old is now taking 5 regular medications, yet there is little expectation that those drugs will ever cure the health problems for which they’re being used. Many consumers see this, and instead are using other methods to try to get to the root of their illness.What is Considered a “Qualified HSA Expense”
Qualified medical expenses have been partially defined in IRS Publication 502, and through various federal court rulings. There is no definitive list, but there are really very few restrictions as long as the procedure is for the treatment or prevention of a specific health condition. For instance, you could not use your HSA funds to pay for a relaxing massage for your own personal pleasure. But if your doctor recommends you get a massage for specific medical reasons, this is considered a qualified expense. Yoga would not normally be considered a qualified medical expense, but it would be if it was recommended as a physical therapy following some sort of accident.
Some may question why the government would give a tax deduction for someone to use some crazy energy vibration machine to cure their cancer. But this is as it should be. No one but you should be able to decide what type of treatment you will use for your own illnesses. By empowering individuals to manage their health as they see fit, HSAs encourage personal responsibility and help loosen the monopoly on healthcare that conventional medicine has had for the past few decades.
Posted in Articles by Prescription Savings -
Friday, 9. July 2010
In order to have a valid HSA, you must be enrolled in a high deductible health plan (HDHP), have no other health coverage (there are exceptions), not be enrolled in Medicare and cannot be claimed as a dependent upon someone else’s tax return. There are many contingencies or possibilities so it is best to seek advice from a licensed insurance agent or an accountant.
An HDHP has many guidelines to follow. With annual deductible limits set by the IRS, a user of the plan can have either of two basic types of coverage – self-only and family. For families, a spouse may still be eligible for HDHP plan provided that they are not covered by their spouse’s plan (if it is a non-HDHP plan). A subscriber can still enjoy other types of benefits with their health coverage – prescription, dental, vision, disability, accidental and long term care.
There are limits on the amount of contributions you can make to a health savings account. This depends on the specific type of coverage your HDHP carrier provides. Each plan will have a specific deductible. In order to make qualified contributions, you must maintain your eligibility for coverage within a qualified HDHP plan and have the same type of coverage all year to maximize contributions. In addition, you may have to reduce the amount of contributions if you have made contributions other health spending accounts. You should be aware that if you contribute funds in excess of the deductible limit placed on the account, you will pay a 6% excise tax on the overage amount. You can also avoid the 6% excise tax if you withdraw any income earned on the withdrawn contributions and include them on the “other income” section of your tax return.
Taking and reporting distributions from your health savings account has its own set of guidelines to follow. Should you pay for medical expenses that are not covered by the HDHP, you can request for a distribution from your HSA. The funds used from this account must be used for medical expenses in order to remain tax free. If not, they may be subject to a 10% additional tax on any distribution taken. You will need to maintain records for the amount of contributions made as well as what funds were used for qualified and non-qualified distributions. Keep in mind that if you should use any part of the funds as security for another loan or should your account ceases to be an HSA, the funds will be deemed as fully distributed and you will need to report the fair market value of the assets in the account.
You will also need to understand what can happen to a health savings account in the event that the owner dies. If the owner’s spouse is the beneficiary, the account can remain as an HSA. If the beneficiary is not a spouse, then the account ceases being a health savings account and becomes taxable (at fair market value).
HDHPs and HSAs are fairly new products that are attempting manage the growing costs of medical expenses. You should research what HDHP carriers can offer you to see if this route is the best for you and your family.
Jack Morgan, First Choice Insurance Agency, is an experienced and licensed health and life insurance agent in both Arizona and Oregon and a member of the Better Business Bureau and the Beaverton Area Chamber of Commerce. Visit his website at First Choice Insurance Agency or if in Oregon or Arizona phone him toll free: 866-231-0038.
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Monday, 5. July 2010
Americans spend over $30 billion each year on complementary and alternative therapies, mostly out of their own pocket. That is because few health insurance plans cover expenses like homeopathy, acupuncture, or Chinese medicine. But if you own a Health Savings Account, these expenses are 100% tax deductible.Health Savings Accounts allow you to set up a tax-deductible account to pay for medical expenses that are not covered by your health insurance. These include expenses to cover your deductible, and other medical expenses like dental and eyeglasses. But many don’t realize that HSA funds can be used to pay for virtually any type of medical service, as long as it pertains to the treatment or prevention of a specific health condition.
Because money withdrawn from a health savings account to pay medical expenses is tax-free, anyone who has an HSA can funnel all alternative medical expenses through their HSA and get a tax write-off. This could include biofeedback, naturopathy, Ayurvedic medicine, aromatherapy, magnetic healing, reflexology, and the list goes on.
People who use complementary therapies are often very health conscious, and go to traditional physicians less often. So it does not make sense for them to be paying a high premium for a traditional health insurance plan with a co-pay, particularly when their medical treatments are not covered anyway. Instead, many are choosing a low cost high-deductible HSA plan.Alternative Therapies Becoming Mainstream
Many hospitals are now offering complementary treatments. The website for the Memorial Sloan-Keating Cancer Center states that complementary therapies are used to “help alleviate stress, reduce pain and anxiety, manage symptoms, and promote a feeling of well-being.”
Some group health insurance plans are beginning to cover more complementary expenses, but there is still very little coverage for these expenses in individual or family plans. Those that cover chiropractic limit coverage to 12 – 20 visits per year, and a few will cover a limited amount of acupuncture. But very few if any cover hypnotherapy, Reiki, iridology, or faith healers.Why Complementary Medicine
The conventional medicine practiced by most MDs is called allopathic medicine. The philosophy of this system is to treat disease and injury using counteractive methods. For instance, if you have a fever you may take aspirin to make it go down, if your cholesterol is elevated you may take a statin to reduce it, if you have heartburn you may take an antacid. The thinking is mostly focused on removing the symptoms of disease, and the primary treatment modalities are surgery and prescription drugs.
But there are other ways to look at things. Naturopathic medicine is based on the belief in the body’s own healing powers, which can be strengthened through the use of certain foods, vitamins, herbs, or other “natural” treatments. Traditional Chinese Medicine (TCM) is based on ancient Chinese theories about the balance of yin and yang. Ayurvedic medicine is based on principles of movement, metabolism, and structure.
Part of the growing use of complementary therapies is a reaction to the costs, side effects, and philosophy of conventional allopathic medicine. Physicians get much of their continuing education from the pharmaceutical industry, and they work in an environment where the insurers and the patients are both looking for a quick fix. The result is that the average 60 year old is now taking 5 regular medications, yet there is little expectation that those drugs will ever cure the health problems for which they’re being used. Many consumers see this, and instead are using other methods to try to get to the root of their illness.What is Considered a “Qualified HSA Expense”
Qualified medical expenses have been partially defined in IRS Publication 502, and through various federal court rulings. There is no definitive list, but there are really very few restrictions as long as the procedure is for the treatment or prevention of a specific health condition. For instance, you could not use your HSA funds to pay for a relaxing massage for your own personal pleasure. But if your doctor recommends you get a massage for specific medical reasons, this is considered a qualified expense. Yoga would not normally be considered a qualified medical expense, but it would be if it was recommended as a physical therapy following some sort of accident.
Some may question why the government would give a tax deduction for someone to use some crazy energy vibration machine to cure their cancer. But this is as it should be. No one but you should be able to decide what type of treatment you will use for your own illnesses. By empowering individuals to manage their health as they see fit, HSAs encourage personal responsibility and help loosen the monopoly on healthcare that conventional medicine has had for the past few decades.
By Wiley Long – President, HSA for America (http://www.health–savings–accounts.com) – The nation’s leading independent health insurance firm specializing in individual and family coverage that works with a Health Savings Account.
Posted in Articles by Prescription Savings -
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.”
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Thursday, 1. July 2010
“Consumer driven healthcare” is the name that has been given to the change that is currently happening in the medical marketplace. As millions of people get Health Savings Accounts, medical providers are having to adapt to the new reality of people spending their own money when purchasing healthcare. As more companies compete for your business, the opportunities to save money will continue to grow.
Since the advent of employer-sponsored health insurance during World War II, the pricing and quality of medical services has been shrouded in mystery. As the real price for computers, organic food, big-screen TV’s, and just about everything else has continued to drop (including health services where there is not a third party payer, such as laser eye surgery, contact lenses, over the counter medication), the price of healthcare has continued to rise. But that is finally beginning to change. And you, fellow HSA-owners, are the reason.
To gain a competitive advantage, healthcare providers have traditionally attempted to grow local market share in an attempt to extract higher payments from insurance companies. But since Health Savings Account owners have the ability to accumulate unspent funds and invest them tax-free, those of us with a Health Savings Account have a strong incentive to avoid unnecessary care, and to be more cost conscious when we seek treatment.
There are now billions of dollars in Health Savings Accounts, and healthcare providers want access to that money. And since you control it (instead of the insurance company), the only way for the provider or retailer to get that money is to offer you high quality care at a price you are willing to pay. And dozens of companies are doing just that. The Market Responds
One obvious response to the consumer-driven healthcare movement is the proliferation of quick-service medical clinics. These clinics, which require no appointment and typically charge less than $50, offer a low-cost way to diagnose and treat strep throat, bronchitis, pink eye, and other common ailments. MinuteClinic operates dozens of locations in Target, Cub Foods, and CVS Pharmacy stores. Wal-mart, which currently has 75 in-store clinics in 12 states, is forecasting more than 6,600 in-store medical clinics will be open in retail stores within 5 years.
Diagnostic labs, which have traditionally sold their services to physician’s offices, are now offering tests directly to the public at prices often 70% less than you would pay at a doctor’s office. With most you can order the test online, go give blood, and get your results in a couple days.
Companies are even providing self-testing services and devices which can enable you to avoid going to the doctor when minor medical events occur. One of the most common reasons kids see a doctor is because of a possible ear infection. For about $50 you can buy an EarCheck Middle Ear Monitor. This uses sonar to test for fluid behind the eardrum, which may indicate an infection. “The QuickVue Strep Test” which costs less than $4 per test in a pack of 25, can quickly help you determine if your child has a strep infection, which would require a doctor’s visit, from a common viral infection, which would not.Demand Price TransparencyHealth Savings Accounts reward personal responsibility in three ways: 1) they reward you with tax-breaks for putting money aside to cover future medical expenses; 2) they reward you for taking care of your health by enabling you to grow your account; and 3) they reward you for being a cost-conscious and discerning consumer.
So be a discerning consumer, and spend your money wisely. Remember that the doctors and healthcare providers you see work for you. If you don’t get the quality of service or a fair price, take your business elsewhere. Here are some common sense suggestions to make sure you do get a good price:
1. Ask how much it will cost, before you buy. There is nothing else that you buy without knowing the price up front, so don’t feel intimidated to ask your doctor the same.
2. Review your bill before paying it. You might be shocked how often extra charges are “accidentally” tacked on to hospital bills.
3. Ask for a cash discount. To avoid the hassles of filing for insurance and trying to collect past-due charges, most physicians will gladly offer a cash discount if you ask.
4. Explain that you will be paying out of your own pocket. When a doctor is prescribing tests or writing prescriptions, he or she is rarely taking cost into consideration. The American Journal of Preventive Medicine recently reported that up to $63 billion in medically unnecessary tests are ordered every year.
5. Vow never to pay list fees. Doctors and hospitals routinely discount their services to insurance companies and PPO organizations. As a cash-paying customer, you should get the best price available.
For many years, a small group of health economists and other policy-makers pushed for a more market-based approach to healthcare. They correctly argued that healthcare was like any other market and that if you put a true price on health care services and let the market function, costs could be controlled. We are now beginning to see this happen.
Our healthcare system is the best in the world. It is a dynamic and complex work in progress, which can only get better as the consumer gets involved. So be savvy about how you spend your healthcare dollar. And watch those unspent funds in your Health Savings Account continue to grow.
The Medicare Trust Fund will soon be out of money, and there will be no practical way for the government to continue to provide the level of benefits that current Medicare recipients receive. The result will be serious rations, waiting periods, and a reduction in benefits. If you wish to maintain your medical freedom, and have access to a high level of medical service, you must be prepared to pay for it yourself. The best strategy is to take good care of your health, and to build up your medical retirement fund as large as possible by using a Health Savings Account.
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Wednesday, 30. June 2010
By choosing a Health Savings Account, one is betting on themselves… in a way. If you stay healthy, then with a typical health insurance plan you’re just out a lot of money. With a Health Savings Account, not only will you pay significantly less in premiums, but at the end of the year you have a nice deposit of up to $5,650 sitting in your account. Money which you didn’t pay any federal income taxes on, state income taxes (with the exception of four states) on, or social security taxes.
Let’s say a 30-year old man with a family opens a Health Savings Account and has a high-deductible health plan that allows him to fund the account with $5,650 each year. If he takes $1,000 or less out each year for medical expenses, and earns a 10% return on his money, he’ll have $1,422,878 when he retires.
The best way to accumulate this much money in your Health Savings Account is to stay healthy, so that you don’t need to access those funds to pay for medical expenses. The good news is that the vast majority of diseases and disorders people have are the direct result of their lifestyle choices. High blood pressure, cancer, diabetes, Alzheimer’s, digestive disorders, endometriosis, osteoarthritis, osteoporosis, and more, are all largely preventable.
The Average Guy Doesn’t Get It
The average American lives as if social security, a few prescriptions, and some good luck will take care of him in his later years. So he saves little for retirement. He eats packaged foods like French fries, chips, cokes, pasta, and cold cuts. And over the years he puts on “a few extra pounds”, and he gets out-of-shape, and he gets high blood pressure, and high cholesterol, and eventually heart disease, cancer, diabetes, or Alzheimer’s.
Insurance Companies Get It
Some insurance companies do understand the tremendous impact lifestyle can have on health, and are beginning to institute programs to encourage healthy lifestyles among their customers. Healthy policyholders will use their coverage less, resulting in lower rates for them, and better customer retention and higher profitability for the insurance company. Some insurance companies started new programs designed to help reward their customers for staying healthy. The programs provide health risk assessments, personalized health-improvement plans, email access to trainers, counselors, and nutritionists, and even credits that can be redeemed for health-related merchandise.
HSA Owners Get It
People who open Health Savings Accounts are proactive. They act ahead of time, and think about how their actions now will affect their future. That is why they put away tax-deferred money for future possible health expenses, and that is why many are also interested in taking a proactive approach to their health. Choosing to live an extraordinarily healthy life, and actively making lifestyle changes, is an activity that will bring tremendous returns. Tax-free, just like an HSA.
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Tuesday, 29. June 2010
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