Medical Savings Accounts: "Three Cheers for the IRS"

Wall St. Journal ^ | July 2, 2002 | Editorial

[The Raven]

We can already feel Ted Kennedy's blood pressure rising. He and New York Senator Hillary Clinton are slowly but steadily trying to build support to nationalize American health care. So when Congress passed Medical Savings Accounts back in 1996, he succeeded in restricting their terms and limiting the total number of policies allowed to 750,000. Suffer your HMOs, he said.

[DoughtyOne]

That's a question I'll be asking ASAP. I'll want to take advantage of this.

[palmer]

it's because you're getting older, and "No" there is no cure for old age.

At that point the patient would probably die from the shock of being told the truth!

The pharm/med industry pushes their fountains of youth as you say but I know somewhat younger people just as dependent on medications that they don't need. They seem to be conditioned to believe that medicine will heal their minds and bodies without any effort on their part when the fact is that very few medicines heal, most are crude bludgeons to suppress or enhance some bodily function without regard to consequences, and ignoring the ability of the body to regulate itself

[dawn53]

Here's an interesting question about the MSA.

Will the consumer be able to get the same deals as the HMO's and PPO's?

In other words, if I'm on a PPO and I go into the hospital, my bill may be $9,000, but the hospital accepts a $2,000 payment from the PPO because it is their contracted price.

Will I, as a consumer, be charged the $9,000 and be responsible for that entire amount? If so, it seems like the hospitals will be "taking it out" on those that choose to use the MSA's.

I do know one individual who chooses not to carry health insurance, and when he gets a bill from a hospital, he walks in, carrying cash, and negotiates a payment. He usually gets at least a 50% reduction on his bill, but I'm sure not many people are aware that the hospitals are willing to work this way, and I don't think the doctors will be willing to negotiate on their fees.

[PeterPrinciple]

Medicare savings accouints were set up in the tax code and I tried to implement these with some people. One of the quirks with msa was the insurance requirement. Most policies where written with a 1,000 or 3,000 deductible but the msa plan required a policity with 1,500 to 2,500 deductible so no company had an existing policy that met the requirement. They had to write new policies......good points and bad for that i imangine.

Anyway, two years ago, no company wrote a policy that met requirements for medicare......I think this was a $5,000 deductible. If I remember correctly, in the medicare savings account, you opted out of the normal coverage and medicare paid the policy plus deposited certain amounts in the medicare savings account for the recipient to pay as they saw fit.

Anyone else have experience with medicare savings accounts?

[PeterPrinciple]

docs and the pharmaceutical companies are way too cooperative

Wasn't there an article awhile back about doctors charging salesman for the cost of the office call.......times are a changing, maybe we will get some entreprenurial doctors out there who don't want to do business with the govt. To bad Home Depot backed down.

[Henrietta]

ping

[TryMe]

While I am in full support of MSA's, I am not sure how well they will work at first.

I've had a medical savings account for years, and i like it because it saves me a lot of money. I pay out of pocket for medical care, but usually go to a nurse practiciioner; it's less than a dr.

For dental, vision, and chiropractic care I use a discount plan called Ameriplan that I really like. You can go here for more info: www.SaveOnBenefits.cjb.net. I bought my plan here.

[TryMe]

and I don't think the doctors will be willing to negotiate on their fees.

They do negotiate. I've had an MSA for years and this is what I do. When I go to a dr. that I have not visited before, I call to make an appoiintment. I tell them I will pay cash at the time of service and that I will pay at their highest reimbursement rate. They always agree, because they get what an ins co would pay them without the ins co paperwork.

Frugal FReepers, you must visit these sites: SimpleCare: www.Simplecare.com for discounts on MD visits, and www.SaveOnBenefits.cjb.net for discounts on dentist, chiropractor, and eye dr. visits (and also prescriptions). These 2 plans plus an MSA with high deductible medical insurance (required with an MSA) and you are set!

[Henrietta]

Do you have a revenue ruling number for this?

[kcvl]

It's at the very bottom of the page

The text of the notice and revenue ruling are attached.

Part 1-Section 105.–Amounts Received under Accident and Health Plans

[eno_]

The HMO model cannot be fixed. the only way forward is to go back to indemnity insurance for catastrophic cases and MSA/HRAs for everyday expenses. Watch how quick the medical costs "problem" shapes up when this happens.

[Free the USA]

Bump

[Salvation]

The little-noticed ruling is a great leap forward for patient-directed health care. Over time it could signal the end of double-digit increases in employer health-care costs, and thus the end of the era of stuffing employees into unpopular health-maintenance organizations.

Shout it from the roof-tops!

[Action-America]

Ho, hum.

Just another meaningless ploy by the IRS and it's supporters (including Duh-bya) to try and make the gullible forget for a while, that the IRS is a much larger problem than all of the health care problems combined.

Sure it does have a positive effect in the health care arena.  But, the IRS doesn't give away a benefit, without knowing that they will receive a much greater benefit on the back side.  As a result of the terrorist attacks and the USA Patriot Act, the IRS is now waging a virtual war on wealth and they know that many people in the US are crying foul, as a result.  This is nothing more than a token move aimed at exactly those people - conservatives - who have been opposed to the recent IRS intrusions.  It gives conservatives something that they dearly desire, but will have little effect on taxes collected, while diverting the unwanted attention from their recent treachery, that has been coming from those same conservatives.  Furthermore, since this ruling came from the IRS and not from legislation, the IRS can easily revoke it at a convenient later time.

Cheer this ruling.  But don't act like it makes the IRS any less treacherous.  In fact, it just shows how devious they really are.

 

[snopercod]

This sounds like a great plan to me. Most people in the construction industry have nothing at all, other than workman's comp.

I wonder if it covers dentistry and eye exams/glasses? IOW, how do they define "medical"?

[The Raven]

>>Thanks so much! This is an issue near and dear to my heart.

Yep...and it's voluntary

[TryMe]

See post #28

[Henrietta]

When I click on the links at the bottom, it says "error, file not found." Too bad they don't mention the number in the press release.

[donozark]

What is the level/quality of care from a "nurse practitioner?"