The answer to business owners healthcare costs
A revolution in healthcare has taken without many people even noticing the changeover into 2009. This significant change took place without the help of government healthcare agencies, media outlets, or or professional politicians. The switch is from traditional comprehensive health plans to leave her health savings accounts.
While presidential candidates were proposing complicated and far-reaching health-care reform many insurance companies, doctors, HR departments, and insurance agents had already discovered and started using what could be the answer to America’s health care challenges. In 2003, a high deductible health plan (HDHP) was combined with a health savings account (HSA). Many have quietly been taking advantage of this remarkably simple and affordable healthcare combination.
Simple economics is why this quiet revolution has begun, and it’s quickly spreading throughout the business community. If you are currently purchasing health insurance for yourself or others you’ll immediately see the value of this combination compared to comprehensive insurance.
With this combination of HDHP and HSA even the smallest of small businesses and the largest of corporations can afford to offer their employees health protection in a much smarter way than ever before, thereby providing insurance to even more Americans. Individuals without employer-provided or government-provided insurance, such as the self-employed, can also afford to have security against catastrophic injury and illness. And there is even room for the government to utilize this new system to distribute healthcare dollars however it wishes without the current hassles and bloated bureaucracies involved in regulating, pricing, and policing every aspect of healthcare.
Here’s how it works: An HDHP is a health insurance policy that begins paying for medical costs after a high deductible has been met. The Haida Dr. bull is a starting point, about $1100 and going up from there depending on the price you or your employer are willing to pay for the coverage. This makes the HDHP option more like true insurance as it will typically only be used for catastrophic illnesses or injuries and not for routine health care.
If a complete government takeover of the healthcare industry can be avoided then widespread use of HDHPs and HSAs will eventually bring the era of managed care and comprehensive medical insurance to an end, taking with it the tremendous havoc it has brought to our nation with its massive insurance bureaucracy, complicated insurance plans, skyrocketing prices, and restrictions on both patients and doctors. Market forces would return to most of healthcare, sparking a rise in competition for prices, quality, and innovation as doctors, hospitals, and pharmacies all compete for healthcare dollars that patients themselves control free from the artificial price inflations and extra payroll costs caused by comprehensive insurance. The complexity of modern health insurance would be replaced with a nearly unimaginable return to simplicity.
For example, a company currently providing health insurance coverage to one of its employees for $600 per month could stop providing the current comprehensive health coverage and replace it with an HDHP for about $200 per month. The $400 savings could be put directly into the employees HSA. Now that employee accumulates that $400 every month to use on more frequent health care expenses and to be saved for future deductibles while having the protection of an HDHP, in case of a catastrophic illness or injury. A small business that could never afford to offer $600 per month healthcare coverage can now offer an HDHP by itself and might even consider contributing to the employees HSA. this would expand the number of people who are insured because this business, which before couldn’t afford to offer health insurance can now do so. the health savings account money will always belong to the employee for their healthcare expenses. They would always decide which doctors, what procedures, and what medicines they would choose to spend it on. In this simple scenario can easily be used by her government as well.
A great example is: a company is providing comprehensive health coverage for one of its employees at $600 per month would be able to stop providing this coverage, and offer an HDHP for around $200 per month. The $400 savings could be put into the employees HSA. The $400 is now available for more regular health-care costs and can be saved up for future deductibles and provides the protection of a HDHP, should something catastrophic occur. a small business who couldn’t afford the $600 could now offer its employees the HDHP and may even be able to contribute to the HS a, thereby offering medical benefits where it cannot today. This expands the number of people who can now afford health care coverage. Employees would always decide what doctors to see, what procedures to have, and what medicines they spend the money on. This same scenario would make a great option for the government as well.
More information about HSAs can be found at the U.S. Department of the Treasury website http://www.ustreas.gov/offices/public-affairs/hsa/faq.shtml.