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Hsa Insurance Premiums Question & Answers

2015 September 22
by Sarah Fields

Susan asks…

What do you think will happen to the economy if healthcare is passed?

Since it will cost $ 342 Billion every year in higher insurance fees and new taxes?

Sarah Fields answers:

Nothing.

Here’s what WILL happen, if the Senate bill passes with its prohibition on pre-existing condition exclusions:

1. Most people will drop their health insurance. If they can’t be declined for a pre-existing condition, they will just wait until they get sick, then sign up for insurance when they need the benefits. It’s cheaper to pay the fine than pay the insurance premiums, so most people will just pay the fine.

2. Most employers will stop providing health care benefits to their employees. The fine is cheaper than paying for the benefits, so they will just pay the fine.

3. The percentage of the population that is uninsured will approach 90%.

4. The only people who have insurance will be the ones who have an ongoing treatment program, and they need the benefits. Only sick people will buy insurance.

5. The health insurance companies will go bankrupt. If they raised the premiums to pay for the benefits they are paying, even sick people would drop their insurance because it would be cheaper to pay out of pocket than to pay for the premiums.

6. Insurance companies will stop selling health insurance, just like they stopped selling homeowner’s insurance along the Gulf Coast after the extreme claims for mold problems and several hurricanes. YES, INSURANCE COMPANIES ARE NOT REQUIRED TO SELL INSURANCE, AND THEY WILL STOP SELLING IT IF IT BECOMES UNPROFITABLE.

7. Insurance companies will discontinue all existing health insurance policies as quickly as they legally can, to cut their losses.

8. You will not be able to purchase health insurance. Anywhere. Period.

9. The only health plans available will be self-savings plans like Health Savings Accounts. The only advantage would be putting in pre-tax money. But you can count on the Democrats to repeal that tax advantage, so it will be nothing but a savings account with no benefit. So most people will not participate in HSA’s either, thinking they would rather put the money into their own savings accounts so it’s available for other “emergencies,” such as vacation trips and a new car. Pretty much like the whole 401k plan thing in place of a traditional pension plan. The typical near-retiree has an average of $2,000 stashed away in a 401k plan. Ya, we see how well that worked….

So the traditional health insurance policy will cease to exist, and health insurance will be transformed into HSA’s just like traditional pension plans were transformed into 401k’s. That is, it will be a purely imaginary fantasy that people are in any way prepared for the inevitable needs, and everybody will end up totally dependent on the government for their health care, just like the vast majority will be totally dependent on the government for their retirement.

But because virtually no money will be involved in the health care system anymore, this will have virtually no effect on the economy.

Helen asks…

Anyone know a great HSA policy for traveling nurses?

We sign 13 wk contracts and can be employed through several companies and work in different States through the year.
Would like a policy that the agencies (companies)can pay premium directly to. Would help me avoid additional tax.
Thanks!

Sarah Fields answers:

Your question is unclear. It sounds like you want each separate agency to pay the premium during the time of the 13 week contract. If so that could turn into a logistical nightmare. The only way you could do that is to set up your premium payments quarterly and make sure that the first premium is due at the beginning of a 13 week contract (most premiums are due by the first of the month). Then, one month before the next premium is due you will need to contact the insurance company and change your billing to send the bill to the agency that you’ll be working for during the next quarter.

Are you also going to have the agency fund the HSA account? You’ll want to make sure that the insurance company will accept the HSA payment at the same time as the premium payment. There are several companies that will do this.

You’ll also want to make sure that the company has a nationwide network. Most companies are not in every state so that will narrow down your choices.

You should visit a local independent agent. This person knows the market in your area and can find any company that will meet your qualifications. The plans and premium is the same whether you use the agent or buy directly from the company.

Daniel asks…

What’s a typical cost for independent health and dental insurance?

The reason I’m asking is because I’m thinking of leaving journalism and delving into the world of full-time nannying. Besides being sick to my stomach with corporate America, I hope to one day go back to school for a degree with early childhood education. I love working with kids.

My only concern with this career move is losing the benefits that come with a corporate employer. Does anyone know the average monthly cost for dental, health and/or insurance? Any suggestions for insurance companies to go with?

Sarah Fields answers:

The premium for your health insurance when you go out on your own will vary significantly based on your age and gender.

I have seen decent policys as low as $111 per month for a young male and over $800 per month for someone in their late 50’s.

Keep in mind, when you are going into the self employed arena – and you are shopping for health insurance, you can not look at the benefits in the same fashion as your big corporate health insurance policys.

You need to look for the following:

1) minimal internal policy limitations – ie – limints on physical therapy, ambulance, in-patient hospitalization limits

2) Provider Network – make sure you get into a plan that gives you in network access to nationwide doctors

3) Rate guarantees – some carriers are offering 18 and 24 month rate guarantees

4) Get educated on Health Savings Account (HSA) qualified plans – they can save you significant premium and tax dollars

5) Pre-existing condition limitations – if you have pre-existing conditions, be sure to review any exclusions with the policy

6) Use a local broker / agent – they have the most knowledge regarding the policys that work the best in your local area.

Hope this helps

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