Tax Update Blog: Permalink
« Previous · Tax Update Blog Home · Next »
Now that Health Savings Accounts are growing in popularity, will they be snuffed?
November 18, 2008
Benefitsblog passes on a report that HSAs are becoming more widespread. Unfortunately, according to Benefitsblog, they may fall victim to disorganized thinking in the coming administration:
Regarding whether HSAs will survive the next administration, the article states that "the plans may not have a White House advocate." The article quotes an advisor to the President-elect as saying that "medical benefits that shift costs to employees" would not be consistent with the upcoming President's position on health care.
Hey, Mr. "advisor to the President-elect": employees already bear 100% of the costs of medical benefits. Benefits aren't paid using the cash that grows on a magical benefits tree that grows in the H.R. department. When hiring an employee, an employer looks at the total cost of the employee package - wages and benefits. If you want to put more benefits in the package, you have to take out wages to make room for them. More benefits = less wages. If you have to make a profit to keep going - a constraint unfamiliar to many in the public sector - there is no third way.
Bookmark: del.icio.us • Digg • reddit
Tax Updates
Subscribe to Tax Updates
The items included in the Tax Update Blog are informational only and are not meant as tax advice. Consult with your tax advisor to determine how any item applies to your situation.
Joe Kristan writes the Tax Update items, and any opinions expressed or implied are not neccesarily shared by anyone else at Roth & Company, P.C. Address questions or comments on Tax Updates to
Search Tax Updates
Friends and Neighbors
Economics Nerds
Hard-Core Tax Nerds
Gigablogs
Insurance Folk
Goners
Legislation
Tax Update Data Feeds
Comments
The closed-minded approach from the left never ceases to amaze me. They literally must think benefits dollars grow on trees.
Moreover, it is ludicrous to restrict the definition of an acceptable health care plan to one that provides those goofy co-pays for employees.
You don't buy insurance to cover flats on your car. And it makes even less sense to buy insurance to cover the smallest possible medical expense -- an office visit.
There is virtually zero risk of going bankrupt at the Dr's office. Yet, for some insane reason, Democrats seem to think Dr's office co-pays are the single most important ingredient in the health care mix.
A health savings account plan, properly funded, actually decreases an employee's out-of-pocket costs to zero dollars. Why is no one else mentioning that fact?
Posted by: C. D. Richard, the health savings account king | November 19, 2008 12:49 AM
Excellent post! You just can't make this any more simple.
Posted by: Martin Trussell | November 19, 2008 9:46 AM