ObamaCare hurts Health Savings Accounts 4


By Tom Quiner

I am self-employed, the owner of a small business.  In order to control health insurance costs, my wife and I purchased a policy with a high deductible supplemented by a Health Savings Account (HSA).

The high-deductible policy reduced my premiums substantially.

The HSA allows me to save up to $5000 of tax deductible dollars to be used toward medical expenses, including dental, eyeglasses, and over-the-counter medications.

Because I pay many doctor bills directly until my deductible is reached, I have incentive to shop for the best price on prescriptions and some medical tests.  In other words, I am a conscientious consumer of medical products and services.

It makes sense.

Beginning January 1st, ObamaCare will cap my annual contribution at $2500 and will no longer allow me to purchase over-the-counter medications using my HSA (Section 9003).  ObamaCare reduces my benefits and raises my costs.  It creates a perverse incentive to purchase higher priced prescription medications which are deductible.

This is but one way ObamaCare will raise healthcare costs for middle America.

4 comments

  1. Hail to the Chief! I just found out that I will have to pay $100 more per month for health care insurance (have BCBS) effective January 1, 2011. That’s just the tip of the iceberg. I am but a simpleton but it does not take a Nostradamus to predict that the following will happen:
    1. Rates will continue to increase.
    2. Top executives of the insurance companies see the handwriting on the wall and will take their money off the top. They are poised to become early retirees.
    3. The private companies will fold. The gov. will not bail them out but will buy them off and it will become the Fannie & Freddie of health insurance.
    4. Everyone will go on the gov. plan (whatever that is)! And if you were the once privatized people, you will get to the rear while all the illegals, sorry ones who don’t want to work , and others are at the front and have been at the front since the beginning.
    5. The CEOs of the former insurance companies are now retired with millions.
    6. The death toll will rise because the quality of care will go down.

  2. Thanks, Tom! Your personal experience exacerbates what many are beginning to realize about the damage the Democrat stranglehold has foisted upon us in Obamacare! Several attempts are being made by conservative lawmakers to repeal it. Hopefully they will succeed! Many insurance Companies and small business owners are feeling the adverse effects of Obamacare and serious repercussions are happening to our economy and to individual families all over the Country.

    It is quite apparent that the Democrats who forced this bill into law aren’t willing to give up their “gold-plated” taxpayer-funded plan have no qualms about forcing the shoddy, (and probably illegal) plan on John Q. Public, It reminds one of an ancient adage that goes like this: What’s Sauce for the Goose is Sauce for the Gander” In other words, the politicians should be forced to subject themselves to Obamacare like the rest of us!

    Furthermore, of all those reportedly uninsured in our Country, there are at least 22,000, 000 of them who are illegal alien lawbreakers! It isn’t fair to demand those of us law-abiding citizens to shoulder that tax burden!

    Many serious objections to the bill is the sneaky way that abortions will be covered, (“as reproductive health care”), and that pro-life health care workers will be forced to perform them or lose their jobs. Additionally, care to the elderly will be rationed or withheld. CASE IN POINT: In one of his many speeches, President Obama said that in some cases, he advocates the “surgery should be skipped and the patient be given pain pills instead”!

    Hopefully Before Obamacare can utterly destroy our economy and the private healthcare industry, the politicians in WA will wake up!

  3. This is outrageous. The way you consume health care is the way everyone should be consuming health care, at least in that you have a reason to care about the cost of the goods and services you consume. I don’t think the politicians who supported this disaster of a bill are as stupid as it would seem. I think the truth is worse: they just don’t give a rats hindquarters about the economic sensibility of the bill and will do anything, no matter how misguided, to please their “base.”

  4. Hi Tom; I agree 100% with you on this. My family dumped our expensive health plan for a high-deductible plan & H.S.A. about 12 years ago – and saved over $6,000 the first year in premium alone! We have only met our deductible once, and I agree it has made us much better “consumers” of heath care. If everyone paid for their care as it was dispensed, I’m guessing they’d think twice about wasteful procedures or not taking a generic when it’s available, etc.

    Even if Obama-care wasn’t limiting our savings amounts so drastically, I have a feeling our plans will be disqualified at some point anyway — because they’re not “runny nose” insurance — that doesn’t fit Obama’s guildelines. Most plans will be forced out at some point because they won’t meet their guidelines to be “approved plans” so we’ll all end up on government plans at sme point anyway if it’s not repealed. The whole thing is so un-constinutional it’s ridiculous to me that our so-called elected leaders thought it would be a good idea to take away our freedoms like this.

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