Health Savings Account-Health Savings Account Info

*juicy fruit* asked:


Calculate the loss of real value in a $10,000 saving account if inflation is 10% a year for three years versus the loss of real value if inflation remains around 3%. How much less would that savings account is worth if inflation goes up? (Do not consider the interest paid.)

Erma Caccamo

Miss November 1993 asked:


4. Which type of debt is the least attractive for a consumer? (Points : 1)
Unsecured debt
Secured debt
Mortgage debt
Lease debt

5. If you receive paid sick days, personal days, and/or paid vacation, what type of employee are you? (Points : 1)
Salaried
Hourly
Management
Lucky

6. Which of the following is an example of realized income? (Points : 1)
Your salary
The end-of-year bonus you hope to receive
An anticipated inheritance
Your weekly poker winnings

9. What is another name for your “take home pay”? (Points : 1)
Gross income
Net income
Taxable income
Internet income

11. What is the second roadblock most people face in running their savings programs? (Points : 1)
Lack of a savings account
Insufficient income
Seasonal overspending
Unexpected expenses

14. Which of the following is NOT an involuntary salary deduction? (Points : 1)
Federal income taxes
Unemployment insurance premiums
Social Security payments
Health insurance premiums

16. What do you need to do if you’re facing a monthly deficit? (Points : 1)
Increase your net income
Reduce your expenses
Both a and b
Neither a, b, or c

Anne

Buffalo soldier asked:


So apparently the stimulus isn’t working, the multiplier effect didn’t really take root as it should have, recipients of the stimulus money seem to be saving their money instead of spending it so that it could have a ripple effect across the economy, seems to me the MPS is at it’s highest in years.

The Health Care bill has had companies saving and hiring less because of future expenses. Banks are already reluctant to lend money and now more regulation will be out there which will make them even more reluctant to lend, which will force companies who rely on lines of credit to cover expenses in the short term will very little monetary options, and could ultimately force them out of business.

The only way he could save us, is to repeal his health care plan and create incentives like the Health Care savings account, and allow interstate commerce of Health Care. Make these insurance companies compete with each other.

No cap and trade bill, it’s a job killer and anyone that took Econ 101, and 102 would know this. Instead subsidize companies in the renewable energy sector, because this will eventually bring increase technological advancement in the field and make it more cheaper than what we have currently.

The financial reform bill should include freddie and fannie, and no new taxes, because in the end the consumer will take the tab.

We could argue all day long about how the Prez’s economic policies will affect the SRAS and AD, but it’s definitely not working.

Joyce

Paul asked:


And so, it might be unwise for a healthy person to purchase health insurance on the individual open market?

First, we have the insurance companies as a profit-taking industry. They exist to make money. So obviously they take in more premiums than they pay out for medical expenses. Right off the bat, we have a negative expected value for the buyers of health insurance. In other words, you should expect that the premiums you pay to the health insurance company will be more than the benefits you get back, on average.

But on top of that, for a HEALTHY person, the difference would be even greater. Since your risk is grouped together with the risk of more unhealthy people (obese, smokers, etc), you’re basically subsidizing their insurance. So the difference between your premiums and the expected benefits you get back is even more.

It seems like a very fit, health-conscious person is really taking it on the chin by buying health insurance in the individual market. Maybe they’d often be better off by just building up a health savings account and self-insuring?

Refugio Mcinturff

dolphin314etc asked:


Healthcare — Price Elasticity of Demand — Could it Solve Our Problem?
You remember from Econ 101 “Price Elasticity of Demand” —- as the price goes up the demand for a good or service goes down.

If hamburgers are $1 each, I want lots of hamburgers.

If hamburgers are $4 each, I want one hamburger, maybe two.

If hamburgers are $8 each, I want one, maybe

If hamburgers are $18.00 each, I don’t want any, maybe I’ll try a hot dog.

With healthcare there is no hot dog. Maybe I’ll try sufferring, or a Shaman, or dying, or Voodoo, or Homeopathic/Ayurvedic medicine. Those are not real possibilities for most Americans. There’s no real substitute for healthcare that anybody I know would want.

But how much healthcare I buy could very easily be a function of how much they want for it. I see my doctor about 4 times per year at $75 each visit. If he wanted $10 per visit, I might see him 6 times per year. If he wanted $500 per visit, I might see him only in dire emergencies.

The load on the healthcare system in terms of patient throughput is a function of the cost to the patient.

Socialized medicine in which the costs to the patients are nil or almost nil could result in a huge load on the healthcare system.

Co-pays of 25% or 40% (which could come out of health savings accounts) on insurance contracts that are fair but affordable, would result in a lowering of health services utilization nationwide.

We might turn out to be over-built and over staffed in the healthcare area.

Couldn’t happen you say.

It happened in housing.

Nobody thought it could happen there.

But suddenly the prices of keeping up payments on the mortgages got too high.

People walked away.

The demand for housing got smaller, or put another way, the housing demand got ot be for smaller houses or maybe just apartments.

This could happen in healthcare — price elasticity of demand.

If demand for healthcare came under control, and got down to a moderate level, the healthcare crisis would be over. So making healthcare cheaper is not the answer. We might be better off making it more costly to the patient in terms of their direct cash payment ot the healthcare provider (their Co-pay).

Socialism didn’t solve the housing problem — rent controls did not work.

Socialism didn’t solve the gasoline problem — rationing did not work

Why is socialism so likely to solve the healthcare crisis?

I think it may just result in the very runaway demand and runaway price escalation that the government is trying to avoid. A single broke payer is no payer at all. N’uff said.
To Tehabwa:

Six visits a year even at $10 per visit would not be reasonable if they weren’t necessary, so you have me on that one. I was trying to teach about price elasticity and my example didn’t have the ideal choice of numbers.

On people dying and morality — Ya I don’t think we see that exactly the same way. You are more equalitarian/democratic than I am. In my little town there’s a drug addict that every six months or so gets herself into such a lethal OD that she needs a complete blood transfusion to save her life. This greatly depletes our local blood bank, we have to buy more to keep it ready for regular accident cases. She has no money. So she never pays. My morality might allow a few more like her to be snuffed out if they can’t pay. Call me an immoral guy I guess from your perspective — not so much a humanitarian as you are. This a still a capitalist nation. Cash is how we allocate goods and services. You say no one is talking “socialism”. But, maybe YOU are, right?

Jaime Lazar

AnonymousChris asked:


My wife and I live in an apartment, I’m 22 and she’s 19.
Rent is $599 a Month
Water is around $20 a month.
Electric is about $90 a month.
Phone (cell) is $90 a month.
Cable and net are $95 a month.
Renters insurance if $17 a month
Car insurance is $55 a month
$20 a week on gas
$70-$100 a week on groceries (and other stuff we need)

I have 1 part time job -computer tech- (3 hours a day) making about $125 a week. (because of this job I get to take college classes for free)

And another part time job -designer for sign shop- (4 hours a day) making $275 a week. (because of this job, I get all mechanical work to my car done free)

My wife doesn’t work, and occasionally I Get a freelance graphic design job. Technically, Im still enrolled in college. I have 3 more classes to take for a bachelors majoring in visual communication (graphic design). I eat at restaurants maybe 2 times a month but I don’t have health insurance or savings account- so if something major happens, I’m screwed. I have a comfortable life and have no government assistance. I can’t afford everything I want (but who can, right?)~ but I don’t think I’m in middle class, because I don’t really make much.

I’m in no threat of losing my jobs either.

Andy

Why Not Love One Another asked:


Please do not misunderstand there are many people who most of their lives have struggled just to feed their families and keep a roof over their head….

But for the average american family, such as this….

Have two, three cars.
Own a home large enough for 2 families or more to live in.
Have a savings account, retirement plan, health insurance, life insurance, credit cards, college plan or plans for children.
Own 2 or more cell phones, computers, TVS.

Seriously asking, in what way makes it ‘ Hard Times ‘ …..?

Margherita Esquivez

Lance asked:


HSAs make individuals responsible for their own health care decisions and help people learn how to manage expenses over time as opposed to regular insurance in which cost is more opaque. In most HSA plans, preventative care is included for no extra cost. Other expenses are borne first by the participant at the discounted group rate and then covered after the deductible.
Tort reform is obvious. Doctors pay hundreds of thousands in malpractice insurance each year while punitive damages are not capped. Extra procedures and tests are constantly performed in fear of lawsuits. We all bear the cost so that lawyers can pad their pockets with frivolous lawsuits.

Franklin Gelder

Xie Xie Niii asked:


“President George W. Bush has named our new society the ‘ownership society’. Private property is not just for a few wealthy capitalists; it is for everyone. Bush wants to see homeownership extend to a larger fraction of our society, and he wants to encourage people to invest in the stock market through retirements savings accounts in Social Security. Private property will extend far beyond its traditional realm, into health savings accounts and school vouchers.”

I am confused as to why “private property” is implied to be affordable only for wealthy capitalists. Isn’t private property just your house, your car, and your belongings? Since when have these things been unaffordable? Or does “private property” refer to something else here?

What is the “traditional realm” of private property he is referring to here? So health savings accounts and school vouchers are also considered private property?

Thank you so much in advance.

Ladawn Mallalieu

Mark B asked:


Derek just got into an accident while skiing, and he needs hospitalization and post hospital recovery. Every week he is in recovery is a week’s salary he loses. He has three options for treatment:

Option 1 has $2,000 of hospital costs and a one-week recovery period with one doctor’s visit.

Option 2 has $1,500 of hospital costs and a two-week recovery period with two doctor’s visits.

Option 3 has $1,000 of hospital costs and a four-week recovery period with four doctor’s visits.

7.1. Derek might have any of a number of different kinds of health plans. Which kind of health plan would make him most likely to choose option 1?

A. An HMO plan with zero copayment

B. A PPO plan with a 20% copayment

C. A high-deductible plan that accompanies a Health Savings Account

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Derek just got into an accident while skiing, and he needs hospitalization and post hospital recovery. Every week he is in recovery is a week’s salary he loses. He has three options for treatment:

Option 1 has $2,000 of hospital costs and a one-week recovery period with one doctor’s visit.

Option 2 has $1,500 of hospital costs and a two-week recovery period with two doctor’s visits.

Option 3 has $1,000 of hospital costs and a four-week recovery period with four doctor’s visits.

7.2. Derek’s doctor might recommend one plan or another, depending on the way in which he or she is paid. Which type of doctor would be most likely to recommend option 3?

A. A doctor who works for a public health service at a fixed salary

B. A doctor who works for an HMO and is paid according to how many patients she sees per year regardless of how many times she sees them

C. A fee-for-service doctor who is paid each time he or she sees a patient

——————————————————————————————————————————————————————————————————————————————–

Derek just got into an accident while skiing, and he needs hospitalization and post hospital recovery. Every week he is in recovery is a week’s salary he loses. He has three options for treatment:

Option 1 has $2,000 of hospital costs and a one-week recovery period with one doctor’s visit.

Option 2 has $1,500 of hospital costs and a two-week recovery period with two doctor’s visits.

Option 3 has $1,000 of hospital costs and a four-week recovery period with four doctor’s visits.

7.3. Consider three scenarios: (1) Derek earns $100 per week, (2) Derek earns $400 per week, and (3) Derek earns $1,000 per week. From society’s point of view, does it matter how much Derek earns when figuring out the most efficient treatment option?

A. Yes – if Derek’s salary is higher, it’s more efficient for him to have the more expensive treatment with the shorter recovery time.

B. No – it’s always most efficient for Derek to have the option that involves the least recovery time.

C. Yes – if Derek’s salary is higher, it’s more efficient for him to have the less expensive treatment with the longer recovery time.

D. No – it’s always most efficient for Derek to have the option that involves the lowest monetary cost.

——————————————————————————————————————————————————————————————————————————————–

Derek just got into an accident while skiing, and he needs hospitalization and post hospital recovery. Every week he is in recovery is a week’s salary he loses. He has three options for treatment:

Option 1 has $2,000 of hospital costs and a one-week recovery period with one doctor’s visit.

Option 2 has $1,500 of hospital costs and a two-week recovery period with two doctor’s visits.

Option 3 has $1,000 of hospital costs and a four-week recovery period with four doctor’s visits.

7.4. Suppose Derek earns $1,000 per week. Suppose further that he belongs to an HMO, which is trying to minimize its monetary costs, so it is only willing to pay for option 3. The HMO claims that by doing so, it is reducing the cost of health care, which is a drain on the U.S. economy. Is this an accurate representation of what the HMO is doing in this case? (Hint: Refer to your previous answer. Is it efficient for Derek to have option 3 if he earns $1,000 per week?)

A. Yes; the HMO has reduced society’s overall cost

Y