Thursday, July 07, 2005
WSJ recommends HSAs to combat high premiums
[Annelena Lobb, "Health-Care Premiums Vary For Young Singles," The Wall Street Journal, 5 July 2005.]
The ranks of the uninsured include not only those without means, but many young singles who don't see the value of buying into a system that uses their money to subsidize the care of others. As younger people drop coverage, costs rise for everyone else. This article points out that more attractive options such as Health Savings Accounts may draw this segment of the population back into the market:
Ten million people between the ages of 25 to 34 lack health insurance, according to the U.S. Census Bureau.
Monthly private health-insurance premiums for young, healthy singles...vary by hundreds of dollars among the 50 most populous U.S. cities, according to a study released last week by eHealthInsurance.com, an online health-insurance agent for private individual and family policies run by insurance agency eHealthInsurance Services Inc. The company looked at all types of policies, including health-maintenance organizations and preferred-provider organizations.
Those in Long Beach, Calif., pay the lowest prices -- the lowest available monthly premium for a 30-year-old nonsmoker is $54 -- and the costliest insurance is in New York City, where similar coverage costs $334.
Someone with a high-deductible health-insurance plan could save money by opening a health-savings account, or HSA. Such an account allows individuals with certain high-deductible plans to save money in special accounts that grow tax-free. The money can then be withdrawn and used for most health expenses, such as eyeglasses and coinsurance, although it can't be used to pay for premiums. Contributions are tax-deductible. An individual with a $1,000 deductible, for example, could save that amount in an HSA and deduct it from his end-of-year tax bill.
[Matthew Hisrich, "HSAs Are Increasing Americans' Health Coverage," The Topeka Capital-Journal, 26 September 2004.
Matthew Hisrich, "State Mandates reduce insurance affordability," The Flint Hills Center, May 2004.
Matthew Hisrich, "Greatest Increase in Uninsured Found Among Wealthy," The Flint Hills Center, May 2004.]
[Annelena Lobb, "Health-Care Premiums Vary For Young Singles," The Wall Street Journal, 5 July 2005.]
The ranks of the uninsured include not only those without means, but many young singles who don't see the value of buying into a system that uses their money to subsidize the care of others. As younger people drop coverage, costs rise for everyone else. This article points out that more attractive options such as Health Savings Accounts may draw this segment of the population back into the market:
Ten million people between the ages of 25 to 34 lack health insurance, according to the U.S. Census Bureau.
Monthly private health-insurance premiums for young, healthy singles...vary by hundreds of dollars among the 50 most populous U.S. cities, according to a study released last week by eHealthInsurance.com, an online health-insurance agent for private individual and family policies run by insurance agency eHealthInsurance Services Inc. The company looked at all types of policies, including health-maintenance organizations and preferred-provider organizations.
Those in Long Beach, Calif., pay the lowest prices -- the lowest available monthly premium for a 30-year-old nonsmoker is $54 -- and the costliest insurance is in New York City, where similar coverage costs $334.
Someone with a high-deductible health-insurance plan could save money by opening a health-savings account, or HSA. Such an account allows individuals with certain high-deductible plans to save money in special accounts that grow tax-free. The money can then be withdrawn and used for most health expenses, such as eyeglasses and coinsurance, although it can't be used to pay for premiums. Contributions are tax-deductible. An individual with a $1,000 deductible, for example, could save that amount in an HSA and deduct it from his end-of-year tax bill.
[Matthew Hisrich, "HSAs Are Increasing Americans' Health Coverage," The Topeka Capital-Journal, 26 September 2004.
Matthew Hisrich, "State Mandates reduce insurance affordability," The Flint Hills Center, May 2004.
Matthew Hisrich, "Greatest Increase in Uninsured Found Among Wealthy," The Flint Hills Center, May 2004.]
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