RightNation.US
News (Home) | Righters' Blog | Hollywood Halfwits | Our Store | New User Intro | Link to us | Support Us

RightNation.US: Trump Just Revolutionized Health Care — And Nobody Noticed - RightNation.US

Jump to content

Page 1 of 1
  • You cannot start a new topic
  • You cannot reply to this topic

Trump Just Revolutionized Health Care — And Nobody Noticed Rate Topic: -----

#1 User is offline   Liz 

  • ***-----------***
  • Group: Moderator
  • Posts: 51,163
  • Joined: 28-February 03

  Posted 19 June 2019 - 02:49 PM

Trump Just Revolutionized Health Care — And Nobody Noticed

Issues & Insights
I & I Editorial Board
19 June 2019

Excerpt:

Few have ever heard of “Health Reimbursement Accounts,” but they could fundamentally change the nation’s health care system — for the better — and destroy the Democrats’ case for socialized health care.

Late last week, the Trump administration finalized rules that will let companies put money into tax-exempt HRAs that their employees could then used to buy an individual insurance plan on their own. Seems like no big deal, right? Except it will start to unravel a 77-year-old policy mistake that is largely responsible for many of the problems the health care system suffers today.

Back in 1942, the Roosevelt administration imposed wage and price controls on the economy. But it exempted employer-provided benefits like health insurance, and the IRS later decreed that these benefits wouldn’t be taxed as income.

The result was to massively tilt the health insurance playing field toward employer-provided insurance. Today 88% of those with private insurance get it at work.

The massive tax subsidy — now valued at more than $300 billion — also encouraged overly generous health plans, because any health care paid by insurers was tax exempt, while out of pocket spending had to come from after-tax dollars.

So not only did this Roosevelt-era mistake create an employer-dominated health insurance market, it made consumers largely indifferent to the cost of care, since the vast bulk of it was picked up by a third party.

But while health care experts across the political spectrum recognize this mistake, Democrats’ response has been to get the government even more involved in health care, with the latest proposal a total government takeover under the guise of “Medicare for All.”

Republicans, to their credit, have been pushing in the opposite direction. The introduction of Health Savings Accounts — a GOP reform idea Democrats fiercely opposed — 14 years ago helped to remedy one of the tax distortions, by allowing some people to pay out of pocket costs with pre-tax money.

Even with all the restrictions Congress put on HSAs, the market for high-deductible HSA plans exploded — climbing from nothing in 2005 to nearly 30% of the employer market today. By the end of last years, consumers had saved up $10 billion in these accounts.

The rise in these “consumer directed” plans was at least partially responsible for the slow-down in health spending in recent years, according to official government reports, as consumers increasingly started shopping around.

Trump’s HRA rules will have a far more profound impact.

Under the plan, employers will be able to fund tax-free Health Reimbursement Accounts for their workers, who can then use the money to buy an individual insurance plan — thereby taking another step toward fixing the 77-year-old tax distortion. The rule also lets employers fund a different account to buy cheaper “short-term” plans.

“This subtle, technical tweak has the potential to revolutionize the private health insurance market,” wrote Avik Roy, one of the smartest health care experts around, in the Washington Post.

The administration figures that 800,000 employers will eventually move to HRA plans, and 11 million workers will get their benefits this way.

*snip*

Full Editorial
0

#2 User is online   Wag-a-Muffin (D) 

  • Still clinging bitterly. . .
  • View blog
  • Group: Blog Moderator
  • Posts: 19,542
  • Joined: 03-November 04

Posted 19 June 2019 - 03:16 PM

Love your avatar. (I don't even think I have it any longer. I'll try to sneak it in a RedState toon.)

And my on-topic comment. "Good for him!"
0

#3 User is offline   Dean Adam Smithee 

  • School of the Cold Hard Facts
  • View gallery
  • Group: Platinum Community Supporter
  • Posts: 20,755
  • Joined: 11-December 04

Posted 19 June 2019 - 03:20 PM

I distrust both congress and the federal bureaucracy to doing useful with this without first lining their own pockets at our expense.

The fix is simple: Simply make ALL health expenses tax deductible. Problem Solved. Cased Closed. No NEED to set up "Health Reimbursement Acounts" or ANY account for that matter. Just pay for it. Save the receipt for tax day.

Anything complicated than that? Somebody is being swindled by the thieving bastards inside the beltway and at BigPharma/BigMed.
0

#4 User is offline   gravelrash 

  • I wish they all were punk rock girls
  • Group: +Copper Community Supporter
  • Posts: 15,061
  • Joined: 24-June 03

Posted 19 June 2019 - 03:22 PM

Quote

Late last week, the Trump administration finalized rules that will let companies put money into tax-exempt HRAs that their employees could then used to buy an individual insurance plan on their own. Seems like no big deal, right?


It's a hyuuuuuuuuuge deal! My employer's health insurance is so freaking expensive. Yes, I want more choice. Democrats love freedom of choice. Right?
0

#5 User is offline   Liz 

  • ***-----------***
  • Group: Moderator
  • Posts: 51,163
  • Joined: 28-February 03

Posted 19 June 2019 - 03:42 PM

View PostWag-a-Muffin (D), on 19 June 2019 - 03:16 PM, said:

Love your avatar. (I don't even think I have it any longer. I'll try to sneak it in a RedState toon.)

And my on-topic comment. "Good for him!"

Thanks, I love it too! :)
0

#6 User is online   Tikk 

  • Oh Rrrrrreeeaaaally?
  • Group: Bronze
  • Posts: 8,729
  • Joined: 16-December 03

Posted 19 June 2019 - 04:24 PM

Watch Obama take credit for it .....
0

#7 User is offline   Bubbajoebob 

  • M dwarf stars
  • Group: +Bronze Community Supporter
  • Posts: 643
  • Joined: 28-July 09

Posted 19 June 2019 - 04:32 PM

I wish they'd do something about the current use-it-or-lose-it system of health saving accounts. It means I've got to guess what my family's medical and dental costs will be next year, then set it up somewhat lower than that so I don't end up leaving unspent money in at the end of the year and lose it. That means the account is good if there's a foreseen expense, like the birth of a baby or my wife's hip surgery. But it's useless for unforeseen emergency expenses.
0

#8 User is offline   USNJIMRET 

  • Rule 1:The Chief is right Rule 2:If in doubt, check Rule 1
  • View blog
  • View gallery
  • Group: Platinum Community Supporter
  • Posts: 20,264
  • Joined: 28-February 03

Posted 19 June 2019 - 05:28 PM

Quote

The massive tax subsidy

Stopped right there.
Anyone who claims that NOT taxing something equates to the taxpayer subsidizing said something is a damned liar!

0

#9 User is offline   gravelrash 

  • I wish they all were punk rock girls
  • Group: +Copper Community Supporter
  • Posts: 15,061
  • Joined: 24-June 03

Posted 19 June 2019 - 05:39 PM

View PostBubbajoebob, on 19 June 2019 - 04:32 PM, said:

I wish they'd do something about the current use-it-or-lose-it system of health saving accounts. It means I've got to guess what my family's medical and dental costs will be next year, then set it up somewhat lower than that so I don't end up leaving unspent money in at the end of the year and lose it. That means the account is good if there's a foreseen expense, like the birth of a baby or my wife's hip surgery. But it's useless for unforeseen emergency expenses.


Like a bank cashing your savings account because you didn't take out a loan.
0

#10 User is offline   Dean Adam Smithee 

  • School of the Cold Hard Facts
  • View gallery
  • Group: Platinum Community Supporter
  • Posts: 20,755
  • Joined: 11-December 04

Posted 19 June 2019 - 05:42 PM

View PostBubbajoebob, on 19 June 2019 - 04:32 PM, said:

I wish they'd do something about the current use-it-or-lose-it system of health saving accounts. It means I've got to guess what my family's medical and dental costs will be next year, then set it up somewhat lower than that so I don't end up leaving unspent money in at the end of the year and lose it. That means the account is good if there's a foreseen expense, like the birth of a baby or my wife's hip surgery. But it's useless for unforeseen emergency expenses.


EXACTLY. It's flat-out thievery masquerading as a 'benefit'. Yes, it works for SOME people... but then, SOME people can go to Vegas or the local Indian Reservation and beat the odds, too. For a while.

But, over time.... The House ALWAYS Wins. They've deliberately structured it that way.

At least here in GA you can put up to $2K a year in. That's nice if you can predict precisely $2K in health expenses. If you can't, you can roll over $500 to the first three months of next year (which in itself is a swindle. Think about it: If you haven't spent the $2K over the past 12 months, or an average of $500 per quarter, then what are the odds you're suddenly going to spend $500 in the NEXT quarter ON TOP OF the $2K you're putting aside the next year??? Riddle me THAT, Batman.

Problem was... At the time HSAs were created in '03, both the Senate Majority Leader (Trent Lott) and the house Majority Leader (Tom Delay) were both giving hand-jobs to the healthcare lobby in anticipation of future jobs rather than working for us (mere) citizens.

Former House Majority Leader Tom DeLay signs lobbying deal with Idaho healthcare firm

Look, as especially a small-biz employer, I HATE Obama and Obamacare as much as anyone. But I also have to blame the Republican'ts sitting there with their thumbs up their asses during most of the GWB era, in the face or escalating health costs and increasing gov't regulation, for CAUSING Obama.

I'm glad that TRUMP won in '16. But I'd rather that he'd have won as the "Reform Party" Candidate in '00, except that the Reform Party imploded during the primary season between the Ventura and Buchannan factions (FWIW, I was on the Buchannan side). That SUCKS. It royally sucks old teabags. The ground we've lost since since, I'm not sure can be reclaimed. It's the zeitgeist of '16/'20 vs '00.
0

#11 User is offline   spt 

  • <no title>
  • View gallery
  • Group: Bronze
  • Posts: 3,862
  • Joined: 07-October 03

Posted 19 June 2019 - 05:51 PM

they should also make buying insurance across state lines as well so you can buy any plan you want no matter where the insurance is based. I think they were suppose to get rid of that but not sure if they did. If they have then never mind. lol
0

#12 User is offline   moocow 

  • <no title>
  • Group: +Bronze Community Supporter
  • Posts: 1,105
  • Joined: 18-December 04

Posted 20 June 2019 - 02:42 AM

View PostBubbajoebob, on 19 June 2019 - 04:32 PM, said:

I wish they'd do something about the current use-it-or-lose-it system of health saving accounts. It means I've got to guess what my family's medical and dental costs will be next year, then set it up somewhat lower than that so I don't end up leaving unspent money in at the end of the year and lose it. That means the account is good if there's a foreseen expense, like the birth of a baby or my wife's hip surgery. But it's useless for unforeseen emergency expenses.

I think you're talking about an FSA (flexible spending account). Those are "use it or lose it" accounts. A Health Savings Account does actually carry over. It's actually a lot like an IRA, but for health care expenses. You can even invest the money in the account. However, any withdrawals from the account have to be medically related. (Not sure if you can withdraw for non-medical, but pay a penalty. I think you can, though).
0

#13 User is online   RedSoloCup 

  • <no title>
  • Group: +Copper Community Supporter
  • Posts: 5,278
  • Joined: 05-June 15

Posted 20 June 2019 - 07:05 AM

View PostTikk, on 19 June 2019 - 04:24 PM, said:

Watch Obama take credit for it .....


:yes:
0

#14 User is online   Hieronymous 

  • Men with ropes around their necks don't always hang
  • Group: Platinum Community Supporter
  • Posts: 9,048
  • Joined: 16-April 09

Posted 20 June 2019 - 08:49 AM

View PostUSNJIMRET, on 19 June 2019 - 05:28 PM, said:

[/left][/size][/font][/color]
Stopped right there.
Anyone who claims that NOT taxing something equates to the taxpayer subsidizing said something is a damned liar!


Kind of sounds like the question, "How are we going to pay for these tax cuts?"
0

#15 User is online   Hieronymous 

  • Men with ropes around their necks don't always hang
  • Group: Platinum Community Supporter
  • Posts: 9,048
  • Joined: 16-April 09

Posted 20 June 2019 - 08:50 AM

Seems to me that the biggest healthcare cost driver is insurance.
0

Share this topic:


Page 1 of 1
  • You cannot start a new topic
  • You cannot reply to this topic

1 User(s) are reading this topic
0 members, 1 guests, 0 anonymous users