Proposed limit on Flex accounts

[Jimmy Neutron]

 

[AtomicCEO]

Wouldn't this count as a reduction in federal spending that you should be in favor of?

 

Now people will be responsible for their own health spending rather than living off the government teet?

 

Republicans are complicated.

[cdrudge]

Aides to the Senate Finance Committee, which proposed the cap, defend it by saying it would help curb overuse of medical care. Money deposited in the tax-free accounts must be used within 2 1/2 months of the end of the plan year. That may create an incentive for people to spend all the money even if they don't have pressing needs.

So not only does my insurance company get to tell me if I'm sick or not, and tell me what medications are really necessary to help treat me if/when I am sick, now the government wants to tell me that I'm overusing my insurance company not allowing me to get better. Great.

 

As to needing an incentive for people to spend all the money, IT'S MY when I wore my first dressING MONEY TO BEGIN WITH. LEAVE IT THE HELL ALONE.

 

I wonder if/when this might trickle down to HSA. My company is considering switching to a high deductible plan ($6000 deductible) but 100% coverage after that's met. It qualifies for a HSA so it was possible, but if there are going to be similar limits for HSA, not a chance I'd consider it.

[westvirginia]

Wouldn't this count as a reduction in federal spending that you should be in favor of?

 

Now people will be responsible for their own health spending rather than living off the government teet?

 

Republicans are complicated.

 

You're just full of ignorance lately, aren't you?

[AtomicCEO]

You're just full of ignorance lately, aren't you?

 

No, I think that some people will find a reason to complain about every theoretical change that democrats consider, and then if a week goes by with nothing to complain about... they'll complain that democrats aren't doing anything.

 

It's noise. Nothing more.

[westvirginia]

No, I think that some people will find a reason to complain about every theoretical change that democrats consider, and then if a week goes by with nothing to complain about... they'll complain that democrats aren't doing anything.

 

It's noise. Nothing more.

 

That didn't seem to be the issue in the previous post.

[caddyman]

You're just full of ignorance lately, aren't you?

Lately...

[detlef]

So not only does my insurance company get to tell me if I'm sick or not, and tell me what medications are really necessary to help treat me if/when I am sick, now the government wants to tell me that I'm overusing my insurance company not allowing me to get better. Great.

 

As to needing an incentive for people to spend all the money, IT'S MY when I wore my first dressING MONEY TO BEGIN WITH. LEAVE IT THE HELL ALONE.

 

I wonder if/when this might trickle down to HSA. My company is considering switching to a high deductible plan ($6000 deductible) but 100% coverage after that's met. It qualifies for a HSA so it was possible, but if there are going to be similar limits for HSA, not a chance I'd consider it.

Odd, I've always understood the main difference between flex accounts and HSA is the fact that flex accounts had to be spent by a certain time and HSAs didn't. That is exactly why I was not interested in ever having a Flex account but really like the idea of HSAs. From what I gathered, flex really just made sense for people who had very predictable medical costs and knew they were going to spend the money anyway, so they might as well save the taxes on it. As a healthy guy married to a healthy woman without kids, we didn't exactly fit the mold.

 

 

How is the notion of having to spend all the Flex money all of a sudden a shocker? I thought this was the case all along.

[muck]

Interesting tidbit on HSA accounts:

 

Apparently, people over 65yrs old cannot have one.

 

Why do I know this?

 

My parents used to have one and now they don't.

 

...this makes no sense...

 

:puke:

[Ursa Majoris]

Odd, I've always understood the main difference between flex accounts and HSA is the fact that flex accounts had to be spent by a certain time and HSAs didn't. That is exactly why I was not interested in ever having a Flex account but really like the idea of HSAs. From what I gathered, flex really just made sense for people who had very predictable medical costs and knew they were going to spend the money anyway, so they might as well save the taxes on it. As a healthy guy married to a healthy woman without kids, we didn't exactly fit the mold.

 

 

How is the notion of having to spend all the Flex money all of a sudden a shocker? I thought this was the case all along.

+1.

 

Use it or lose it is a ridiculous concept. HSAs are a much better option.

[muck]

Use it or lose it is a ridiculous concept. HSAs are a much better option.

 

Unless you're over 65; see above.

[detlef]

Interesting tidbit on HSA accounts:

 

Apparently, people over 65yrs old cannot have one.

 

Why do I know this?

 

My parents used to have one and now they don't.

 

...this makes no sense...

 

:puke:

Well, they can still draw on it, right? They just can't contribute? News to me none the less, but I'm assuming the account just doesn't vanish, right?

[muck]

Doesn't vanish, but why shouldn't they still be able to contribute to it? Arguably, they still have at least 15yrs of life to live (and maybe as much as 30yrs, based on my family's tendency to live for a really long time). And, its not like their health care costs are going to drop down the road.

 

:mad:

[detlef]

Doesn't vanish, but why shouldn't they still be able to contribute to it? Arguably, they still have at least 15yrs of life to live (and maybe as much as 30yrs, based on my family's tendency to live for a really long time). And, its not like their health care costs are going to drop down the road.

 

:mad:

I'm not saying they shouldn't be, just needing clarification so I knew how irritated I should be.

[cdrudge]

Odd, I've always understood the main difference between flex accounts and HSA is the fact that flex accounts had to be spent by a certain time and HSAs didn't. That is exactly why I was not interested in ever having a Flex account but really like the idea of HSAs. From what I gathered, flex really just made sense for people who had very predictable medical costs and knew they were going to spend the money anyway, so they might as well save the taxes on it. As a healthy guy married to a healthy woman without kids, we didn't exactly fit the mold.

My previous company had a flex account. We didn't put a fortune in the account, but it did help. We usually would put a few thousand in the account. That covered doctor office visits, eyeglasses/contacts for myself and my son, 50% of dental visits, prescriptions, and deductibles. If you are very healthy, never go to the doctors office, and/or also have a family that fits that description, the advantages of a FSA is reduced...but even then most people still get a checkup, flu shot, or dental cleaning that could be covered.

 

It was nice knowing that at the beginning of the year I already had my deductible covered as it was split out across 52 paychecks and I didn't really see the money. Sure you could do the same thing with depositing the money in a bank account and earning a little interest, but the interest earned is almost trivial. The advantage of the Flex account over a HSA is that the employer fronts the money at the beginning of the year, and you pay the employer back throughout the year. If you have an accident on Jan 2nd, they money is already there to be spent. With a HSA, the money is only there if you actually deposited/saved it.

 

Also, if you leave a company prior to the full year, any flex account balance is lost. If you've contributed more to the account then what you've spent, you've forfeited the money. But if you've spent more of it then you've contributed, congratulations, you got a tax free gift you don't have to repay.

 

If you know you are going to have medical expenses throughout the year, there is no reason NOT to do a flex account. I'm a diabetic with high cholesterol and suffer from depression. My quarterly meds are about $300. I know I'm going to spend $1200 on medicine throughout the year so I might as well pay for it tax free.

[muck]

I'm not saying they shouldn't be, just needing clarification so I knew how irritated I should be.

 

Amount of irritation is directly proportional to your age.

[TimC]

The truth is the Government is praying you drop dead as close to 65 as possible. Every single policy is dictated towards this effect. The majority of the population must die at 65 years old for the Government to remain solvent.

[detlef]

My previous company had a flex account. We didn't put a fortune in the account, but it did help. We usually would put a few thousand in the account. That covered doctor office visits, eyeglasses/contacts for myself and my son, 50% of dental visits, prescriptions, and deductibles. If you are very healthy, never go to the doctors office, and/or also have a family that fits that description, the advantages of a FSA is reduced...but even then most people still get a checkup, flu shot, or dental cleaning that could be covered.

 

It was nice knowing that at the beginning of the year I already had my deductible covered as it was split out across 52 paychecks and I didn't really see the money. Sure you could do the same thing with depositing the money in a bank account and earning a little interest, but the interest earned is almost trivial. The advantage of the Flex account over a HSA is that the employer fronts the money at the beginning of the year, and you pay the employer back throughout the year. If you have an accident on Jan 2nd, they money is already there to be spent. With a HSA, the money is only there if you actually deposited/saved it.

 

Also, if you leave a company prior to the full year, any flex account balance is lost. If you've contributed more to the account then what you've spent, you've forfeited the money. But if you've spent more of it then you've contributed, congratulations, you got a tax free gift you don't have to repay.

 

If you know you are going to have medical expenses throughout the year, there is no reason NOT to do a flex account. I'm a diabetic with high cholesterol and suffer from depression. My quarterly meds are about $300. I know I'm going to spend $1200 on medicine throughout the year so I might as well pay for it tax free.

I should rephrase, because we also did Flex, we just made a point of low-balling it. Meanwhile, we maxed out our HSA and treat it like another retirement account. None the less, I also did specifically say that, if you have known and relatively substantial health costs, Flex makes perfect sense.

[westvirginia]

The truth is the Government is praying you drop dead as close to 65 as possible. Every single policy is dictated towards this effect. The majority of the population must die at 65 years old for the Government to remain solvent.

 

Tim's been reading about the Bilderberg group again...