Roth Health Savings Accounts: What the World Needs Now
April 26, 2016
News Article
Health alert: Here are four pieces of bad news: Even though (1) the Obamacare out-of-pocket limits are outrageously high, (2) 80% of exchange plans are incompatible with a Health Savings Account, (3) new regulations will virtually outlaw HSAs for the remaining 20%, and (4) the Obama administration has no clue about how to merge health savings with insurance, even if the desire were there.
Beginning next year, the annual out-of-pocket limits for all health plans sold in the (Obamacare) health insurance exchanges will be $7,150 for an individual and $14,300 for a family. To put those numbers in perspective, a $10-an-hour employee only earns about $20,000 a year.
One way to help families meet the burden of these medical expenses is with a Health Savings Account. But because the requirements for HSAs are so rigid, roughly four out of five plans sold in the exchanges are incompatible with them. One of the most nettlesome rules is the requirement that HSA plans cover only “preventive care” below the deductible. To compete for customers, especially young healthy enrollees, the insurers believe they need to make more services available with a minimum of out-of-pocket costs.
