HRA & The President's Plan

I don't know if you recall, but during the President's joint session comments concerning his health plan he made the statement that he'd love to have a plan where all employees could own their own health insurance policies and have the employer help out a little.

BAM!! That's is exactly what the HRA does. I wonder why he won't respond to my messages?

Oh well, hang in there, sooner or later we'll have a written document about which there can be no misrepresentations.

HRA - The Health Insurance Solution

I know.......I know. It's been nearly a month since I posted. I haven't been vacationing. I've been researching or trying to research the "new" words that will be used to try and fool us about the health care/insurance reform.

Unfortunately I haven't been able to get confirmation on the things that I've been told are in the works. So...... until I have that confirmation I'm not going to bolster rumors.

Instead, let me tell you about a call I had with two local radio personalities. They were hoping that some day employees would be able to buy their own health insurance policies and find a way for employers to assist in that pursuit.

I called the station and told them that it already exists! It is called the HRA. (Health Reimbursement Arrangement) I then made the analogy that it is like reimbursement of on the road sales people i.e. reimbursing for gas, parking, car wash, motel, entertainment etc. Unfortunately I was unable to complete the explanation probably because of the need for a break or for a more entertaining caller! The two gentlemen said such a thing wouldn't work. That's too bad because it already is! They felt it wouldn't work for a big company. Well before Obama took over GM I'd guess that one is pretty large. (Reference: Paul Pilser in his TV interview - see prior post for the link)

I'm going to email their station when I have a chance and upload that interview along with all the other support information. Perhaps, they will then inform business in their listening area about the HRA.

HRA & Congress's August Break

Now is the time to get involved with your senator & representative relative to National Health Care. Should they have a town hall meeting get there and speak up.... not act up!

Pennsylvania

Rep. Kathy Dahlkemper

• 08/08 09:00 AM - 11:00 AM: Hike and Bike/Congress in the Community - Presque Isle State Park, 301 Peninsula Drive # 1, Erie, PA, 16505

• 08/15 11:00 AM - 01:00 AM: Hike and Bike/Congress in the Community - Buhl Farm Park, 730 Forker Boulevard, Sharon, PA, 16146

• 08/19 10:00 AM: Seniors Walk with the Congresswoman - Warren Senior Center, 800 Pennsylvania Avenue W., Warren, PA, 16365

• 08/20 06:30 PM - 08:00 PM: Hike and Bike/Congress in the Community - Armstrong Trail, Armstrong Road, Armstrong, PA, 16041

• 09/26 11:00 AM - 01:00 PM: Hike and Bike/Congress in the Community - Allegheny River Trail, 6297 Emlenton Clintonville Road, Emlenton, PA, 16373

Sen. Arlen Specter

Image by eshm via Flickr

• 08/11 09:30 AM: Town Meeting - HACC - Lebanon Campus Multipurpose Room, 735 Cumberland Street, Lebanon, PA, 17042

• 08/11 03:45 PM: Town Meeting - Bucknell University Trout Auditorium, 701 Moore Avenue, Lewisburg, PA, 17837

• 08/12 08:30 AM: Town Meeting - The Penn Stater President's Hall 4, 215 Innovation Boulevard, State College, PA, 16803

• 08/13 03:30 PM: Town Meeting - Belmont Complex, 415 Butler Road, Kittanning, PA, 16201

Arm your self with the facts you wish to debate:
•Page 15: Lose individual policy if any change is made.... must go to government/public plan
•Page 22: Mandates audits of all employers that self-insure!
• Page 29: Admission: your health care will be rationed!
• Page 30: A government committee will decide what treatments and benefits you get (and, unlike an insurer, there will be no appeals process)
• Page 42: The “Health Choices Commissioner” will decide health benefits for you. You will have no choice. None.
• Page 50: All non-US citizens, illegal or not, will be provided with free healthcare services.
• Page 58: Every person will be issued a National ID Health card.
• Page 59: The federal government will have direct, real-time access to all individual bank accounts for electronic funds transfer.
• Page 65: Taxpayers will subsidize all union retiree and community organizer health plans (SEIU, UAW and ACORN)
• Page 72: All private healthcare plans must conform to government rules to participate in a Healthcare Exchange.
• Page 84: All private healthcare plans must participate in the Healthcare Exchange (i.e., total government control of private plans)
• Page 91: Government mandates linguistic infrastructure for services; translation: illegal aliens
• Page 95: The Government will pay ACORN and Americorps to sign up individuals for Government-run Health Care plan.
• Page 102: Those eligible for Medicaid will be automatically enrolled: you have no choice in the matter.
• Page 124: No company can sue the government for price-fixing. No “judicial review” is permitted against the government monopoly. Put simply, private insurers will be crushed.

• Page 126: Employers MUST pay healthcare bills for part-time employees AND their families.
• Page 127: The AMA sold doctors out: the government will set wages.
• Page 145: An employer MUST auto-enroll employees into the government-run public plan. No alternatives.
• Page 149: Any employer with a payroll of $400K or more, who does not offer the public option, pays an 8% tax on payroll
• Page 150: Any employer with a payroll of $250K-400K or more, who does not offer the public option, pays a 2 to 6% tax on payroll
• Page 167: Any individual who doesn’t have acceptable healthcare (according to the government) will be taxed 2.5% of income.
• Page 170: Any NON-RESIDENT alien is exempt from individual taxes (Americans will pay for them).
• Page 195: Officers and employees of Government Healthcare Bureaucracy will have access to ALL American financial and personal records.
• Page 203: “The tax imposed under this section shall not be treated as tax.” Yes, it really says that.
• Page 239: Bill will reduce physician services for Medicaid. Seniors and the poor most affected.”
• Page 241: Doctors: no matter what specialty you have, you’ll all be paid the same (thanks, AMA!)
• Page 253: Government sets value of doctors’ time, their professional judgment, etc.
• Page 265: Government mandates and controls productivity for private healthcare industries.
• Page 268: Government regulates rental and purchase of power-driven wheelchairs.
• Page 272: Cancer patients: welcome to the wonderful world of rationing!
• Page 280: Hospitals will be penalized for what the government deems preventable re-admissions.
• Page 298: Doctors: if you treat a patient during an initial admission that results in a readmission, you will be penalized by the government.
• Page 317: Doctors: you are now prohibited for owning and investing in healthcare companies!
• Page 318: Prohibition on hospital expansion. Hospitals cannot expand without government approval.
• Page 321: Hospital expansion hinges on “community” input: in other words, yet another payoff for ACORN.
Page 335: Government mandates establishment of outcome-based measures: i.e., rationing.
• Page 341: Government has authority to disqualify Medicare Advantage Plans, HMOs, etc.
• Page 354: Government will restrict enrollment of SPECIAL NEEDS individuals.
• Page 379: More bureaucracy: Tele-health Advisory Committee (healthcare by phone).
• Page 425: More bureaucracy: Advance Care Planning Consult: Senior Citizens, assisted suicide, euthanasia?
• Page 425: Government will instruct and consult regarding living wills, durable powers of attorney, etc. Mandatory. Appears to lock in estate taxes ahead of time.
• Page 425: Government provides approved list of end-of-life resources, guiding you in death.
• Page 427: Government mandates program that orders end-of-life treatment; government dictates how your life ends.
• Page 429: Advance Care Planning Consult will be used to dictate treatment as patient’s health deteriorates. This can include an ORDER for end-of-life plans. An ORDER from the GOVERNMENT.
• Page 430: Government will decide what level of treatments you may have at end-of-life.
• Page 469: Community-based Home Medical Services: more payoffs for SEIU and ACORN.
• Page 472: Payments to Community-based organizations: more payoffs for SEIU and ACORN.
• Page 489: Government will cover marriage and family therapy. Government intervenes in your marriage.
• Page 494: Government will cover mental health services: defining, creating and rationing those services.

DEMAND your senator & representatives read and know the bill..... especially pages of contention.

Sorry, got to go to lunch.... if I can keep it down. I'm going to need health care because Obama Care makes me sick. Special Thanks to www.romanticpoet.wordpress.com

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HRA & National Health Care Revisited - Costs

OK. Let's continue the evaluation based on following some money:

►The bill includes a new tax starting at $280,000 of income. If that tax doesn’t generate enough revenue to cover the government’s costs by 2013, the tax automatically doubles. Don't you wish you could do that with your income?

►This tax is negative to small biz because their biz income is their personal income.
Will higher taxes force job loss, less capital investment, or perhaps shutting down the business?

► If you make less than $280,000 per year, section 401 of the bill includes a tax on individuals without acceptable health care coverage. Don't have ‘approved’ health insurance? Shut up and pay the tax!

►The bill also includes a new “fair share” tax to pay for a federal health board. These political appointees will be deciding if you need the new hip or knee or heart valve or… you fill in the blank. Oh yes, it will not be your doctor! Far fetched? Ask a Brit.

► The bill requires individuals to buy health insurance. That’s when you find out the definition of 'approved' health insurance!

►Big business must buy the government-approved insurance for their employees. At over $11,000 per year, that may be the straw that breaks the business financial backbone. If not, you know those ‘evil business owners' will figure some way to save money to pay the bill. Layoffs? Oh yeah...if they don’t buy then they will pay a new payroll tax of 8%.

►The bill establishes a government-run health plan that will undercut the private market and force people to lose their private health insurance. It would be like medicare for everybody and would not operate on the same legal and economic basis as private health insurance companies must.

►Could employers see that as their way out? Could they simply cancel the current group plan and send all employees to the government plan? Isn't that the real motivation of the national health plan?

►Oh yes, lest I forget, you need to know that it won’t apply to members of Congress, who will keep their top of the line health plan.

All right. That’s enough. I’ve just ruined my weekend… I don’t want to ruin yours!

HRA & National Health Care Bill Analysis

Problems in Health Care Bill HR3200-

Although I’ll continue my analysis of the health care bill, for this entry I am restricting my comments to:

Any provisions that would effectively eliminate our freedom to choose health insurance coverage, cost sharing (deductible, co-pays, and co-insurance). President Obama has said and is still saying that “you can keep the coverage that you have.” However, what he is not saying is for how long we can keep it.

Well….. let’s just check that out!

SEC. 102. PROTECTING THE CHOICE TO KEEP CURRENT COVERAGE.

(a) Grandfathered Health Insurance Coverage Defined- Subject …the term `grandfathered health insurance coverage' means individual health insurance coverage that is offered and in force and effect before the first day of Y1 (first year after passage of the law) if the following conditions are met:

(1) LIMITATION ON NEW ENROLLMENT-

(A) IN GENERAL- Except as provided in this paragraph, the individual health insurance issuer offering such coverage does not enroll any individual in such coverage if the first effective date of coverage is on or after the first day of Y1.

My Opinion: This means that the insurance company cannot add new clients to its list of customers. The result of this provision would be that the insurance company would have an increasing group of clients who are aging and whose medical costs increase year by year. With no new client premiums it would crash. Sounds like medicare’s future doesn’t it?

The dirty truth is that an insurance company faced with that future would liquidate while they still have assets to distribute to their stockholders thus forcing all policy holders into the national health plan. So much for keeping what you have!

Competition and choice would be further eliminated because an individual policy holder could not shop around for a better plan in terms of coverage or premium or both! Again, not a good deal.

(2) LIMITATION ON CHANGES IN TERMS OR CONDITIONS- Subject to paragraph (3) and except as required by law, the issuer does not change any of its terms or conditions, including benefits and cost-sharing, from those in effect as of the day before the first day of Y1.

My Opinion: This mean that all changes would invalidate the ‘grandfathering’. Not a good deal. For example take a single male who did not buy maternity coverage for obvious reasons then got married and wanted that coverage. Or, take a young family whose budget was stressed and took a low deductible and 100% coverage. Then later in life when they prospered and were healthy wanted to save premium dollars by selecting a higher deductible and 80% coinsurance. That change would invalidate 'grandfathering'.

(3) RESTRICTIONS ON PREMIUM INCREASES- The issuer cannot vary the percentage increase in the premium for a risk group of enrollees in specific grandfathered health insurance coverage without changing the premium for all enrollees in the same risk group at the same rate, as specified by the Commissioner.

My Opinion: This provision was written by someone who thinks all health insurance benefit plans are exactly the same. That isn’t even close to being factual. It would be nearly impossible for an insurance company to comply with this restriction because of the variation of benefits within a specified risk group. Policies do not have the same coverage benefits (some include maternity, dental, vision, and some have special care for heart attack, cancer, …etc).

Finally, what makes our current distribution system great is that a healthy family can shop each and every year for the best rate and coverage selection available to them by multiple insurance companies.

This option is fully available for individual policy holders under the HRA.

Wow, I'm now through page 16 or so! Obviously more next time.

Uninsured Statistics & the HRA

A few posts prior I mentioned that of the 47 million uninsured 18 million were between 18 and 34 years of age, aka, young healthy adults who chose not to buy health insurance. Well here are some more stats with citations:

1. 17 million lived in households earning $50,000 or more…. obviously could buy health
insurance if they chose to do so and,
2. 50% of non-elderly people who were uninsured regained their health insurance within
four months and,
3. 30% remained uninsured for more than 12 months.

References:
1. (http://www.census.gov/prod/2006pubs/p60-231.pdf )
2. (http://www.aspe.hhs.gov/health/reports/05/uninsured-cps/ib.pdf)
3. (http://www.heartland.org/policybot/results.html?artID=16014)

The second reference also found:
1. 21% are below age 18
2. 63% are under age 34
3. 21% are non-citizens

Prior to believing any stats that the proponents of national health care put forth, it makes sense to verify their usage.

Are they intended to inform or mislead?

Within the HRA nearly 52% of those uninsured could easily obtain their own health insurance. Why? Because the individual health policy is rated on age and health. A young person looking at the costs under the employer-paid benefit sees a premium cost of nearly $500 per month. That is disposable income. How would spending that money for health insurance stack up against… renting a BMW or payments on a 51 inch high def flat screen tv?

The average cost for an individual health policy under the HRA for the 18-34 demographic would be about $200. An employer is a lot more likely to participate at that level but even if not it is still less expensive precisely because it is age rated not marital status rated!

Once again the HRA is a winner!

HRA Benefits Chiropractic

A couple weeks ago I shared the HRA concept with Dr. Jason Fullmer a fellow member of NExT (Network Exchange Team) and a Chiropractor. As I shared the HRA idea with him he was very interested but cautious. It seems that many of his patients' medical insurance plans cap the benefits for chiropractic service.


When he learned that the HRA reimbursement could be used for approved medical expenses including chiropractic he quickly saw that the insurance company cap wouldn't prevent the patient from using the balance of the HRA reimbursement for chiropractic treatment modalities. Since Dr Fullmer is also deeply involved in natural treatment modalities he saw how the HRA could benefit his patients there too.


Indeed the HRA flexibility is one of its best features. This same flexibility also places the buying power in the hand of the patient. This indeed will reduce costs since the patient is now part of the medical decision-making loop.


For more information on the HRA visit our website http://www.pahealthteam.com

Tire Kicking, Brain Picking, Time Wasters

Image by alles-schlumpf via Flickr

Yesterday I read a blog by Catherine Lockey “Business Predators”. (http://www.cyclonemarketing.info/?p=169). It is an insightful presentation well reasoned and well said. It was especially poignant for me as I recalled an appointment with one of her characters. His name, Mr. Terrible McMiserable.

He was controlling. His desk sat on a platform whereas my chair did not! So he literally towered over me by at least 12 inches. Talk about a power trip. He fired questions like a prosecuting attorney going for the kill. His questions were well rehearsed and random both in topic and volume. For example he quietly asked about my service and then immediately followed with a bellowed, “Why are you wasting my time?” Since he’d invited me to visit with him I wondered whose time was being wasted.

He didn’t want to learn about me or what I could provide his business. He only wanted my materials. Why? To give to my competitor! He arrogantly said so. “If you want my business you’ll do it on my terms. I want a friend to review your materials with an unbiased eye. By the way he is your competitor.”

While I don’t mind competition, I do mind educating my competition… unless there is a substantial matriculation fee. Thanks Catherine for a needed reminder.

HRA - Another Independence Day

Image via Wikipedia

The more I 'work' at this HRA solution to health insurance, the more I like it. Not since the 80's have I received more satisfaction from my work.

Group health insurance has frustrated small business because it just keeps presenting more and more problems. Oh sure, the cost is nearly preventing profits but what is even more pressing is the feeling that "nothing can be done".

The HRA solution not only creates the profit possibility but it provides a much needed alternative to employer-sponsored-group health insurance. It is an alternative that is so flexible that the power resides with the employees relative to their own health care.

The many different coverage options, deductibles, co-pays, and costs are in the hands of the employee. Additionally, the choices of medical service providers will definitely generate competition which will lower costs and improve results.

Yep.... I like this work. I just quoted a trucking company. The HRA saves over $6000 per month in premium costs.

That makes it very worthwhile.

HAPPY INDEPENDENCE DAY!! Re-read your Declaration of Independence and your constitution. Also, read what our founding fathers said and did. Inspiration is a word... but it does not due them justice.

Health debate: A little clarity, please - Jun. 19, 2009

Health debate: A little clarity, please - Jun. 19, 2009: "But President Obama has set a tight deadline. He wants both the House and Senate to pass their health reform bills by Aug. 1."

The Rush to What?

According to our federal officials in Sep 08 we needed to save our banks and loosen credit. The bailout did neither. But we did it in a rush.

Then the stimulus bill had to be passed in such a rush that no one read it! Now, four months later only about 10% has been released. What did we rush to?

Now the newest need to rush is the rush is nationalized health care. How is it justified. Mystical stats. For example: "There are 47 Million uninsured." Well that begs the question, "How many of those could afford health insurance but choose not to buy?"

As it turn out between the ages of 18-64, over 43% or 18 Million could afford health insurance but choose to spend their money elsewhere. See complete article at http://www.medicalnewstoday.com/articles/155093.php - "New EPI Healthcare Study".

Another study shows that the rush is still on. However there is no consensus. So the rush must be to limit or eliminate a complete and vigorous debate that should take place. The debate and required time for same is needed so that the phony stats and emotional fear generating tactics are exposed for what they are....... A rush to deceive.

Health debate: A little clarity, please - Jun. 19, 2009: "But President Obama has set a tight deadline. He wants both the House and Senate to pass their health reform bills by Aug. 1."

Posted by Tom Markley at 12:08 PM

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HRA & the Sole Propietor

It seems that only the big get the breaks. Not so with the HRA. A qualifying Sole Proprietor can save a bundle with an HRA.

How? The HRA allows reimbursement for lots of health related expenses: health insurance premiums, glasses, dental work, deductibles, co-pays... and this is only a partial list (see IRS Pub 502 - Health & Medical Expenses)

In a prior blog I mentioned that my wife and I paid over $1200 per month in health insurance premiums. Under an HRA that would be a deductible expense for my business. That would save Federal, State, Local, and self employment taxes. Plus it would not be income to me personally. That's $1200 per month and only a start. It's not a raise but it does save taxes!

That is a good deal. Save money and get health insurance!

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Paul Zane Pilser

Cover via Amazon

A friend ask about the author I referenced, Paul Zane Pilser. I've read two of his books but only after reading the one titled "The New Health Insurance Solution".

For a synopsis of that work check out this you-tube link where he is interviewed and discusses his book.

http://www.youtube.com/watch?v=mh_MGyx9tgc

He'll give more than enough reasons for not seeing government health insurance as a solution.

Bankruptcy by Medical Costs

Cited as a reason for National Health Insurance, proponents stipulate the millions of Americans who go bankrupt each year due to health-care costs.

What they don't say is that nearly 70% have or had health insurance.

What's missing? The snake still deceives! COBRA just does not do the job.

The dirty little secret is that employees covered by employer-paid-health insurance remain covered only as long as they can work. (For the moment forget about auto workers) Once one is too sick to work, group health insurance stops even if one can afford COBRA. Thus subsequent medical bills accumulate at an alarming rate with no chance of stopping short of death.

A solution pointed out by Paul Zane Pilser in "The New Health Insurance Solution" is for individuals to purchase and own their health insurance policies. That provides complete portability thus eliminating the need for the snake.

What about affordability? In my area of Pennsylvania coverage for my wife and I is over $1200 per month. It includes maternity. In our 60s that isn't high on our list of coverages. However, that same rate applies to a married couple in their 20s.

The same rate for an individual health policy for a couple in their 20s is about $300 per month. The rate goes up as they age but can't be increased due to illness. It can't be canceled due to medical expenses either.

But, young people won't spend money on health insurance. Hey, they'll buy 52 inch High Def TV.
The right incentive isn't in place... "no health insurance no driver license". Too radical? Maybe.

But not compared to National Health Care!