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

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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