Comments on: It’s open enrollment!

By: Carnival of Financial Resources | On a Quest To Be Debt Free...

Carnival of Financial Resources | On a Quest To Be Debt Free... — Wed, 19 Nov 2008 00:14:00 +0000

[...] presents It’s open enrollment! posted at LivingAlmostLarge, saying, “Reminding people about open [...]

By: LivingAlmostLarge

LivingAlmostLarge — Fri, 07 Nov 2008 00:58:26 +0000

Wow, thanks stacey, and Kristy let us know what happens when you investigate it.

By: Stacey

Stacey — Mon, 03 Nov 2008 20:10:02 +0000

Kristy,

The self-employed already receive a tax credit – without itemizing. It’s on the long form 1040.

By: Kristy

Kristy — Mon, 03 Nov 2008 19:25:48 +0000

What about the people that work for small businesses and self employed people? You don’t think they would benefit from a tax credit for health insurance? I know that I am not the only one that would benefit.

By: LivingAlmostLarge

LivingAlmostLarge — Mon, 03 Nov 2008 19:17:56 +0000

The way to make it work like what McCain is suggesting is to go completely free market. Without insurance, that will make people very cost conscious, health aware, AND force doctors and hospitals to price accordingly. People will not pay for anything extra. And they will refuse to pay full price.

Basically it will be pay for what you can afford for everyone. That theoretically, never been done, drive all prices down low enough because of competition for people to afford care.

It’s been proposed but no one has actually tried it.

By: LivingAlmostLarge

LivingAlmostLarge — Mon, 03 Nov 2008 19:15:28 +0000

I don’t think so Kristy. It would only benefit those who are younger and healthier. Anyone older or with many children would not find it cheaper. Also anyone with preexisiting conditions would find it impossible to get insurance. Under McCain’s plan an extra 30 million people would be uninsurable, which is why the NEJM and AMA have called it unfeasible as a plan.

Because you don’t account for people unable to get HDHPs. What do you do with them? Government plan? Then you end up spending more trying to insure them as employed provided coverage vanishes.

Don’t get me wrong, I know we have great insurance. But that’s because that’s what we chose for our career. We make less money than other fields because of the benefits. Much like state, government, non-profit employees. Sometimes the pay is lessened because of the bennies.

But the feasibility of pushing so many people into not being able get insurance, I bet your premiums would go up. You’d have to deal with people who can’t get or can’t afford insurance not provided by employers, much like how the uninsured now cause a rise in costs.

Also Beth, it’s $20k benefit because the employer pays $10,840 for each person on the plan. I am looking at the booklet. So we’re be right at the $5k tax credit, if we could buy the plan as individuals for only $20k.

By: Kristy

Kristy — Mon, 03 Nov 2008 17:56:13 +0000

LAL, I don’t have insurance like yours which is why the $5,000 tax credit would be beneficial to me. I pay $380 per month for a high deductible HSA and this is with my employer contributing $250 a month. There are a lot of people who would benefit by the $5,000 tax credit.

When I give birth next year I will pay $2,400 out of pocket deductible. Then all routine stuff is fully covered.

By: LivingAlmostLarge

LivingAlmostLarge — Mon, 03 Nov 2008 16:00:59 +0000

Beth, I guarantee you that if we had a tax credit the employer would not be providing medical. It’s too expensive. They would just drop the medical insurance and give us a raise.

But who cares about the raise? We couldn’t buy the insurance we have. It’s AWESOME insurance. Did you see what it covers? Unlimited, infertility, etc. Not many plans get that deal.

They have it because it’s a larger company and they pay a lot for it. I also did not include our vision and dental benefits which are ridiculous!

We get free contacts AND glasses every year! Not either or! I got glasses and contacts this year again. We get $2k in dental benefits with rollover! Crazy, insane benefits. And we pay $200/year for both of us to get vision and dental.

Try and cover everything we get and no way does it work. The $5k credit would barely cover an HDHP, which is what we would get when the company drops the plan.

Our insurance is superior to most people’s coverages.

By: Beth

Beth — Mon, 03 Nov 2008 04:40:48 +0000

Actually, that $5000 tax credit is to cover the taxes you would pay on the $9000 health insurance benefit you get from your husband’s employer. If you’re in the 25% tax bracket, you would pay $2250 in taxes which is LESS than the tax credit. The balance of the tax credit would go into a health savings account, for your future use!

By: Meredith

Meredith — Mon, 03 Nov 2008 01:40:18 +0000

Be thankful for the insurance you have! Our drug plan for our insurance just went up to $15 for generics, $35 for some brand name, and $50 for other brand names. Problem is, most of the medications we are on are the $50 ones and we can’t switch to generics for various reasons. So again, you’re lucky!