NAHU vs HR 5719

In the follow the money site, today I talked about this month's proposed HR 5719 that would require insurance companies to annually report on who holds their health savings accounts (in conjunction with high deductible policies) and what withdrawals were made from the account during the year.http://conoutofconsumer.blogspot.com/2008/04/nahu-against-hr-5719-consumers-should.html

This is summed up as SUBSTANTIATION requirements (see http://www.govtrack.us/congress/billtext.xpd?bill=h110-5719)
and naturally, as legislation that would require insurance companies to actually do something for their money, insurance companies are against it. Also predictably, insurance companies warn that they would have to charge more to consumers to cover the cost of SUBSTANTIATION. Okay, insurance companies want to do less for more. But why should consumers consider HR 5719 and more importantly the aspects of high deductible plans in conjunction with Health Savings Accounts? Because they may not make sense without requirements of substantiation.

Task a day insurance: First, if you have a flexible savings account where the employer owns the plan, you know that SUBSTANTIATION is a big part of withdrawal from those accounts because at the end of the year employers get to keep the unused portion of those pre-tax dollar accounts, you cannot carry them forward. In the health savings account where the consumer owns the account, the remaining pre-tax dollar amount can be carried forward. Right now, as NAHU, the National Association of Health Underwriters, eagerly points out, consumers are responsible for keeping receipts in case the IRS wants to check on how those pre-tax dollars are spent.

But here's the rub. Having pointed out that insurance companies are always against legislation that would require them to monitor and reduce fraud because of their own actions or inactions, there is another consideration for consumers. Why make insurance companies richer off administering these accounts? There may be other alternatives. Traditional 401K dollars, pre-tax dollars put into retirement accounts often have a hardship withdrawal feature. If you have a 401 K, check out whether medical expenses, or medical expenses exceeding 7.5% of your income are a penalty free withdrawal eligible expense. IF they are, then in a worst case scenario you might have options. Be careful though, 401K's are really for retirement so there may be penalties, or limitations on the number of such withdrawals. Do the research.

If you are buying a high deductible insurance policy and a partnering health savings account, support bill HR 5719...without accountability insurance companies will continue to raise their prices anyway (I really don't think I need to list cites supporting this claim, do I?). Consumer stakeholders want insurance companies to start being responsible about their own fraudulent, sloppy, and greed-motivated contribution to the health services crisis. We cannot support insurance company bottom lines at the expense of our own and we cannot continue to surrender to insurance company "policy" out of fear that there will be no insurance. You can read the National Association of Health Underwriters commentary on the bill at http://www.nahu.org/legislative/MSAs/HSAs-HSSAs/index.cfm.