Attention Elected Officials: You may have read about this first on RedState but this IS what you should do! The people will kill the Obama plan, but Obama won’t believe it. So offer this alternative NOW and push his plan OUT of the way!
Health Savings Accounts PLUS!
HSA+ bank accounts are not direct health expense payment accounts. They are insurance premium purchase accounts. Removing the restriction on private insurance companies to sell across state lines will reduce premiums and spread risk. Payments for insurance premiums are made by deduction from HSA+ accounts. Employer provided health insurance is included in HSA+ payments, NOT deducted from payrolls. Employees may opt to automatically deposit payments to their HSA+ accounts of any amount, the mimumum being their contribution to the employer sponsored plan. HSA+ accounts offer the balance of the accounts made available to contribute to the premiums of private insurace based HSA++ accounts. All funds contributed to HSA+ accounts are 100% tax deductible, minus the premiums paid for personal health insurance. That allows persons to contribute in excess of their premium and deduct that amount from federal income taxes 100%. That alone will fund the premiums for HSA++ accounts.
HSA++ accounts are savings accounts provided by banks to any person, not covered by private health insurance. HSA++ accounts work the same way as HSA+ accounts, except any amount of a premium not covered by the personal deposit of the account holder is acquired from HSA+ account tax free overages. This makes the tax free status a payment for the use of those funds to insure others. The debt for such premium payment is spread evenly over all HSA+ account holders and shown as a monthly ‘coverage contribution’. An HSA+ account can only contribute to HSA++ premiums if an amount in the account exceeds the total amount of the personal premium and the coverage fee. Only those persons without private health insurance, either personal or employer based can qualify for HSA++ accounts. There is no minumum amount required to open a HSA++ account. Banks, religious entities, non-profits and other organizations my pay a small amout to open an account in a person’s name. Health insurance from the consortium plans remains in effect only while the HSA++ account is functional. Companies can opt to participate in HSA+ accounts for their portion of provided health coverage payments. Deductions cannot be made from HSA+ or HSA++ accounts by the account holder.
This process will privately insure every single responsible American by offering incentive to participate from those who can pay the full price of premiums and offering incentive to save to those who cannot pay the full price of premiums for health insurance coverage. A consortium of private health insurance companies would be created to offer HSA++ Major Medical coverage plans to share the risk of payouts, with no risk of non-payment of premiums.
Premiums will be reduced by guaranteeing the payment of premiums in advance of distribution. The tax incentive to receive 100% deduction of HSA+ account overages (over the cost of health insurance premiums automatically deducted) will be quite enticing to corporations and individuals. Making the payment of health insurance coverage costs for others, tax deductable will guarantee the coverage and a yearly growth of coverage potential and keep health decisions between a patient and the doctor.
In order for this to work the following must be done:
Any person with a pre-existing condition that has been diagnosed or treated within one year prior to joining a health plan, can select a health plan in the free marketplace that accepts such policies or join a HSA++ plan. Insurance companies would not be permitted to refuse coverage transferring from a HSA++ plan to a HSA+ plan if the HSA+ plan was in effect for one year. HSA++ plans must accept all persons.
Tort limits need to be placed on awards not to exceed 2x the expense of the procedure. Legal awards may include the cost of the procedure, plus up to twice the cost of the procedure in penalties. No punitive damages permitted unless malice or intent was proven.
Open health insurance companies’ areas of marketing to include the entire country. Prohibit state restrictions of insurance companies to within their own state only.
Prohibit advertising of all prescription based medications. This will drastically reduce demand. People cannot purchase those products without doctor prescriptions making the demand not only on the drug being advertised, but on the doctor as well, for ailments self-diagnosed before a doctor can evaluate a need for the drug at all.
That’s it. A simple and straight forward health plan that retains private health insurance, retains personal choice, reduces the cost of premiums, covers all responsible persons, provides tax incentive to fund it and retains both the dignity of the American people and the liberty of the nation’s future.
Now – Republicans in congress: GET ON IT! This does what the socialist plans do but it does it without government involvement (other than overseeing banks and insurance companies through the existing infrastructure) and other than the socialist control issue, there is nothing liberals can argue about. It covers everyone who cares to be covered and those others care to see covered. And it can cover aliens and illegal aliens if they open an account and pay their way!