Rising Health Care costs Leaves Millions Uncovered

Note:  HBUS Inc offers a REAL solution to the problem being discussed in this post. 
Contact HBUS Inc today to learn more.


The rising cost of health insurance is leaving more Americans without coverage and driving businesses overseas.

A national organization for health care organizations, Families USA, has analyzed the issue and found disturbing trends.  Since 2000, there has been a “huge erosion” in the portion of the U.S. population that has employer-sponsored health insurance.

“Between 2000 and 2009, the portion of the population with job-based health insurance has diminished from 64.2 percent to 55.8 percent, a significant drop of 8.4 percentage points,” it said.

At the same time, the U.S. population has increased to 304 million from 278 million. However, the number of people, including family members, with employer-sponsored health insurance has dropped from 179.4 million to 169.7 million.

The reason for the decline is the high cost of health coverage for businesses.

An annual family premium for job-based health coverage has doubled since 2000 to $13,375 from $6,438.

To offset the cost, there’s also been a painful side effect: Employers are subcontracting work so they don’t have to provide health benefits or they are outsourcing jobs to countries where the government provides national health care.

Families USA also found that the number of uninsured Americans in 2009 grew from 38.4 million to 50.7 million and one in six Americans can’t afford to buy health insurance.

Whatever happened to the promise made by President Franklin Roosevelt about America’s Four Freedoms, especially freedom from want and fear? How can one live in peace knowing a loved one may not receive health care when it could be a matter of life and death?

This is shameful.

Editorial courtesy of the Macomb Daily, a Journal Register Company newspaper.

Employers "Dumping" Group Insurance OK IF They Plan to Offer Benefits Another Way

The passing of Health Reform in the United States in 2010 marks the beginning of the end for defined benefit group health plans for small businesses. 

Let's look back for a moment - by the mid 1980s the majority of small business pension plans in the United States were 401k, or defined contribution plans.  They were attractive because they gave more flexibility to employees and were less costly to employers.

Just as retirement fund managers switched from group to personal (401k and IRA) plans, employers should now prepare employees for personal policy funding through Defined Contribution Employee Health Plans .  

The following facts should make group health plans for small businesses obsolete in the very near future:

    Employers can now contribute to their employees individual health insurance costs.
    Employer defined contributions are 100% deductible to the company as a business expense.
    Employer contributions are 100% tax-free to employees.
    Individual health insurance plans now cost considerably less than group plans.
    Employers can contribute different amounts to different employees.
    Employers, not insurance companies, define eligibility in a defined contribution plan.
    Employers who implement a defined contribution plan are freed from annual rate increases.

Small businesses need to provide good benefits to attract and retain employees but for years have been wrestling with ever increasing health insurance costs and decreasing benefit levels. 

"Dumping" the old group health insurance concept and implementing defined contribution health benefit plans instead not only reduces and controls business costs but also provides better benefits. 

A revolution, indeed!  HBUS Inc has been paving the way for the past 5 years in this area.  We have done the research and can offer businesses a permanent benefits solution that won't break the bank. In fact, it will SAVE the business thousands.  We are seeing it everyday.  Call HBUS Inc today to learn more.

What are People Paying for Health Insurance?

The average monthly individual health insurance premium in the United States in 2010 was $215 per person.

The average group health insurance monthly premium for a single employee in 2010 was over $420, while the average group health insurance monthly premium for a family approached $1,200 (See Kaiser 2010 Employer Health Benefits Survey).

According to a recent report published by Kaiser Family Foundation, the states with the lowest average individual health insurance premiums were Alabama ($136), California ($157), Arkansas ($163), Idaho ($167), and Delaware ($169).

What about family coverage and the average family premiums being paid?  

For NC, the average family coverage premiums come in around $3,400, about $400 less than the national average.

 

 

Where does your state fall?

Click here to see the average monthly premiums by state and a whole lot more information about health care costs.

What Happens to My HSA When I Die?

 

Today's post covers issues related to beneficiaries for your HSA. What happens to my HSA when I die? You can name beneficiaries on your HSA and your beneficiaries will receive any funds in your HSA if you die. HSAs are payable on death accounts which means that we can pay the beneficiary without waiting for the estate to complete probate. What if my beneficiaries die before me? You can also name contingent beneficiaries that will get the money in the situation where your primary beneficiaries pre-decease you. Do I have to name a beneficiary? No. You do not have to name a beneficiary and if you die before naming a beneficiary, your HSA will go to your estate. Can I change my designation of beneficiary or add a beneficiary? Yes. You can change your designation at any time by completing a change of beneficiary form. You can also use this form to add beneficiaries if you did not do so when you opened your HSA. Can my beneficiaries continue to use the HSA as an HSA? The answer depends upon whether or not you name a spouse as your beneficiary. Spouse Beneficiaries. A spouse beneficiary can treat the HSA as his or her own. Basically, your HSA becomes your spouse's HSA after you die and your spouse can continue to use the HSA as an HSA. Your spouse will not owe taxes or penalties on the HSA provided your spouse uses the HSA for eligible medical expenses. Non-Spouse Beneficiaries. Non-spouse beneficiaries are not entitled to use the HSA and must take a full distribution in the year of death. Non-spouse beneficiaries will have to pay income taxes on the HSA amount they receive, but they will not have to pay the 20% penalty for non-eligible distributions from an HSA.  Is it better to name a spouse than a non-spouse for an HSA? Spouses get more favorable tax treatment than non-spouses as beneficiaries for HSAs, so from that perspective it makes more sense to name a spouse. Whomever you name; however, will get your HSA assets after you pass away. A non-spouse beneficiary will just have to pay taxes on the amount and will not be able to use it tax-free for eligible medical expenses as a spouse could. Can my beneficiary use my HSA to pay for my medical expenses incurred before death?  Yes, a beneficiary can use money in the HSA to pay for the deceased HSA owner's medical bills incurred prior to death provided the beneficiary does so within one year of the date of the HSA owner's death. The beneficiary would not have to include the amount used to pay for the deceased HSA owner's medical expenses in income.  Can I name my trust as my beneficiary? Yes; however, there are tax implications of naming a trust as a beneficiary so please seek tax advice before doing so. If your spouse is your ultimate beneficiary of the trust, your spouse may lose the ability to continue to use the HSA as an HSA because you named a trust as the beneficiary rather than your spouse directly (only spouse beneficiaries are allowed to treat the HSA as their own). In some circumstances for Individual Retirement Accounts; however, the IRS has allowed the ability to "look through" the trust at the ultimate beneficiary. This same ability may be available for HSA spouse beneficiaries.