Using HSA's to Our Benefit

Individual insurance premiums should be tax deductible both in California and Federally. This would cut the cost if the State let people write off the premium by 10%. I could never figure out why group insurance is tax deductible and individual is not. We want people to be responsible and buy health insurance so let’s make it tax deductible.

There are only two States that do not allow the Health Savings Account deposits to be expensed on the State income tax return. One is California. I think this should be changed right away. The Health Savings Account is the best way to get to where we want to go by making people more aware of the cost of health care. As people save money, the Health Savings Account will lead to more transparency in pricing. People with Health Savings Accounts will also have an incentive to stay healthy so they do not have to spend their savings. Also, I would guess as folks accumulate more money in their accounts, they can go to higher deductible plans and save money on their insurance premiums. This is exactly where the free market wants to go. The State and Federal legislators are against HSA’s because they promote individual responsibility and take control away from the government.

Contributions to Health Savings Accounts should be tax deductible to anyone who wants to help their family member or neighbor out. I would help my friends cover the deductible if they needed it, and I should be able to write it off like I was putting money into an IRA plan. I am sure this is less expensive than sending the money to the State or Federal Government, having them process it, and then having it sent back for claims. Money deposited in a Health Savings Account is the most efficient money of all. There is no commission to the distribution system or profit for the health insurer. The government never touches it and it goes directly to the provider 100%. Someone tell me a more efficient way to go.

The Health Insurance Guy