Quote:
Originally Posted by PiKA2001
Dee, I see this as more of a problem of government intervention in benefit decisions than anything else. Politicians with agendas choosing our benefits= no good. Unfortunately I think this is just an appetizer of things to come.
Would a health reimbursement account allow you to choose what benefits you receive?
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I don't have a problem with the government identifying a minimum level of benefits for a basic plan. States do it with auto insurance and that's pretty accepted.
Depending on whether you're talking about the FSA (Flex Spending Account) or HSA (Health Savings Account), it offers some flexibility.
FSAs let you use tax free dollars that you have chosen to have withheld from your paycheck to pay for your health care- co-pays, deductibles, uncovered things. What you don't spend, you lose. On the other hand, if you are putting $3000 into an FSA during the year, you have access to that whole amount on January 1st.
HSAs can be paired with high deductible plans, earn interest, and initial contributions are not taxed. This is the ideal for a young person with minimal health expenses because the money rolls over from year to year also. You can withdraw money from them for other purposes, but are taxed at that point, with a penalty, like withdrawing from an IRA early. Unlike the FSA, if something major happens before you've built up money in your account, you're paying out of pocket instead.
So, either allows you to use pre-tax dollars to pay for whatever you want (if it is an approved expense.. cosmetic stuff isn't covered, prescription birth control is).