How true. But I can't help suggesting they Google the origins of Obamacare. Maybe they'll learn something.

 

At Alaska this year, they are encouraging everyone to sign up for the HSA plan which requires a high deductible. If I stick to my old PPO plan the premium will be $189 twice a month. If I opt for the HSA plan the cost drops to $109 twice a month. The deductible increases to $4000 per family per year. But the company give us $3000 to fund the account. With the monthly savings and the company contribution, the $4000 deductible is covered.

It seems too generous to be true. I'm still looking for the downside.

 

I used to be at ASA when they introduced the HSA. 2008 or 2009 I think. Anyway, same thing the HSA was lower premium wise, higher deductible and such but with the money the company kicked in it was actually a much better option than the traditional option.

So, maybe it's true haha

 

HSAs are pretty sweet tax shelters too. I'd go for it.

 

No they are not. No one is getting taxed on their "Cadillac" plan this year or next, or even the one after that. The rate increase has nothing to do with that.

 

My regional was self insured through the same. It was wonderful. Low cost compared to others, and much, much better coverage. Most offices I visited had never seen coverage like we had.

One thing Virgin has going for it is, having a large amount of SFO employees, they tend to be fairly healthy over, say, the Midwest and Southern folks (diet wise).

 

While those costs do add up, the very high costs are coming from long term illnesses where doctors pretty much have a duty to "throw everything at you".

From the beginning, when lots of unneeded tests are done to cover their negligent lawsuit check box, to the end where you spend hundreds of thousands of dollars to extend life by several months (at best) in a painful state of existence. Steve Jobs succumbed and how much do you think he spent on his medical care? My guess is in the tens of millions, at that point you have nothing to lose, and you can't take it with you.

Technology has reduced the costs of almost every sector except the healthcare system in the US.

We need more of a "take charge" type mentality to healthcare where people shop around to truly reduce costs, it's just impossible to do, really. It's not like you can call around for a kidney transplant like you do a set of tires.

The overall increases over the past 16 years have been mostly linear (not exponential) and the ACA "Obama Care" act has done little to increase premiums on a % basis. BUT, everyone is quick to blame those of the other party who have actually done something that has helped Americans.

 

Same at spirit. The high deductible plan is a $4500 deductible but the company kicks in $3000 toward it into a HRA. HRA is similar to an HSA but it's not investable. It does roll over so if you don't use it and you get another $3000 added you could have your entire deductible covered and then some left over for other expenses when the plan pays a 90/10 split after the deductible is met. It's still a PPO and the savings over the expensive plan are $3600 a year in premiums. All these numbers a based on being on the family level. It is however bad for prescriptions so if we needed something regularly I might not recommend it. Otherwise no brainer IMO

 

Not really any downside to it. With your savings from your premium difference, you can put another $1920 into your HSA for a total of $4920. I don't even know how you could lose with them giving you $3000. Plus every year you don't use it all, you can save it for the future.

I think these HSA plans also do a good job promoting people to take an even more active role in staying healthy, since they can bank the savings for the future and the funds are eligible for medicare premiums.

With the contributions being tax free and the interest gains from investing it also tax free, you have the benefits of a traditional and ROTH retirement accounts combined.

The only main difference with the HRA is that the money isn't usually yours to keep when you separate from your company. If you have a choice between the two, you almost always want to go with an HSA over and HRA. Depending on how your prescription out-of-pocket max works, you may have a separate amount to hit, while the HSA applies towards your deductible/out-of-pocket max.

 

The solution to high healthcare costs should start with price transparency by medical providers. It is anticompetitive to require small insurance companies to pay a higher price for the same medical procedure. It serves as a barrier to entry and reduces competition. Large insurance companies, small insurance companies, uninsured patients, and insured patients should all be able to pay the same amount for a medical procedure. The healthcare providers should be required to post the costs of each of their medical procedures so that consumers can search based on cost and on quality. Capitalism doesn't work for the consumer without price and product transparency. Airlines are legally required to post their prices with all taxes included and in specific sized font.