Monday, August 3, 2009

Video Diary: Mike, Uninsured Business Owner/Father, Washington UT

"My kids haven't seen a dentist in 5 years..."

Watch Mike's story, and let Jim Matheson know what you think of his joining with The Party of No to obstruct real health care reform: 202-225-3011. (More ways to contact Jim here).

4 comments:

  1. He said he's only gone to the hospital 5-6 times in 25 years. The worst possible law for him then would be an individual mandate. He doesn't need insurance, he needs health care every once in awhile. He sure would benefit from an HSA and an inexpensive catastrophic insurance policy.

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  2. Well, that covers him, Matt. Now, what about his kids?

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  3. He said with his kids he's only been to the hospital 5-6 times in 25 years. An HSA and catastrophic policy will cover them all.

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  4. @matt -

    "i would love to have health insurance" is what he said, he can't afford it. perhaps he isn't aware of your suggested option for his health coverage.

    but then, your option isn't really an option. there's this little problem:
    "May a self-employed person contribute to an HSA on a pre-tax basis?
    No. Self-employed persons may not contribute to an HSA on a pre-tax basis and may not take the amount of their HSA contribution as a deduction for SECA purposes. However, they may contribute to an HSA with after-tax dollars and take the above-the-line deduction."

    essentially they can save some money, and claim it as a deduction after they've saved it. catastrophic policies aren't cheap either, i looked into one a few years ago (prior to my employer offering insurance). so your solution would work provided there was extra money in someone's budget to save and get a back up plan for those exceptionally huge cost medical emergency plans. even then it's really only a sound option if you've got time to build up money in the savings account. there's a large gap between what a catastrophic plan would pay, and what a working family can afford to build up in a savings account over the short term. until they've saved enough, they're still potentially looking at big medical bills. essentially you're suggesting he start his own insurance company, just for his family. and it'd work, if nothing happens until he has time to build up his own pool of assets.

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