“…In the wealthiest nation on Earth, 46 million of our fellow citizens have no coverage. They are just vulnerable. If something happens, they go bankrupt, or they don’t get the care they need.” -President Barack Obama, 2009
We are a capitalist society. If you want something you have to earn it.
Have we earned universal healthcare?
If you are one of the 46 million Americans that do not currently have healthcare insurance then I am sure you are saying yes to that question.
But why do you say we’ve earned it? Because we are a wealthiest nation? We are in debt $17 trillion dollars. I assure you we are not that wealthy.
Because other countries like Canada and Italy provide universal healthcare coverage? True, other countries do provide basic healthcare but they also put a limit on the amount of expensive procedures like transports and exploratory surgeries. They also only pay for procedures that are medically necessary. No experimental treatments, drugs, care in these countries. Not to mention the wait times.
Do you think we’ve earned universal healthcare coverage because it’s too expensive to pay for it on our own?
This is usually the answer that people tell me why Americans deserve universal healthcare coverage.
How would you like to make $30,000 in 2 days?
I’m going to show you a secret that international drug dealers have been using for decades. But now you can cash-in on the same system for the very first time … and without risking a long spell behind bars!
Click below for the shocking details:
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It’s true that healthcare costs are rising every year. But health expenses don’t have to break the bank. It can be very affordable no matter if you are young or old. Below are 2 ways to cut your health insurance costs and still get great coverage.
When I tell you the government already has programs in place to help you pay for all your healthcare costs would you believe me? Probably not because if they already had these programs in place what’s all this talk about universal healthcare coverage about?
In 2003 America’s most despised president threw the American people a bone when he signed into law a bill that expanded health care coverage to millions. The bill allowed employees of small and large companies to pay for prescription medications, nutritional supplements, allergy medicine, cold medicine healthcare premiums, pain relievers and more with pre-tax dollars.
The only catch was you had to be an employee of a company that had at least 5 people and you had to set-up a Health Flexible Spending Account (FSA), which was usually completely free to do.
FSA’s are a god send. Employers and employees of all companies love them. Having an FSA means your employer deducts any amount you want from your paycheck before taxes and puts the money in a special account.
This plan has multiple financial benefits….lowers your taxable income, allows you to pay for things that aren’t covered by your insurance, and allows you to set aside money without a second thought.
Having an FSA lowers your taxable income because you are taking your money and putting it aside before Uncle Sam gets his cut. You can put whatever amount you want in your FSA account.
For example if you make $75,000 and have an FSA account which you contribute $3,000 a year to, then you only get taxed on if you made $72,000. The difference in the amount of taxes you’d pay is over $800.
For example if you make $75,000 and don’t have an FSA your taxes would be around $14999 (for a single person). Bringing your gross income down to $60,001. If you spent $3,000 a year in medical expenses your net income would be about $57,000. But, if you made $75,000 and contributed $3,000 a year into an FSA you would be taxed as if you made $72,000. The taxes for someone who made $72,000 a year are about $14,194 (for a single person). That would bring your net income to $57,806. With an FSA you’ve just given yourself an $806 a year raise!
The downside to an FSA? You have to use all the money you’ve set aside before the end of the year. If you don’t you lose the money.
The way around this is to buy things like cold medicine, band-aids, pain relievers, antacids, allergy medication and more items found at your local pharmacy at the end of the year with whatever money you have left in your FSA to use all next year. You can find a listing of all the items the IRS has approved for purchase with an FSA here .
Scared of the “use it or lose it” caveat to an FSA? I’ve got another option for you. The added bonus to this second health care plan is that it’s also a wealth building opportunity!
Health Savings Account (HSA)…Ut oh another phrase shortened to 3 capital letters. Do not fear these 3 little words. Hold them close to your heart just like you do with those other 3 little words.
HSA’s appeal to more people because you don’t have to be employed by someone else to have one (like you do with an FSA).
But an HSA is similar to an FSA in the fact that you take your pre-tax dollars and set them aside in a special account to be used for medical expenses. You also get to deduct the money you put in your HSA from your gross income. Just like in the example I showed you about an FSA, using pre-tax dollars in your HSA actually increases your net income!
And just like FSA’s you can use the money in your HSA at any time to pay for medical expenses and supplies like cold medicine, allergy medication, band-aids, pain relievers, antacids, the list goes on and on!
That is where the similarities end. The rest is all upside for an HSA. Because unlike FSA’s you don’t “use it or lose it”. You can roll over any amount you don’t use in one year to the next year. In fact you can keep rolling over the money and accumulate quite a bit of un-taxed money in your HSA. There’s no limit to the amount of money you can have in your HSA.
And it gets even better! Once you reach age 65 whatever money you have in your HSA you can pull out penalty-free for whatever you choose! It can help fund your retirement, pay your bills, allow you to travel, the possibilities are only limited to your imagination!
And don’t think that death can stop you! If you die your spouse can inherit the money in your HSA TAX FREE!
HSA’s take the greatest benefits of an FSA and combines them with the benefits of an IRA. Are all these 3 letter acronyms confusing you yet?
Just like in an IRA the government limits the amount of money you can put into your HSA each year. $3,050 a year is the limit for a single person and $6,150 for a family. Adding to the IRA similarities the IRS allows you to increase your HSA contribution up to $1,000 a year after age 55.
The similarities don’t end there! Just like in an IRA you control the way the money in your HSA is invested. You do have to wait till age 65 (same age you have to be with an IRA) to withdraw the money for non-medical expenses penalty free.
I want to illustrate how much money you can accumulate with an HSA. If you start contributing $3,000 a year at age 30 to an HSA and continue to do so until age 55, when you up your contribution by $1,000 to $4,000 a year until age 65, if you earn a conservative 6% in interest each year then you will have accumulated over $370,000!
Wow, just think how fun your retirement can be with an extra $370,000 laying around!
There are other rules and regulations for HSA’s but none that are supremely limiting. HSA’s are like a tax loophole! I’m really surprised more people don’t know about these. Check out all the requirements and regulations for an HSA here .
If you think you have good health insurance because you only have to cover 20% of your medical costs think again! You only think that because your employer deducts the money for your health care premium directly from your paycheck, giving you the false sense that you aren’t spending any money.
These kinds of traps trick people into thinking they are spending less money and have better health insurance than someone who pays for every doctor visit, every lab test, etc.
But trust me if you want to save money cut out the middle man (the insurance companies) and pay your expenses directly! You can always by a lower cost high deductible plan to cover catastrophic conditions.
For example if you get a leaky faucet you call a plumber and pay him directly. You don’t go running to your insurance company for your house and ask them to pay for it. No! You pay for the little things and leave the big, catastrophic expenses to your insurance company. The same goes for your health. Leave the catastrophic expenses to your health care insurer and pay the littler expenses as you go with either an FSA or and HSA.
Keeping Money in Your Pocket,