McCain's health care?

iVillage Member
Registered: 08-02-2003
McCain's health care?
27
Mon, 10-20-2008 - 1:12pm

I have a concern about McCain's plan to tax our employer provided health benefits, and also a question for clarification.

iVillage Member
Registered: 07-24-2006
Mon, 10-20-2008 - 3:57pm
Which is exactly something Obama questioned McCain about during the last debate and McCain just shrugged and said "Well..." and never finished the question.

Photobucket

iVillage Member
Registered: 01-31-2001
Mon, 10-20-2008 - 4:13pm

"I reviewed the McCain website and it is not a credit to the increase tax on healthcare coverage. The $5,000 for a family is to pay for a health plan and of that $5000 will be taxed. To which, my health plan cost over $9500 per year. That leaves over $5000 after the tax is taken from the first $5,000 for me to pay out of pocket."

Except that's EXACTLY what it is.. someone would only be attempting to purchase health insurance if the are currently UNINSURED. If you already have insurance, the credit would cover the tax on the BENEFITS YOU ALREADY GET. If you are buying your insurance directly, you won't be taxed because it is not a benefit you are getting. Read this quote from the McCain website "Importantly, younger and healthier employees with the McCain health care tax credit will have a bigger incentive to stay with the employers. For example, a 25-year-old employee in the 25 percent tax bracket with a $2,500 tax credit could either purchase a policy in the individual market for the same amount or stay with his employer plan and receive a $5,000 policy with an additional $1,250 to invest in a portable health savings account. " He's saying you have the CHOICE to purchase your own insurance with that money, or stay with your employer supplied plan, use part of your tax credit to pay for the tax and save the rest. So, the tax on that $5,000 policy (at the 25% bracket mentioned) would be $1250 and the remaining $1250 would be in the HSA.

Photobucket
VJ-Sig
iVillage Member
Registered: 07-24-2006
Mon, 10-20-2008 - 4:29pm

If that is the case, why is the money going directly to the insurance company.

Photobucket

iVillage Member
Registered: 03-09-2007
Mon, 10-20-2008 - 4:32pm

"If that is the case, why is the money going directly to the insurance company.

Jess


Photobucket
iVillage Member
Registered: 04-09-2007
Mon, 10-20-2008 - 4:36pm
If it goes into an HSA, then we won't get it back, right?
iVillage Member
Registered: 02-06-2003
Mon, 10-20-2008 - 5:03pm

Okay, my sister has the health savings account and it doesn't work that great for her.

iVillage Member
Registered: 03-09-2007
Mon, 10-20-2008 - 6:03pm
The HSA we currently are using is a use it or loose it situation.
Jess


Photobucket
iVillage Member
Registered: 03-09-2007
Mon, 10-20-2008 - 6:05pm

"These government HSAs are different though in that if there is any left at the end of the year, it just stays in the account and rolls over to the next year.

Jess


Photobucket
iVillage Member
Registered: 05-23-2005
Mon, 10-20-2008 - 7:04pm
I think some are confusing HSA as health spending accounts, use it or lose it as opposed to HSA -health savings accounts, which are used in conjunction with high deductible medical plans and are managed similiar to an IRA. You never lose the unused funds in those, and there are limits as to what you can deposit. My family uses a health savings account, and we are even given the option as to where we want to invest our funds, similiar to retirment accounts.
iVillage Member
Registered: 03-09-2007
Mon, 10-20-2008 - 7:29pm
Thank you for the clarification.
Jess


Photobucket