Video: Does Health Consumerism Work?
Consumer-driven healthcare plans (CDHPs) were envisioned in the late 1990s and launched around 2000. These plans were designed to pair greater financial exposure through high deductibles with web-based consumer tools. The consumer plans made the promise to lower cost and improve healthcare quality through empowered consumers. The landmark legislation for the healthcare consumer movement was the creation of the health savings account (HSA) in 2003. HSAs allow the employer and plan participant to put pretax money into an account to cover eligible healthcare expenses. The deposits can be invested to create a return that is also pretax. The HSA is the tax code triple play. Deposits are tax-free. Investment returns are tax-free. Reimbursements for eligible medical expenses are tax-free. The HSA is the only item in the Internal Revenue Code that allows for tax-free deposits, interest, and distributions.
So, why doesn’t everyone have one of these tax-magic accounts? I take a look in my newest video. Check it out!
Don’t forget to tune in next week, where I’ll take a deeper dive into this very issue. And, if you haven’t already, I encourage you to sign up for the “Insiders’ Club” where you’ll be notified when I release new information AND receive a FREE copy of my book “The Voter’s Guide to Healthcare: A non-partisan, candid, and relevant look at politics and healthcare in America” when it’s available.
Published on: 12.10.19