Attention all Daily Diversion readers! This is the last post to our blogspot url!
From now on, you can read DD posts at http://ebn.benefitnews.com/blog/daily_diversion/. If you RSS us, you'll have to resubscribe at the new address. I'm no techie, but if you run into trouble feel free to e-mail me. Otherwise, I'm looking forward to reconnecting at the same Bat-time, new Bat-channel.
Thanks for reading! --K.B.
Monday, June 1, 2009
Tip of the Day: Beware of Sen. Kennedy
A recent report in The Washington Post reveals that Sen. Edward Kennedy's health care reform proposal involves mandates both for employees and employers, similar to the health care system in Kennedy's home state of Massachusetts.
It's no secret that employers are solidly against a mandate for businesses to chip in for the cost of health insurance, so I encourage you to make your voice heard on Sen. Kennedy's plan. According to the Post, he plans to unveil it today and my sources tell me that a bill of of some kind could come as early as this month.
It's no secret that employers are solidly against a mandate for businesses to chip in for the cost of health insurance, so I encourage you to make your voice heard on Sen. Kennedy's plan. According to the Post, he plans to unveil it today and my sources tell me that a bill of of some kind could come as early as this month.
Overheard @: Trimming FSAs could pay for health care reform
In a recent article written for the Center on Budget and Policy Priorities, authors Chuck Marr and Kris Cox suggest that "Congress should consider scaling back or eliminating health care flexible spending accounts as part of its effort to pay for health care reform."
Among their reasons for deep-sixing FSAs, Marr and Cox say:
* FSAs encourage excess utilization of health care.
* FSAs’ “use or lose it” requirement promotes wasteful spending.
* FSAs complicate peoples’ lives while providing only modest benefits for non-wealthy accountholders.
* Health care reform’s changes to the treatment of out-of-pocket costs are likely to weaken the rationale for FSAs.
I found their arguments to be interesting and very rational, particularly the part about the "use it or lose" requirement promoting wasteful spending. I can't tell you how many colleagues and friends buy several pairs of eyeglasses and bottles upon bottles of aspirin in December each year so they can use up their FSA dollars.
What do you think? With HSAs growing in popularity, are medical FSAs even needed anymore?
Among their reasons for deep-sixing FSAs, Marr and Cox say:
* FSAs encourage excess utilization of health care.
* FSAs’ “use or lose it” requirement promotes wasteful spending.
* FSAs complicate peoples’ lives while providing only modest benefits for non-wealthy accountholders.
* Health care reform’s changes to the treatment of out-of-pocket costs are likely to weaken the rationale for FSAs.
I found their arguments to be interesting and very rational, particularly the part about the "use it or lose" requirement promoting wasteful spending. I can't tell you how many colleagues and friends buy several pairs of eyeglasses and bottles upon bottles of aspirin in December each year so they can use up their FSA dollars.
What do you think? With HSAs growing in popularity, are medical FSAs even needed anymore?
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