Health Savings Accounts: The Latest Chapter in Consumer-Directed
Health Care
Though
the debate surrounding the Medicare Prescription Drug and
Modernization Act focused on the federal medical program for
seniors, the law also created a new type of tax-favored account
that may have profound implications for employer-sponsored
health care.
These
accounts, called Health Savings Accounts (HSAs), offered to
individuals who are covered by a high-deductible health plan
a tax-favored way to save and pay for medical expenses. Both
employers and individuals can contribute to a HSA; individual
contributions are deductible; and accrued amounts can be carried
over year-to-year and are nonforfeitable. These advantages,
coupled with the desire on the part of many employers to move
toward a more consumer-directed model for the health plans
they offer to employees, make HSAs an attractive arrangement
to consider.
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Non-Prescription
Medications Are Now Eligible for FSA Reimbursement
In
September 2003, the IRS announced that employees who participate
in health care flexible spending accounts (FSAs) at work could
use pretax dollars to buy nonprescription (over-the-counter)
drugs, retroactive to the beginning of the plan year. Examples
of such drugs include cold remedies, allergy medications,
aspirin, and antacids (although items "merely beneficial to
the employee's health," like dietary supplements and vitamins,
aren't included).
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Disability
Insurance: A Valuable Addition to Any Benefits Package
Many
individuals consider their home to be their largest asset.
However, for nearly all people, their most valuable asset
is their ability to work and earn an income.
According
to the Social Security Administration, studies have shown
that a 20-year-old worker has a 3-in-10 chance of becoming
disabled before reaching retirement age. Working adults are
more likely to become disabled than they are to die. Yet,
while people often obtain some form of life insurance, the
need to insure against disability frequently is overlooked.
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article
Direct-to-Consumer Advertising: Does It Impact
Drug Prescribing and Costs?
Everyone
knows the impact that effective advertising can have. A colorful
magazine ad or engaging television spot can make our mouths
water for tempting food or our hearts yearn for a getaway
vacation. Successful advertising not only conveys product
information; it makes the consumer want the advertised item.
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