HSA 2012 Limits

Posted by larry on June 23rd, 2011

The IRS has published the new limits for Health Saving Accounts for 2012. The IRS makes annual adjustments to the minimum deductible, maximum out-of-pocket (OOP) limits, and HSA contribution maximums based on inflation. These changes affect Health Saving Accounts (HSA) and High Deductible Health Plans (HDHP).

The minimum deductible for 2012 is the same as for 2011. The 2012 minimum deductible for self-only coverage is $1,200. The 2012 minimum deductible for family coverage is $2,400.

The maximum out-of-pocket limit for 2012 for self-only coverage is $6,050. The maximum out-of-pocket limit for 2012 for family coverage is $12,100. The maximum OOP includes deductibles, copayments, prescription drugs, and other amounts. It does not include your insurance premiums.

The maximum annual contribution limit to your Health Savings Account for self-only coverage is $3,100. The maximum annual contribution limit to your Health Savings Account for family coverage is $6,250.

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Generic versus Brand Name Drugs

Posted by larry on June 13th, 2011

Approximately 64% of all prescriptions in the US are filled with generic drugs.

Generic drugs have the same active ingredients as brand name drugs. The dosage is the same. They do the same thing as the band name drug. Generic drugs have the same side effects as the brand name drug.

Some people think that since a generic does not cost as much as a brand name drug it must not be as safe. The FDA requires that the generic meet all the same safety standards as the brand name drug.

Generics are cheaper because they don’t have to cover the cost of the years of research and development needed to bring a new drug to market.

There is a myth that generics are manufactured in plants that are not as good as where the brand name drugs are made. The fact is the FDA requires plants that make generics to meet the same standards as brands. The FDA reports that about half of all generics are made in the same plant as the brand name drug.

Trademark laws do require that generic drugs have a different color than the brand. The active ingredients are the same, just a different color.

 

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Required Coverage in Texas

Posted by larry on June 13th, 2011

Why do health insurance policies in Texas cost more than in many other states?

The answer is the Texas Department of Insurance (TDI) requires that health insurance companies licensed in Texas provide “more benefits” than in any other state. These required benefits are called “state mandates“. The more benefits you receive, the more you have to pay.

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Is there a limit on prescription drug benefits?

Posted by admin on June 13th, 2011

As a result of the passage of the Affordable Care Act on March 23, 2010, health insurance companies have removed any annual maximum on prescription drug coverage. This is good news for consumers who have to spend thousands of dollars per year on prescriptions.

In the past it was possible to reach the prescription drug benefit maximum after a few months. Now consumers no longer have to worry about their prescription drug benefit running out.

As you would expect, you do not get something for nothing. While the Affordable Care Act gives you unlimited prescription drug benefits, it also necessarily caused health insurance premiums for everyone to increase to cover the addition drugs the insurance companies will be paying for. Consumers who fill only two or three prescriptions per year will subsidize those who fill four or five every month.

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What Are Preventive Services?

Posted by admin on June 13th, 2011

As a result of the passage of the Affordable Care Act, insurance policies issued after 9-23-2010 include most preventative services as covered services. These covered preventative services  must be provided at no out of pocket costs to the consumer and without a waiting period. Preventative services such as annual physicals, routine mammograms, PAP smears, and PSA tests are now covered at no out of pocket costs to the patient.

This is only a very quick look at a few things identified as preventative services. There are at least 56 procedures covered currently, and the list is growing as Congress writes the law.

It is important to note that these preventative services are provided at “no out of pocket” costs to the patient. That does not mean that there is no costs associated with all these new included benefits. No one works for free.

The costs associated with performing all the extra medical procedures mandated by the Affordable Care Act has caused health insurance premiums to increase dramatically. Now you know why your health insurance premiums are increasing 10% to 35% annually.

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