🚀 go-pugleaf

David S.A. Stine <dsa@netcom.com> wrote:

>Some companies offer what is known as a "cafeteria plan" (I don't know from
>whence the name comes) where you can set aside X percentage of your pre-tax
>income for health services. You can then use this income to pay directly
>for your services on a fee-for-service schedule.
>...
>However, if you don't use all the money you set aside in your plan by the
>end of the year, Uncle Sam just wraps his mitt around this and says "Thank
>you." You lose it, straight out.

No, these are subject to rules dictated by the company and the money
does not go to the Uncle Sam but back to the company.  I've just gone
through trying to configure my set-up and it's not much money; I've
blown this year's allotment on a pair of Boston IV contact lenses, one
year's solutions (on sale) and a pair of glasses that match the lens
prescriptions (also on sale, tied to the lenses as a package).  So, it
wouldn't be enough help me if I get a cancer ... and anyways, I can't
use it against my deductible nor copayments.  It's called a Health
Reimbursement Account (HRA) , and despite the general paranoia of
some presentations it is a subsidy for the middle class ... like me.

We've hashed this out on our internal company rap newsgroups, and the
annual HRA is just enough to a) get a set of corrective eyewear and
related supplies, b) recondition a set of dentures, c) buy one year's
supply of birth control pills or d) pay for one abortion ... all tax
free, not counted as income.

>Let's say that instead of taxing people to provide for health care, that
>the government set up something like a 401K for health care costs. ie,
>you could set aside X% of your pre-tax income for health-care costs; the
>government could dictate a minimum you must save. The savings plan would
>be administered by your employer, just as a 401K is.

The costs that you can ring up if you get really ill can drain your
version or any other of a medical IRA, and leave the rest of us to
pick up the mess.  People keep thinking that medical care is on the
same price magnitude of purchasing a boombox or something ... it is
amazing that people don't know what really happens if you roll the
wrong number on the dice ...

gld
--
~~~~~~~~~~~~~~~~~~~~~~ Je me souviens ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Gary L. Dare				Canada, 10/25: Liberals or
> gld@columbia.EDU 			Progressive Conservatives
> gld@cunixc.BITNET			ONLY ... just do it!!!