Don’t Quit Your Day Job – Personal Finance, Economics and Investing

The problem with the current rabble in the health care debate is the shift from talking about the actual facts to shooting at the straw men that Democrats and Republicans find easiest to negate. When the Speaker of the House calls a number of citizens Brooks Brothers wearing swastika-brandishing paid protesters instead of keeping on point, it really makes me question the aptitude of our current legislative branch. Yes; some protesters may be going too far in carrying out their dissent at town halls. The reason isn’t that they are nazis, Congresswoman Pelosi, it’s that they have a legitimate fear: that Government is going to step in and ruin something that is working well for them.

Where did the estimate of 46 million people in America without health insurance come from? You probably have health insurance through your employer or through some other means. However, there are people in this country without insurance. What does it mean, and why is the number’s background not nearly as scary as the number itself? Read on…

The Health Savings Account, or HSA was introduced in 2003 and has revealed itself to be a solid choice in saving money on health insurance. Beyond the obvious saving advantage that comes from empowering consumers to pay for most of their everyday medical expenses, the HSA also has a hefty tax benefit. HSAs are free from federal tax when accumulating, compounding and distributing money (although some states, like California do tax it). Of course, the tax benefit is only when using the HSA for qualified medical expenses. After the beneficiary turns 65, non-qualified distributions are taxed at the normal tax rate, just like a traditional 401(k) or IRA.