Overview of Health Care - 1149 Words

Overview of Health Care Monica Francisco Provo College Healthcare Policy Regulation (HC320) Instructor David Martini April 06, 2015 Abstract Good health insurance can be expensive, and is therefore often out of reach for lower and moderate income families, particularly if they are not offered health benefits through work. To make coverage obtainable for families that otherwise could not afford it and to encourage broad participation in health insurance, the Affordable Care Act (ACA) includes provisions to lower premiums and out-of-pocket costs for people with low and moderate incomes. The adequacy of this assistance will be key determinants of how many people ultimately gain coverage and whether or not lower-income people will be able†¦show more content†¦Other government programs include State Childrens Health Insurance Program, Tricare, Veterans Health Administration (VHA), and Indian Health Service. â€Å"Overall, about 30% of the population is covered by government insurance or government-provided care† (Trivedi). Health Saving Accounts and Flexible Spending Accounts When care is not covered by other sources, people pay out of their own funds. They often must use their savings to pay small bills and must borrow (including using credit cards) to pay large bills. Flexible Spending Accounts are offered by some employers. Through these accounts, employees can choose to have a limited amount of money deducted from their paychecks to pay for out-of-pocket health care expenses. The money deducted is not subject to federal income taxes. However, you arent taxed on the amounts you or your employer contributes to the FSA. However, you must include in your income any contributions your employer makes for your long-term care insurance. You usually forfeit money you contribute that you don’t spend by the end the plan year. So, the money is use-it-or-lose-it. However, some plans give you an additional 2 1/2 months to use the money. Base your contribution on a sound estimate of the expenses you expect to have during the year. Due to the tax savings, an FSA might be to your advantage. This could still be true even if youll have to forfeit a small amount of money. 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