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April 10, 2011
Feds Still Evasive About Using Health Savings Account For Medicaid Expansion
Federal Medicaid officials are still non-committal regarding the issueof whether or not they will allow the use of health savings accounts to continue after the program Healthy Indiana Plan or HIP expires on December 31, 2012. Due to this, the administration asked the Centers for Medicaid and Medicare Services (CMS), which is given 60 days to respond, to agree to the amended state plan under the new federal law. If the CMS approves, this would then allow the current HIP program to cover the expansions in Medicaid.
At present, the HIP program provides up to $500 in preventive care alone such as screening procedures for cancer, $1,100 to medical savings accounts, and benefits of at least $300,000 to 45,000 enrollees. Using an HSA program will indemnify uninsured adults who have low incomes. The coverage would only cost about $100 annually.
The state performed a cost analysis that shows that the enhanced HIP would cost 44% more as compared to the traditional Medicaid program. To meet with the requirements of the expanded Medicaid, HIP would have to add services such as vision, dental, and maternity benefits. According to the Medicaid expansion, it would be the federal government who will pay for all the medical costs of the new enrollees for the first three years. Getting an affordable HSA plan can be the solution for low-income individuals while the HIP program is still being debated.
Health savings accounts are special accounts where you can place pre-tax money aside to pay for future medical expenses. Anyone who has a qualifying high deductible health plan (HDHP) can have an HSA. Plans that are qualified to be combined with an HSA are available from Aetna, Blue Cross Blue Shield, Cigna, Humana, Nationwide, and many others. Not only will you be saving your money tax-free, but you will also be protecting your health as well.
Posted by Wiley Long at April 10, 2011 09:26 AM