It”™s interesting to note that as the Greater Danbury Chamber of Commerce and Union Savings Bank have embarked on a unique relationship marketing health savings accounts sold by ConnectiCare Inc., a new study finds most workers don”™t plan for their future health-care costs, nor do most understand basic health-plan language, including HSAs.
Fidelity Investments last week released the results of a study that surveyed 1,005 insured workers earning at least $20,000 in household income and who said they were “at least ”˜somewhat”™ familiar with their household”™s primary health insurance plan and being involved in health care decision-making.”
HSAs let workers put money aside from their paychecks ”“ on a tax-free basis ”“ for future medical expenses.
Some 61 percent of those surveyed considered their general understanding of health-care benefits terminology to be very good. However, thinking and knowing are often two different things. Indeed, the study found that only 15 percent actually had “a very strong understanding of key terms.”
More than half could not correctly identify an HSA. But 87 percent did know what a copayment was.
In light of these disheartening statistics is the even more disheartening fact that just 1 percent indicated access to health education, health promotion and prevention were important in choosing a plan. It”™s no surprise that cost of premiums was the leading factor, at 39 percent, in choosing a plan. But how can you choose if you don”™t understand the basics?
Continuing down this depressingly driven road, it should come as no surprise that the study found nearly 70 percent have not tried to determine what their health-care costs could be in retirement. The live-fast, die-young mantra doesn”™t apply to all. And, of course, when asked what a retired couple would need today for out-of-pocket cost the median answer was $100,000, $115,000 shy of Fidelity”™s projections.
And sounding like a New Year”™s resolution, 51 percent predict they will offset any health-care costs in retirement by ”¦ (wait for it) ”¦ taking better care of themselves.
Yeah, no that ain”™t gonna happen.
HSAs were created by the Medicare bill signed by President Bush on Dec. 8, 2003. Last December, Bush bolstered the HSA plan by signing the Health Opportunity Patient Empowerment Act. At the time of the signing, Eric Solomon, U.S. Treasury assistant secretary for tax policy, said, “This bill makes HSAs more flexible and makes it easier for participants to put money aside for their personal health care.”
Among other things, the changes increased the maximum amount that could be contributed into the plan, allowed rollovers from flexible spending arrangements (FSAs) or health reimbursement arrangements (HRAs) and allowed one-time transfers from IRAs.
And in Connecticut, the state allows sole proprietors with no employees to buy HSAs at premium rates reserved for groups.
One of the good things about the accounts is that they can grow tax-free through investment earnings and are not taxed if used to pay qualified medical expenses.
Now if only we can grow interest in health care in the minds of people who will need it”¦
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Land(fill), ho!
Charles J. Urstadt”™s plan to extend lower Manhattan by filling about 50 acres of Hudson River with fill, got us thinking … about transportation and commerce.
Urstadt, of Urstadt Biddle Properties in Greenwich, which owns seven shopping centers in Fairfield County and another 17 more in New York and New England, just wants to do what he did when he assisted Gov. Nelson Rockefeller in creating the original Battery Park City, which sits on 100 acres of what was once river.
He expects opposition from environmentalists. “What”™s their rational reason to oppose this? To my knowledge, we didn”™t kill one fish in creating Battery Park City,” he told The New York Times.
He”™s onto something. Think about it, more space, more development, more taxes to be collected by the city.
Water covers a little more than 70 percent of the Earth”™s surface. What”™s wrong with replacing 50 acres of it with land? Off the coast of Dubai, The Palm Islands are being created for the development of high-end homes, hotels and complementary retail and amusements. One island will have a 48-story condo-hotel developed by ”“ who else ”“ Donald Trump. The islands added about 1,384 acres to the country and about 49 miles to its 45-mile coastline.
How about building a land bridge between Connecticut and Long Island? Let”™s not be so dismissive on this plan, even if uberbuilder Robert Moses could never make it happen. Two ferries already ply the sound between Bridgeport and Port Jefferson and Groton and Orient Point. A land bridge would 1) offer drivers an option of boat or car. 2) afford motorists an option to avoid the congestion of I-95, especially from Greenwich to Stratford. 3) attract more Long Islanders to visit Connecticut casinos instead of Atlantic City. 4) afford developers some pretty seascape for low-rise condos.
Taxes would be split between Connecticut and New York since the imaginary boundary splits the sound in half.
Perhaps if Mr. Urstadt fails in his Battery Park bid, he might consider extending Connecticut into the sound.
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