News and Blog

Wednesday, 11 September 2019
2019 Rand study - Private ins. vs. Medicare reimbursements
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This is even worse that I had believed true. Rand Corporation conducted a nationwide study of hospital claims from 2015 - 2017 to understand the disparity in pricing of private health insurance verses Medicare reimbursement rates. The results are astounding. In middle Tennessee the average reimbursement by our hospital systems are: Williamson Medical Center 160%, Vanderbilt Hospital 208%, St. Thomas Health Systems 192% and HCA Tri-Star 303%. 

What that means is, if Medicare charged $1,000 for a procedure Vanderbilt has been paid $2,008 for that same procedure from our commercial insurance carriers. That is the type of insurance most of us have individually or through our employers. We wonder why health insurance costs so much, it's because we subsidize the government policies to keep our healthcare providers afloat. 

Think about that, HCA Hospitals are charging on average 300% more than the amount the government is paying for the same services. What can be done? That's the $100 billion dollar question that needs to be answered to get healthcare costs and medical premiums under control. I don't have the answers, just want to give you some information to think about. 

Want to read the study, click here

The payment amounts above are referenced in the national map, zoom into Tennessee and  you can view the hospitals individually for their specific payment amounts. It's very interesting and very disappointing. 

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Posted on 09/11/2019 10:08 AM by David Moore
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Wednesday, 11 September 2019
2020 Health Savings Account limits
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Good news, the annual HSA contribution limits continue to increase (a little bit). For 2020 a person with employee only coverage will be able to contribute $3,350, up from $3,500 in 2019. If you cover dependents on your medical plan you can put $7,100 away on a pre-tax, tax free basis. This is a $100 increase from 2019. 

One of the challenges I have with HSA rules is why a person has to have a $2,800 deductible to be eligible to contribute. I understand if you have a "shared" deductible it's only $1,400 but those are the exception to the rule. I am a huge HSA fan and encourage everyone who is eligible to try it because there is nothing to lose. 

Many financial experts are saying an HSA even without a match is a better long-term retirement strategy than your 401-k (traditional or Roth). The reason is that you can put in tax deductible dollars on the frontend, your money grows tax-free and if taken out for qualified expenses comes out tax-free. That is a fantastic program, get on board, set up your account and fund it as heavily as possible. 

Have an excellent day, we appreciate your business. Have questions or need group insurance help in Tennessee, call me. David Moore 615-724-1701

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Posted on 09/11/2019 9:43 AM by David Moore
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