Using An HSA To Fund LTC

MAY 1, 2018 • By BEN MATTLIN for Financial Advisor

Health savings accounts are among the best savings vehicles out there. Money that goes in can be deducted from federal income taxes, grows tax-free and can be withdrawn tax-free at any time if used for qualified medical expenses.

But for many retirees, one of the biggest expenses is long-term care—the ongoing need for the elderly to pay for help with the basic tasks of daily living. It’s not typically covered by medical insurance, but is it a qualified medical expense for an HSA?

The answer is yes, but there are a number of considerations to take into account to avoid taxes and penalties.  Read more ›

A Radical Move: Giving up Income to Get Health Insurance

Bob Staake

The New York Times
By Rachel Bluth, December 1, 2017

Anne Cornwall considered two drastic strategies in her quest to get affordable health insurance premiums last year for herself and her retired husband.

One was divorce. Another was taking a 30 percent pay cut. She chose the latter.

That maneuver slashed the premiums for the couple, who live in Chattanooga, Tenn., from exorbitant to economical. Instead of $2,00 a month - the amount she quoted for 2017 - their premiums are just $87 monthly, her lost income more than compensated for by qualifying for insurance subsidies.

Ms. Cornwell's solution - which was completely legal - reflects how a growing number of Americans are incorporating strategies for affording health insurance into financial planning, adapting money and salaries to yield better choices - much as people place money int 401(k) plans to save for retirement while reducing their taxable income.

Her solution and others like it may resonate with other Americans who are now buying 2018 health plans on the individual market, through the Affordable Care Act's online marketplaces or outside them. Double-digit premium price increases are forecast for many plans, a trend that has accelerated since President Trump announce that his administration would not pay some A.C.A. subsidies to insurers.

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Don’t make these common, costly Medicare mistakes

By Lorie Konish, February 15, 2018
for CNBC 

Dr. Katy quoted in this article.

  • As more individuals continue working past 65, they face critical decisions regarding what Medicare coverage best suits them.
  • Failure to correctly understand the rules can lead to costly mistakes that you might not immediately be able to undo.
  • Do your homework, carefully research the rules and consult experts before you make any decisions.

Read more