Friday, March 18, 2011

Lifestyle Health Plans: HDHP, HCPA, HSA, HRA, HIPAA

Lifestyle Health Plans Termins

High-Deductible Health Plan (HDHP)

Health Insurance Plan, which has a high minimum deductible, which do not cover the initial costs or all costs for medical expenses. Deductible forces the insurance holder to pay the first part of medical expenses before insurance kicks in. The minimum deductible of the plan fall into the category of HDHP varies each year. In 2006, he made more than $ 1000 for individuals and $ 2,000 for families.

These health insurance plans become more common when a new health savings account (HSA) legislation was signed into law in 2003. To open an account HSA, a person must first HDHP. These high-deductible health plans that are believed to lower the overall cost of health care, forcing people to be more aware of medical costs. The higher deductibles and lower insurance premiums, resulting in health insurance more affordable.

Healthcare Power Of Attorney (HCPA)

Legal form, which allows a person to another decision regarding his or her "health and health care. Health care power of attorney becomes active when a person is unable to make decisions, either consciously communicate intentions with regard to treatment.

Health care power of attorney allows people who have been unable to make their own decisions, which carry out their beliefs and wishes regarding medical procedures. A person can communicate with the agent on behalf of the sick or injured, prevention of unwanted treatment. The process of designating the HCPA is quite simple, and the privilege may be revoked at any time.

Health Savings Account (HSA)

Account created for individuals who fall under the high deductible health plans (HDHPs), to save for medical expenses that HDHPs do not cover. Contributions come at the expense of individuals or individual employers and restricted to the maximum each year. Contributions are invested over time and can be used to pay for qualified medical expenses, which include most medical care, such as dental, vision, and for the most anti-drug.

HSA account three major tax savings: the money contributed to the tax bill, the tax increases for free, and some conclusions are deductible if they are intended for qualified medical expenses. To qualify for the HSA account, you must have a coating with high-deductible health plan, and you should not be enrolled in Medicare or be listed as a dependent on another person's tax return.

Accident And Health Benefits

Fringe benefits provided to employees for sickness, accidental injury or death resulting from an accident. These benefits include payment of hospital and medical expenses, as well as income payments.

As a general rule, employees may exclude the benefits from gross income. There are a number of incentives for the distribution of these benefits for employees because the employer has the right to deduct the payments.

Health Reimbursement Account (HRA)

Customer-funded plans that reimburse employees for incurred medical expenses not covered by the company's standard insurance plan. Because the employer funds the plan, any distributions are tax (the employer). Reimbursement dollars received by the employee as tax free.

Downturn in HRAs is that companies can decide whether to start or fund such a plan. In addition, if the plan has already been created, the employer has the right to cancel it on almost any moment.

How to manuals, the employee may be reimbursed for qualified medical expenses from his employer. Funds received without the tax, but also because the plan is funded by the employer, the employer has the right to cancel or modify the distributions at any time. Despite this, many workers HRAs regarded as a valuable benefit given the rising costs of health care.

Health Insurance Portability And Accountability Act (HIPAA)

The law created by Congress in 1996, which amends both the employees retirement income Security Act (ERISA) and the National Health Service Act (PHSA) in efforts to protect individuals covered by health insurance and establish standards for storage and confidentiality of personal medical data .

HIPAA provides an individual plan of health care available, portable and renewable, and it sets standards and methods, such as medical data shared between the U.S. health care system to prevent fraud. He pre-empts state law, if the state rules are more stringent.

This law was amended in 1996 to include processes for the secure storage and exchange of medical patient information in electronic form. The Act also has the administrative simplification provision, which is aimed at increasing efficiency and reducing administrative costs through the creation of national standards.

Lifestyle Health insurers, health maintenance organizations (HMOs), health care accounts and other entities that engage in personal health information must comply with the standards set by HIPAA. Failure to comply may result in civil or criminal liability.

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