Philadelphia Reflections

The musings of a physician who has served the community for over six decades

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Health Savings Account--Outline

Data from CMS, 2013:

Medicare enrollees: 53 million (+3% per year)

Medicare expenditures:$585.7 billion($11,253 per enrollee x 20 years=$225,000 lifetime)

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APPROXIMATED

a. 1/4 of premiums on half(x 2 programs)=($112,500/4)=$28,000=or $1400 per year over 20 years, plus interest

b. 1/4 of withholding on half similarly =$14,000 total = or $700 per year over 40 years, plus interest

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CONTRIBUTIONS................................................................Death................Perpetuity

Age....................................O...............25.............................65.....................84........................105

Childbirth...........................1800

First-Last Seeding................... 400

Payroll Withholding.........................................................28,000

Seniors Premiums......................................................................................28,000

Total...............................$58,200

------------------------------------------------------------------------------------------------------------------------EXPENDITURES..

ASSUMPTIONS Childbirth Gift..................................18,000*

Childbirth Escrow............................... 250*

Contingency fund ................................100*

4 Last-years Re-insurance.(200,000)..666

Child Medical Expenses.....................17,000*

Interest on 17,000(age 0-25)................(85,000*)

--------------------------------------------------------------------------------------------------------------------------RUNNING BALANCE

ESCROWED INVESTMENT INCOME @ 7%

Individual Programs: Child Gift...................250(0)*............$1,125(25)*..$1,625(65)*..$64,000(84)*..$375,000(104)*

Payroll Tax ................0.00(25)..........$28,000(65)...$1,120,000(85)...$35,840,000(104)

Medicare Premiums...0.00(65)..........$28,000(85)...$1,148,000(104)........

Notice: Affordable Care Act, Contingency fund, Retirement provisions -- omitted.

Running Totals=$250(0)..$1,125(25)..$18,000(65)..$90,000(84)..$420,000(104)

Running Balance=$250(0)..$1,125(25)..$28,500(65)..$912,000(84)...$35,840,000(104)

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Total

 

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