I think it’s fitting that I was in our nation’s capitol on tax day.  After all, TASC is in the business

of saving you tax dollars.  While there, I participated in an important event held at the White

House: the Fourth Annual Health Savings Account (HSA) Briefing.  Julie Goon, Special

Assistant to the President for Economic Policy, announced that because the President struggles

with HR 5719, he will veto it if it makes it to his desk.  Of course, this bill caught my attention! 

It will require HSAs to have claim substantiation rules similar to those now in place for Flexible

Spending Accounts (FSAs).

 

I believe various factors will work to improve the chances that this bill will pass, despite the President’s concerns.  First, a significant portion of the bill has bi-partisan support.  In fact, a floor vote in the House passed while I was in Washington.  Second, the original bill’s effective date was modified from January 1, 2009 to January 1, 2011.  This delay will significantly soften the blow on Participants and gives us in the industry more time to adjust our operations.  Third, the HSA-related portion of this bill contains elements of how the government will pay for the some of the other provisions in the bill, thereby eliminating a grievance all too common with new legislation.  And fourth, the House Ways and Means Committee has reviewed evidence of HSA funds being used errantly for non-medical expenses. 

 

TASC’s position is consistent, whether we’re talking about HSAs or Medical Savings Accounts:  we support any legal tool that can help to make healthcare more affordable for each and every one of us.  Further, for some time we have advocated a reduction in the amount of scrutiny FSA claims have received.  I don’t think it’s a stretch to suggest that claim substantiation parity for HSAs and FSAs will likely reduce the level of scrutiny both receive!  Most likely we will reach a point somewhere closer to the middle of an “evenhanded spectrum.” 

 

Reasonable, convenient and consistent.  These words describe TASC’s position.  I believe our nation’s business owners and employees who are participating in consumer drive health care (HSAs, FSAs and HRAs) would support this position…especially the hundreds of thousands who are TASC’s fortunate customers.

 

 

 

 

A column in the Milwaukee Journal Sentinel on-line edition recently caught my eye.[1]  The moral of the story is clearly spelled-out in its title: “Outsourcing health care may be a thrifty alternative.”  Indeed, the rising cost of healthcare in the United States is making it more and more attractive to have certain medical procedures completed overseas. 

 

These new “medical tourists” are traveling to destinations where healthcare is less expensive, places like India, Thailand and the Philippines.  This sort of medical travel has become especially attractive to those with consumer-driven health plans.  And now, according to this column, some companies are encouraging their employees to take this route, even providing incentives to those who do so.

 

The author of this column writes in agreement with this arrangement.  In fact, he ends his column by stating that the next time he needs hip replacement surgery, he will fly to Ireland for the procedure and recuperate over a pint of Guinness.  Now, I support consumer-driven healthcare as much as the next person.  I agree that as a society, we need to be better consumers when it comes to our healthcare, and that we need to continue to pressure our healthcare providers to contain costs.  On the other hand, when it comes to flying to a different country for a medical procedure, well that’s where you can count me out!

 

In my opinion, being a good healthcare consumer comes down to far more than comparing costs.  Quality of life issues must be considered.  How possible is it to attempt effective and efficient due diligence on the procedure, the facility, the physician, and the overall quality of care when you are half a world apart? 

 

Just a few years ago I underwent a hip resurfacing procedure.  I did my homework beforehand.  I talked to friends, neighbors, and co-workers about their experiences and about the experiences of people they know.  This “research” helped me to be better informed about the hospital and the physician who operated on me…long before I even stepped into the facility.  How possible would it have been to do this research if I had gone abroad for this procedure?

 

Along with the rising popularity of medical travel I will briefly mention a few additional issues that are major concerns to me.  First, healthcare plans can be structured to favor those in higher income brackets, allowing them to choose from a variety of options simply because they have the funds, while lower-wage employees may be forced to go with a particular plan, simply because they can’t afford anything better.  That dichotomy just doesn’t feel right to me. 

 

Second, what if we want to save money on our medicines?  Isn’t it ironic that if we attempt to purchase prescription medicines from Canada the United States government will clamp down on us in an effort to protect our nation’s drug companies?   Sure, we’re told prescriptions are more expensive in the U.S. because drug research and development are costly.  But if I choose to fly to India to have my hip resurfaced, the federal government wouldn’t flinch.  Indeed, my employer may even give me a bonus for choosing a cost effective option.  Very ironic, isn’t it?

 

 

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[1] http://www.jsonline.com/story/index.aspx?id=735766
April 06, 2008

Yes, it’s an election year, and we’ve been hearing plenty of discussion about universal health care.  Does all the talk concern TASC?  Not really.  We already expected some reforms in the nation’s health care landscape.  And while such reforms may be inevitable, we know it will be some time before they become a reality.  Indeed, any such reforms will not require a dramatic change in the delivery system.  For example, moving to a single payer system—a change which could pose a threat to TASC and our Providers—is still an unlikely idea and one that is far off in the distance.
The nation’s different political parties approach these issues from opposing points of view.  In my opinion, a Republican President will further the consumerism movement set in motion by the current administration. A Democratic President will push for universal health care with ingredients like government mandates, employer participation, and consumer responsibility, all with the objective of reducing the number of the nation’s uninsured.  I do not think a more aggressive and dramatic move will be implemented—or if implemented, successful—no matter who is in the White House come next January.
Here is what the front runners are saying:
Hillary Clinton:  Clinton believes in offering more choices and lowering costs. Under her proposal, there will be a choice of affordable plans from which to pick.  To help cover costs to working families, the plan will provide tax credits and will limit the amount that working families have to pay for health care.
John McCain:  McCain believes in personal responsibility and that insurance reforms should foster competition and innovation so as to increase the variety and affordability of insurance coverage available to American families.
Barack Obama:  Obama believes in making a new national health plan available to all Americans, similar to the plan available to members of Congress. Employers that do not make a meaningful contribution to the cost of quality health coverage for their employees will be required to contribute toward the costs of the national plan.
I have participated in the healthcare realm as a recipient, a father, a husband, an employee, an employer, an insurance agent (past professional life), and as a third party administrator of medical reimbursement plans.  I think this experience means I have a unique perspective on the matter.  From that perspective I offer you my opinion of the changes that will be coming; I support effective steps to modify the current system.  These steps should not threaten our superior system of health care—a system which is supported by a competitive and well-funded environment.  These steps should continue to promote responsibility on the part of the health care consumer.  These steps will most likely include partially mandated (federal or state level) incentives for a participatory system involving government, employers and individuals.  And finally, these steps will embody a major goal:  to override today’s massive separation of services across our nation’s socio economic classes and to reduce the number of our uninsured neighbors.

Sometimes, you just get it right.  For years we at TASC have maintained that the owners of Sub Chapter S Corporations don’t need to install a Health Reimbursement Arrangement (HRA) in order to deduct health insurance expenses from their income taxes.  The government has stepped in with an Internal Revenue Service (IRS) notice that clarifies the rules regarding this issue.  As it turns out, TASC has interpreted these regulations correctly all along.  And we kept the confusion in perspective, refusing to put profit ahead of the needs of our small business owner Clients. 
Unfortunately, some of our competitors have preyed on their Clients and their tax professional.  Taking advantage of the confusion, these competitors stressed that the HRA was absolutely vital for Clients who hoped to deduct their health insurance premiums from their taxes.  These are the same firms that have tried to beat us over price. Our response:  you get what you pay for!  As with most things, superior quality isn’t cheap. 
What does your administrative fee pay for?  It pays for a third party administrator committed to bringing new ideas and concepts to the market.  TASC was first to spend the time and money to research the Section 105 (HRA) concept for sole proprietors, and we were first to bring it to the market.  Before TASC, sole proprietors had no tax saving options when paying for their health care.  TASC changed all that.  Indeed, our full-time Compliance Specialist constantly monitors developments that might affect our Plans, keeping an eye on the ever-changing rules and regulations and apprising you of developments when need be. 
Some competitors’ websites talk about recent audit decisions that reinforce various regulations surrounding these Plans.  They present these decisions as good news for Clients.  But they don’t tell you the whole story…that TASC assisted the defendants in these cases.  Yes, TASC was there. We paid the attorneys fees, we provided documentation, and we risked the penalties and interest that would have accrued had the audit been unsuccessful.  The ruling references TASC (aka AgriPlan and BizPlan) and can be viewed by clicking here .
We work hard for you.  We research all avenues so we can offer premium Plans and services.  We staunchly defend you so you can tend to running your business.  We hope you agree that TASC is an administrator that truly earns its fee.

The end of the year is in sight, and soon we will be enjoying the holidays.  For those of us in the employee benefits administration industry, the holiday season signifies a time of increased activity at work.  The months leading up to and following the end of the year are traditionally the busiest time of the year for our business.  Besides signing up new Clients and enrolling their Participants, this is when returning Clients and Participants re-enroll.  Yes, it will be quite hectic around TASC during the next few months.
More than ever, this year TASC is geared up for the peak season!  Since last year we have nearly doubled our number of Customer Service Representatives.  In addition, we’ve added positions to both our Outbound Call and e-mail staff.  Thanks to a creative team of planners, both buildings on the TASC Campus now have Contact Centers with teams trained to handle Client and Participants calls.  And we have a detailed plan in place for answering phones when call volume is higher than expected.  In essence, if needed, the entire TASC staff is prepared to serve as one large Contact Center.
We continued to strengthen our on-line applications.  The latest release of MyTASC went extremely well and addressed 30 bugs and enhancements.  In every instance, we have made it easier and faster for Clients and Participants to make changes.  Besides upgrading Enrollments, Payment Verification Reports, and Participant Lists, we have enhanced the Account Management pages so they open and upload faster and function better.
All of this growth and subsequent development is fueled by our aggressive Sales Department; they’re on track for another record-setting year.  And for that I am extremely grateful.   I thank all of our Providers, Clients, and Participants for their continued support and confidence in TASC.  All of us at TASC send you a sincere hope for a safe and wonderful holiday season and a healthy and happy year ahead.

We invite your comments regarding the CEO Blog or about TASC in general. Our new CEO Blog feedback option makes it easy to send your comments directly to me.  To do so, simply send an e-mail to ceofeedback@tasconline.com.