Ames, Iowa Obamacare Perspective
Before I was an Iowa State University (ISU) cyclone I was a Ames High School little cyclone. Ames is my home town. The motto at my high school is, Ames High Aims High! I was going to Central Junior High the 1st time I watched Dan Gable wrestle and he broke the opponents ankle in about 10 seconds. I thought WOW, what a waste of a quarter. I was disappointed it was over so quickly.
I enrolled the USA’s 1st tax-free Health Savings Account (HSA) in the government’s Original Pilot Test in October 1996, the same month FOX News was born. For the 1st 7 years of the test they were called tax-free Medical Savings Accounts (MSA). Today the tax-free HSA is the centerpiece of Republican Health Care Reform. IRAs and 401Ks are old taxed accounts. HSAs enjoy tax-free deposits, growth and withdrawals – AMEN! Total tax FREEDOM. At 1st, in the Test, you had to be self-employed because the large insurance companies could care less about those farmers compared to their cash cow, employer-based insurance. I showed the Des Moines Register that a 30-year-old couple and 2 children would save more in taxes with their tax-free deposit at the bank than the cost of their health insurance. Everybody can afford to save money. But the Des Moines Register is so Liberal they refused to tell their readers.
In May of 1999 I met with ISU’s Dr. Neil Harle, Director, Center for International Agricultural Finance, and was surprised when he told me, “I think my youngest son is named after your little brother.” I had no idea his son was named Rod. A few days earlier President Clinton had bombed the Chinese Embassy and my father-in-law was arriving in China that day. Dr. Harle said, “Don’t worry about it. The Chinese people love us.” I told Dr. Harle about my frustration with the Des Moines Register not reporting on the tax-free MSA. Dr Harle said, “If a reporter wrote a story on the MSA they would be fired.” Dr. Harle had asked me for MSA information and he started a class on tax-free MSAs at ISU. American farmers know Dr. Harle of Iowa State University because when they do their taxes he wrote the book.
I was on Jan Mickelson’s WHO Radio show a couple of months ago explaining Republican Reform of President Trump. I started off the show with an example from Ames. I explained that a 64-year-old couple earning $65,000 a year gets no Obamacare income-based tax credits to purchase health insurance that costs $1,885 a month, $22,620 a year, with a $6,500 deductible per person. BUT, if they put $1,000 in their HSA at the bank they get $19,584 in Obamacare tax credits. This isn’t magic it is just math and how poorly Obamacare is designed. My question is, if this couple was a small employer in Iowa why are they spending $20,000 a year, per family, when the government is giving it away for free? The reason of course is the businesses are uninformed and have been brainwashed into oblivion. If it is a small Iowa employer, with 30 employees, the owner is probably paying half of the $20,000 a year cost and making his employees pay the other half, $10,000 a year, to add the family to the employer’s insurance with a $6,000 deductible. This disqualifies the employee for Obamacare tax credits.
If this Iowa employer with 30 employees is 50-years-old, married with 2 children, and earning $80,000 a year just look at the math. If he cancels his group health plan everybody in the company qualifies for a Special Enrollment Period (SEP) and qualifies for tax credits. The law requires that the employer MUST drop his cost to ZERO. The owner gets $13,056 in tax credits a year and his total payment is $433 a month. The employees usually earn less. Lets say the same ages and children for the employee but they only earn $50,000 a year. The employees cost after tax credits is $119 a month and the employer’s cost is ZERO. The employee would want to kiss that employer. I tell the owners they should put $200 a month into the tax-free HSA of employees with family coverage and $100 a month for singles. Then these employees are ecstatic, exactly like I want them, because their $1,000 a month cost has dropped to $119 and the employer is putting $200 a month in their HSA at the bank for 1st dollar coverage of medical, vision and dental expenses. Let’s face it, the employee saves enough to buy 2 new cars.
I train agents to sell groups of 30 as easy as breathing air. It’s not hard because everybody wins. The employer saves over $100,000 a year and the employees make out like bandits. The State of Iowa is also a big winner because now the State is collecting 6% State income tax on everybody’s higher income. The over-priced employer-based plan was an exclusion and it cost the State of Iowa 6% on the high premiums. The State of Iowa earns an additional $10,000 a year from the employees on their State income tax. Iowa Governor Branstad should have educated the business community in Iowa if he was competent. The truth is Governor Branstad is the worst health insurance negotiator in America. Blue Cross of Iowa conned the Governor into the taxpayers paying over $27,000 a year for a 30-year-old State employee with ONE child! Here are the rates for Iowa State Employees:
Iowa taxpayers are paying the whole load on these employees so they get the more expensive “Iowa Select” plan. As you can see if an 30-year-old employee, costing $953.70 a month, adds a child the taxpayers pay $1,279.08 more for that child per month! That is by far the most I have ever seen to add on a child anywhere in America. Trust me, I know the rates coast to coast and Governor Branstad was not looking after the interests of the Iowa taxpayers. Branstad is the perfect example for term limits. The sooner the Governor goes to China the better it will be for Iowa taxpayers.
Here is the 18 minute WHO Radio Show I did with Jan Mickelson 2 months ago. I did the show right before we found out how large the Republican age-based tax credits are. I said the credits for a 30-year-old couple and 2 children were $4,200 and they are larger at $9,000! Jan has had me on his show 5 times and he is an HSA freak. (He still calls them MSAs) With a $9,000 age-based tax credit half will go to the family’s tax-free HSA or $4,500 after President Trump pays 100% of the family’s health insurance cost. To bad that Iowa Senators can’t or won’t explain Republican Reform.