How do Federal Regulations Affect Medical Insurance?

Medical insurance is something that we all have to do deal with at some point. While it is not mandated by federal law that we have to have insurance, the government does have its influence on it. Having a good insurance plan is essential to maintaining your financially stability. Most of the time, you have a great deal of freedom in the area of insurance. However, in some areas, the government steps in and regulates certain things that affect you directly. Here are a few examples of how federal regulations affect medical insurance.

Health Savings Accounts

One of the most popular vehicles to fund individual health care is in the form of a health savings account. A health savings account is an account that you set up with any financial institution that allows you to put back money for medical care. The government set up a system for health savings accounts where you can deposit money into them without paying taxes on the money. It can go directly from your paycheck into the account before tax. Then when tax season rolls around, you can actually deduct that amount of money from your taxable income. The government has made it easy for you to save for medical expenses when you have this type of account. However, with their current regulations, you can only put a certain amount of money in your account each year. They cap the total amount that you can deposit and therefore affect your medical insurance coverage.

Allowing Care for Everyone

Another way that your medical coverage is directly affected is when medical facilities accept everyone for emergency services. The law states that no one can be denied emergency care regardless of whether or not they have insurance. Many illegal immigrants and people without jobs do not have insurance. When one of these people is in an accident or some other emergency situation, they can go to an emergency room and receive care. Without insurance, they cannot pay for the treatment. Therefore, the treatment bill gets passed on to those that have insurance in the form of higher prices. They have to charge you enough to make up for the ones that cannot afford it.

Providing Medicare

Medicare is a government provided health care system for the elderly. Once you are old enough, you start to receive benefits in much the same way that you would from your insurance company. If you are old enough to get this coverage, you will be directly affected by the government's decisions on health care. One way that it will affect your medical coverage is by taking part of the burden on. Medicare will pay for many different medical bills including surgeries, hospital stays, and more. Depending on which plan you have, you will probably need a small insurance policy to fill in the gaps. These supplemental policies are common and are less expensive than getting a full medical policy.


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