223(c)(2), with a $2,000 annual deductible
. H has no other health coverage, is not enrolled in Medicare and may not be claimed as a dependent on another taxpayer's return.
Situation 2: The facts are the same as in Situation 1, except that the FSA and HRA are limited-purpose arrangements that pay or reimburse, pursuant to the written plan document, only vision and dental expenses (whether or not A satisfies the minimum annual deductible
Contributions are limited to 75% of the annual deductible
for family policies and 65% for individuals.
The big difference is cost sharing through annual deductibles
Assume employee A, who is single, incurred the following medical costs during 1989: 1) annual deductible
under the Company's medical plan of $500; 2) employee's share of medical expenses partially covered under the medical plan of $1,600; 3) dental expenses not covered under the medical plan of $800; and 4) other medical expenses not covered under the medical plan of $700 for a total of $3,000.
In 2009, when Obama took office, 22 percent of workers were in plans with an annual deductible
of $1,000 or more for single coverage, according to Kaiser.
Such plans must have an annual deductible
of at least $1,000, or $2,000 for families, according to the Office for Oregon Health Policy and Research.
When the annual deductible
is $1,000, "you think twice about going to the doctor if you have a cold," says Blaine Bos, a Mercer consultant in Minneapolis who helped write the study report.
Medicare beneficiaries have an annual deductible
of $275 for prescription drugs.
An employer funds the plan by making annual deductible
contributions on behalf of eligible employees.
MCCA changes to Part A of Medicare, effective January 1, 1989, include hospital coverage for as many days as required with the payment of one annual deductible
amount (between $564 and $580 in 1989) and coverage for up to 150 days per year of skilled nursing facility (SNF) care without the requirement of prior hospitalization and with copayments (about $20/day for 1989) required for only the first eight days of care.