We just heard from one of our supporters who moved to Texas where she got medical insurance to cover herself for catastrophes or, as some might say, major problems. Some call that genuine insurance. We certainly do. There is not a lot of sense in paying for auto or home insurance with no meaningful deductible. The same goes for medical coverage. Look at what our friend did:

March 9, 2006: “I am finally getting settled in Austin. I just read your article on HSA’s (Health Saving Accts) in Hawaii Reporter. I have just signed up for an HAS account and qualified health insurance. The insurance cost is $204 per month. It has a $5,100 deductible with no co-insurance. As of this year I can put $2,750 in a health savings account that is deductible under federal taxes. I do not expect to spend that amount in 9 months so I will have money left over for long-term savings. Next year I can set aside even more tax deductible funds in the HAS since it will be for a full year.

This is a much better way of handling health insurance that the mandatory plan Hawaii has. It would be great if all workers in Hawaii had the opportunity to do this and get more money in their paychecks if their employers did not have to spend so much money for health insurance. By the way, I am 61 (62 soon) in good health which effected insurance premiums.

- Clarice Johnson

The final point is that Clarice will, when she routinely visits a medical provider, be paying cash. Here’s how we predict it will go.

Clarice: “Hello doctor, I am a new patient and I would like to tell you about my philosophy about medical treatment.”

Doctor: (Curious & hesitant) “Ok, what is that?”

Clarice: “I am here to get your best professional advice. I do not want it tainted by any government or insurance company rule or regulation. Is that ok?”

Doctor: (Delighted) “Yes, of course. Thank you.”

Clarice: “And doctor, you get your money right away. No six month wait. Consequently, I would like a discount. Is that ok? And what will it be?”

We believe the doctor will say 30 percent, 40 percent or even 50 percent.

Thus, Clarice will, barring an emergency, have lots of greenbacks bouncing around that savings account next year. And, it’s her money, not that of the government or the insurance company. She can even use it to pay for long-term care insurance.

We thank Clarice for a great story and wish her the best. We also miss here. Texas gained a good one.

Richard O. Rowland is president of the Grassroot Institute of Hawaii He can be reached via email at: mailto:grassroot@hawaii.rr.com