BUSINESS

HSAs Offer Health Care, Retirement Savings

Wed, 14 Apr 2021 15:39:17 GMT

Health insurance coverage and healthcare costs are among the greatest challenges for self-employed Americans, including farmers.

One avenue that provides for cost containment combined with the opportunity to save for the future is the Health Savings Account (HSA). “More people are becoming aware of HSAs and using them as a strategic approach to managing their healthcare,” said Nathan Link, Employee Benefits and Individual Health Specialist for PDCM Insurance, Waterloo, Iowa.

To qualify for an HSA, you need to carry a High Deductible Health Plan (HDHP). According to the IRS website , that’s a health insurance plan with a deductible of no less than $1,400 per person or $2,800 per family, with a maximum annual deductible and other out-of-pocket expenses (like co-pays) of $7,000 per person and $14,000 per family.

“HDHPs often have lower monthly premiums than traditional health insurance plans,” said Link. “Clients can save the difference into their own HSA account and use those funds to pay out-of-pocket expenses as needed. With traditional plans, you pay a higher cost whether you use the services or not. An HSA allows you to keep that money if you don’t have to use it.”

As a savings tool, HSAs offer a triple tax advantage*, in that:

Money deposited into an HSA is not taxed.
Account balances are allowed to grow tax-free; and
Funds can be withdrawn tax-free, provided they are used to pay for Qualified medical expenses , including those not covered by health insurance, like vision and dental care.

While your HDHP will be accessed through a private agent or the Healthcare.gov marketplace, you will have to open your HSA account separately through a financial institution. Many banks and credit unions offer them, and most provide options to invest your balance in stocks or mutual funds for larger growth opportunities.

Employers of a spouse working off the farm also may offer an HDHP/HSA package, in which case they likely will have the HSA structure already set up for the company’s employees.

HSAs are individual accounts. If you are married, the account is in one spouse’s name, but the fund can pay for expenses for your spouse and children covered on your health insurance policy. The annual contribution limit applies to the entire couple or family. In 2021, it is $3,600 per individual or $7,200 per family. That limit includes contributions that may be made by an employer.

If you will be 55 or older by the end of the tax year, you can contribute another $1,000 annually as a “catch up” contribution. If your spouse also is 55 or older, he or she can open a separate HSA and contribute another $1,000 to that account, according to OPTUMbank .

When you start using Medicare – typically around age 65 – you can no longer contribute to an HSA. But at this point you can continue to utilize the funds tax-free for medical expenses and/or your Medicare Part B or Part D premiums. You also have the option of using the money for any other purpose you please after 65. But those funds will be taxed as regular income, just like a traditional IRA.

“Before age 65, it’s never a great idea to use your HSA as an emergency fund for non-medical expenses,” advised Link. “You’ll be assessed a 20% penalty, plus the withdrawals will be taxed as income at your regular rate.”

You also cannot use your HSA funds to pay health insurance premiums before age 65. You can, however, tap them tax-free to pay premiums for long-term care insurance.

“If you can cash-flow your medical expenses and leave your HSA untouched, it will be a tremendous retirement savings vehicle thanks to its many tax-advantage features,” shared Link. “But even if you can’t, there is great peace of mind knowing that you have the funds set aside to cover medical expenses if you need them, and that you can maintain control of that money if you don’t.”

*There are exceptions to these exemptions in a few states. New Jersey and California assess tax on both your HSA contributions and they earnings they generate. Tennessee and New Hampshire tax earnings only.

Rural Communities See Surge In COVID-19 Cases

Fri, 20 Nov 2020 03:06:19 GMT

Large urban centers such as New York City have dealt with the trauma created by COVID-19 for the past month or so. Now, many of the country’s rural communities and their hospitals are facing the same ordeal.

“Experts say more than three-fourths of the nation’s rural counties currently have COVID-19 positive cases,” Clinton Griffiths reported on AgDay-TV on Monday.

He said about 20 rural hospitals are seeing a surge in cases now, and their in-patient beds are full.

Alan Morgan, CEO for the National Rural Health Association, told Griffiths that he sees at least three trends currently underway with how the coronavirus is infiltrating rural America.

“No. 1, we’re seeing the problem in small towns adjacent to [urban] ones; certainly outside of New Orleans and upstate New York are examples of that,” he says. “The second is in communities that are along interstate highways where you’ve got a major truck stop where some of the town’s residents are employed. Batesville, Ind., is an example of that.

“And then, of course, what’s made a lot of news are the resort areas—whether they’re in Idaho or Vail, Colo.—where a lot of people have come in and seeded these communities, unfortunately, with COVID-19.”

Prior to the pandemic, rural hospitals already struggled to keep their doors open to serve people in their communities.

Of the 1,821 rural hospitals in the U.S., Morgan says 47% -- nearly half – operated at a financial loss.

“And that was before they started eliminating all out-patient procedures and elective procedures,” he says, noting some of the services that provided rural hospitals with some profits.

Becker’s Hospital CFO Report, published in December, notes that 2019 was a record year for rural hospital closures, with 18 shutting their doors.

“Across the U.S., more than 600 rural hospitals are vulnerable to closure,” according to an estimate from iVantage Health Analytics, a firm that compiles a hospital strength index based on data about financial stability, patients and quality indicators.

As Morgan shared, what was happening to rural hospitals prior to the pandemic was already a tragedy. Now, it’s even worse. With COVID-19 affecting rural residents, the hospitals, their staff and medical services are needed now more than ever.

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Check Out Your High-Speed Internet Options

Wed, 18 Nov 2020 04:42:00 GMT

High-speed internet service in the U.S. is a classic case of the haves and the have nots.

In heavily populated states and metropolitan areas, people have access to 4G or 5G technology.

But that’s not the case in many rural parts of the country. At least 14 million farmers, ranchers and residents in rural America don’t have access to broadband service, according to the 2018 Federal Communications Commission (FCC) Broadband Deployment Report. (The FCC defines broadband internet service as a speed of at least 25 megabits per second [Mbps] download and 3 Mbps upload.)

The main issue is most internet service providers don’t see a sufficient return on their investment to offer broadband in regions with a low population.

Speed, Availability, Cost

Slow internet service can be a serious problem, as it can negatively affect a population’s quality of health care, education and even its financial well-being, says Victoria Smith, staff researcher for SatelliteInternet.com .

“Be informed about what’s available in your area and what’s the best plan for you,” she says.

“Satellite and DSL (digital subscriber line) are perhaps some of your best options in terms of availability. Satellites can beam down an internet connection to pretty much anywhere, and DSL hooks up to your existing phone lines,” she adds.

Most people will probably only want DSL if the alternative is dial-up service. DSL is faster than dial-up, and you usually have a choice of price plans based on speed.

At the other end of the spectrum is satellite service. It is available through Viasat and HughesNet. Monthly costs range between $50 and $150, depending on the service.

To check your internet options, visit broadbandnow.com .

To find the 10 fastest and slowest cities for rural internet and the pros and cons of various service providers, visit: AgWeb.com/high-speed-internet

Helm Agro Grows New Sales Territory

Wed, 11 Nov 2020 02:07:25 GMT

Helm Agro US, Inc. announces the hiring of John Bruce as Sales Manager for the company’s newly created Eastern Corn Belt and Northeast sales territory.

This new sales region was created to increase the level of customer service provided by Helm Agro US to its agricultural distributor and retail partners throughout the Midwest and Northeast. In this role, Bruce will be responsible for driving sales of the company’s crop protection portfolio and supporting its channel partners in Illinois, Indiana, Kentucky, Michigan, New York, Ohio, Pennsylvania, West Virginia, Wisconsin and New England. Bruce joins the organization with more than 20 years of experience in territory management in integrated turf, ornamental and agricultural product sales.

Most recently, he worked as Midwest Sales Manager for Amvac Environmental Products. Prior to that, Bruce served both Fafard Group and Syngenta in Territory Sales Manager positions. He also worked in sales and account management roles with Cheminova, Inc. and Eden Pest Management.

“We’re fortunate to have someone of John’s caliber join the organization,” says Jan Stechmann, President of Helm Agro US. “John is a dynamic professional with a proven track record in solution-based product sales. Adding him to the team speaks to our recent growth and effort to strategically position ourselves to not only meet, but exceed customer expectations.”

Bruce holds a B.S. degree in Environmental Science from Lynchburg College. He earned his M.S. degree in Environmental Science and Urban Entomology from Washington State University.