In the West Vincent Bills List for the township meeting held on February 24, 2014 a payment of $50,000 is listed labeled "Employers Contribution to HSA".

What do you  think that payment is for? Mike Schneider, Republican Committeeman for District 2 (the Firehouse polls) inquired. It turns out this is a donation put forth by the township to cover insurance deductibles for Township employees.

An HSA is a Health Insurance Medical Savings Plan. Think of it as a 401k. That savings account can be used to pay medical deductibles.   What the Township Administration has done is purchase a HIGH DEDUCTIBLE insurance plan and is GIVING the money to offset the high deductible that must be paid by the employee. Here's the best part. If the employee doesn't need to go to the doctor, the employee doesn't have a deductible to pay, but the money is still in his/her account as part of the savings plan.

That leads to two questions:

What is the point of a deductible? To lower the cost of health insurance for the Township, therefore, the taxpayer.

Why is this money put into the savings plan where it becomes a gift to the employee if it is never use to pay a deductible expense? I wish I knew the answer but it certainly looks like a nice fringe benefit to me.

Most importantly, this is about masking what is being done by the Administration. Cheaper insurance costs look good in the budget, doesn't it? In a separate action, township reaches around into another pocket in the budget to pre-compensate Township Employees and the taxpayer never knows unless it is questioned, like it was on February 24. Can you imagine your employer giving you money for an insurance deductible, especially one you never call upon? Well, you ARE the employer and you ARE doing exactly that and you didn't even know it!

Is this the proper time to mention you should have received your West Vincent Township tax bill from Berkheimer by now? Make sure to get that tax bill paid so that money gets to places you will never know.

Oh and by the way, did you see http://chestercountyramblings.com/2014/03/11/the-song-remains-the-same/?  It's well worth a look.

Best wishes


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