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Sunday, April 21, 2024

GOP Introduces New 402K Plans, So Americans Can Save For Routine Medical Care When They’re Broke


In response to complaints from health insurance companies that too many Americans are going into bankruptcy, Republicans have introduced a new tax reform measure designed to help Americans save money for routine visits to the doctor should they become destitute as a result of a paying excessively high medical bills.

The new tax reform plan, called a 402K, allows Americans to save their earnings tax-free in a special account. In the event they become bankrupt from a catastrophic illness or other health crisis, they can then withdraw funds from the 402K without penalty to pay for routine procedures in the future, even though all their other money is gone.


Tax Reform To Help Everyday Americans

“This is tax reform that will truly assist the average American,” said Arthur Dantreet who writes for the conservative blog The American In Context.

“Not only will it allow Americans to save tax-free to pay medical bills after they have exhausted all their other savings, it will be a shot in the arm for the health care industry when people who are bankrupt tap into these additional funds to pay for things like doctor’s visits. This added growth in the economy will spark a rise in GDP which will help reduce the federal deficit.”

“It’s a win-win-win-win-win.”


Even Useful After Death

Another feature of the new law is that in the event of a person’s death, the 402K can be used by hospitals to pay for the expensive procedures they may have undergone during their final days. “The 402Ks will give a cushion to the hospital to recover fees even after a patient has left this earth, and is no longer able to pay on their own,” said Mr. Dantreet.


Should Have The Votes

Although some members of congress are concerned that the new 402K plans will reduce investments in 401Ks, most agree it will be worth it.

“Just because a person is impoverished due to paying exorbitant medical bills, doesn’t mean they won’t need medical care in the future,” Mr. Dantreet stated. “This new tax reform will give them the chance to save, so that when they have nothing left, they can still keep paying.”


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