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Health Savings Accounts for Your Business and Employees
Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Contents The Health Savings Account Concept
Top 5 Reasons to Choose an HSA Qualified Plan Why HealthEquity? How to Enroll Consumer and Customer Support Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Health Savings Account: Concept
Lets employees “build equity” in their health plan Go to higher deductible Give savings to employee Unspent money rolls over year-after-year Over time, employees have enough saved to cover deductible and OOP Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Qualified Plan Needed to Open an HSA
Qualified high deductible health plan (HDHP) Minimum required deductibles : $1,200 for self-only coverage $2,400 for family coverage Maximum out of pocket limits: $5,950 for self-only coverage $11,900 for family coverage Have no other unpermitted health coverage* Can’t be enrolled in Medicare Can’t be claimed as a dependent on someone's tax return *Automobile, dental, vision, disability ,and long-term care insurance allowed; may also have coverage for a specific disease or illness as long as it pays a specific dollar amount when the policy is triggered. Employer wellness programs permitted if they don’t pay significant medical benefits. Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Maximum Contribution Levels
Annual Contributions (subject to change every year, adjusted for inflation) Individuals: $3,050/yr Families: $6,150/yr 55 and over: Added “catch-up” contribution: $1,000/yr Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2009 by HealthEquity, Inc. All rights reserved.
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Some Qualified Medical Expenses
Acupuncture Contact lenses Surgery Alcoholism (rehab, transportation for medically advised attendance at AA) Crutches Telephone equipment and repair for hearing-impaired Dental treatments Eyeglasses/eye surgery Therapy Hearing aids Ambulance Transplants Home care Amounts covered under another health plan Weight-loss program (as part of therapy prescribed by a physician for a specific disease) Long-term care expenses Medicines (prescribed, not imported from other countries) Annual physical examination Artificial limbs/teeth Wheelchairs Nursing home Birth control pills Wigs Nursing services Body scans Optometrist Breast reconstruction surgery Oxygen Stop-smoking programs Chiropractor Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2009 by HealthEquity, Inc. All rights reserved.
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Some Unqualified Medical Expenses
Baby sitting, childcare, and nursing services for a normal, healthy baby Dancing lessons Diaper service Elective cosmetic surgery Electrolysis or hair removal Funeral expenses Future medical care Hair transplant Health club dues Insurance premiums other than those explicitly included Medicines and drugs from other countries Nonprescription drugs and medicines Nutritional supplements, unless recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician Teeth whitening Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Sample Worst-Case Scenario
In this example, a person spends less money in the HSA plan in the event of major medical expenses Illustrative purposes only Low Deductible Plan HDHP-HSA Plan Plan Design 100 deductible $1,500 deductible $1,000 co-insurance $1,500 co-insurance Annual Payroll Deduction for Insurance $1,000 $700 Co-Pays $400 $0 Deductible (or medical expenses paid by you) $100 $1,500 Additional Out of Pocket (co-insurance - 80%) Total Expenses $2,500 $3,700 Minus Employer HSA Contribution NA $1,050 Minus Tax Savings (Fed & State - 22%) $385 Total Out of Pocket Costs $2,315 Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Sample Average Medical Expenses
If a person has $500 in medical expenses, he/she can save money in an HDHP-HAS-based plan Illustrative purposes only Low Deductible Plan HDHP-HSA Plan Plan Design 100 deductible $1,500 deductible $1,000 co-insurance $1,500 co-insurance Annual Payroll Deduction for Insurance $1,000 $700 Co-Pays $400 $0 Deductible (or medical expenses paid by you) $100 $1,500 Additional Out of Pocket (co-insurance - 80%) Total Expenses $2,500 $3,700 Minus Employer HSA Contribution NA $1,050 Minus Tax Savings (Fed & State - 22%) $385 Total Out of Pocket Costs $2,315 HSA Balance (Medical Expenses - HSA Contribution) Medical Expenses ($500) Employer HSA Contribution HSA Dollars that Roll Over $550 Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Top 5 Reasons to Choose HSA-Qualified Plan
Save on premiums Typically from percent. See a substantial drop in premium trend Coverage kicks in for catastrophic care only, stopping the spiral of increasing premiums for benefits vs. insurance risk Earn employee goodwill and recognition of value Instead of paying for unneeded coverage, invest the difference in HSAs The difference in premiums may cover annual deductible Consider matching employee contributions to provide superior benefit levels and cover employee’s risk up to the out of pocket maximum Research shows interest in HSAs increases when employees have account funds to cover deductible Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Top 5 Reasons (Continued)
Help employees save for retirement An HSA is a medical 401(k), but better Put in pre-tax money in, earn interests or investment returns Money used for healthcare expenses, or health premiums after age 65, never taxed After 65, use funds for anything without paying a penalty* Let employees drive their own healthcare choices Research shows people spend their own money more carefully. You spend the same, but gain a partner in controlling costs—your employees! By funding the HSA, you save without shifting inordinate costs or risk to employee *Funds used for non-medical purposes are taxed as income Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Why HealthEquity? Helping consumers understand and manage the financial side of healthcare One of the largest HSA administrators Proven quality and high-touch performance year-after-year Integrated enrollment and administration 24/7/365 live support for employers and employees— before and after enrollment Help members save and spend healthcare dollars Specialized in healthcare accounts—HSAs, HRAs, FSAs, VEBAs Servicing more than 12,000 employers, 40 health plans, and 259,000 accounts Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Employer Services Employer portal Employee reports
Easy-to-use online employer portal to manage employee accounts Add, edit, and delete employees from your HSA plan Schedule contributions to your employees’ accounts View your transaction history Employee reports Generate reports for insight into employee account balances and product usage Dedicated employer services Dedicated to helping meet your needs Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Account Services FDIC insured Visa® Debit Card
Interest-bearing FDIC insured account Visa® Debit Card Can be used at the point of service or when bills are received PayChoice™ payment platform Proprietary bill pay system Manage account information See real-time balances Get reimbursements Make payments Schedule payments in advance Set up electronic funds transfers Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Account Services Cont. Investments Lifetime claims vault
Free investment options with no fees Minimum requirement balance of $2,000 Lifetime claims vault Permanent record keeping of claims and spending detail. Save the money until retirement, and then “reimburse” themselves tax free! Monthly statements and tax documents Members will receive monthly statements and the appropriate tax documents they need to report their HSA to the IRS Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Member Services Available 24/7/365
Help find safe, effective ways to save on healthcare in real-time Price comparisons for treatment options, including average costs by ZIP code and costs of in vs. out of network Help negotiate payment schedule with a provider, if account underfunded Get: Tax tips Account balance inquiries Reimbursement requests by phone if wanted Also access online tools and information on medical and prescription costs Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Sample Costs Predicted Enrollment Set Up Account Fees
Monthly Account Fee Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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Additional Pricing and Fees
Description of Fee Charge Debit Card Each account comes with 1 free debit card. Additional cards may be purchased by your employees $5 Reimbursement by Check Employees may choose to receive reimbursements from their account by EFT, which is free, or through a check in the mail for a small processing fee $2 Insufficient Funds This fee is charged when the account has insufficient funds to cover a check $25 Closed Account Charged at account closure. It can be paid by the employer or employee Confidential and proprietary. Reproduction without express written consent is prohibited. Copyright © 2010 by HealthEquity, Inc. All rights reserved.
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