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Health Savings Accounts (HSAs) This presentation will probably involve audience discussion, which will create action items. Use PowerPoint to keep track.

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Presentation on theme: "Health Savings Accounts (HSAs) This presentation will probably involve audience discussion, which will create action items. Use PowerPoint to keep track."— Presentation transcript:

1 Health Savings Accounts (HSAs) This presentation will probably involve audience discussion, which will create action items. Use PowerPoint to keep track of these action items during your presentation In Slide Show, click on the right mouse button Select “Meeting Minder” Select the “Action Items” tab Type in action items as they come up Click OK to dismiss this box This will automatically create an Action Item slide at the end of your presentation with your points entered.

2 Consumer Directed Plans Develop Appreciation for Cost of Services The Advantage is: – You are reducing your premium, and taking control of the rest Flexibility The Future of Healthcare is NOW! Support Services Alliance, Inc.

3 Main Objective of HSAs Reduce Fixed Premium Increase Possible Expense Support Services Alliance, Inc. You only pay for services when you actually use the service!

4 Definition Deductible is the amount of money paid out of pocket before the insurance is used. Support Services Alliance, Inc.

5 Health Insurance XL2250H Employee pays 100% of all medical expenses before the deductible Policy pays 100% of all medical expenses after the deductible Individual $0$0 2-Person Family $0$0 $ 2,250 $ 4,500 Unlimited EE pays 100%Insurance pays 100%

6 Family Deductible HSA deductibles are aggregate Aggregate deductible is twice the individual deductible, and must be met before charges are paid by the insurance carrier Individual DeductibleFamily Aggregate $2,250 $4,500 Support Services Alliance, Inc.

7 Health Insurance Deductible covers –Physician’s visits & Services –Inpatient Hospital Services –Outpatient Hospital Services –Prescription Drugs –(*Detailed list on XL2250H brochure) No Deductible required –Well child visits and routine immunizations for children up to age 19 Support Services Alliance, Inc.

8 Health Insurance Specifics NO REFERRALS EVER Underwritten by Univera Healthcare Dependents covered until December 31 st of the year they turn 23 Support Services Alliance, Inc.

9 Health Insurance Freedom of Choice –In & Out of Network Providers –WNY – Univera –CNY – Excellus BlueCross BlueShield –Outside NYS – Beech Street Network Best way to find doctor/hospital –Smallbizgrowth.com –Then click “Find a Provider” Support Services Alliance, Inc.

10 2 Separate Parts High-deductible health insurance plans Savings Account Health InsuranceSavings Account HSA-eligible high-deductible health plans with benefits such as: -Freedom of choice of physicians and hospitals -Physician’s services -Inpatient hospital services -Outpatient hospital services -Prescriptions Can be used for all of the deductible expenses and coinsurance (if necessary) under medical, as well as: -Dental -Vision -Over-the-counter medication -Long-term care premiums -Long-term care expenses -Annual physical Support Services Alliance, Inc.

11 Tax Treatment of Contributions Employer contributions –Contributions made by the Employer are NON-taxable to the employee Employee contributions –May be an above the line deduction on form 1040 of federal income tax return or –Pre-tax deduction out of paycheck Support Services Alliance, Inc.

12 Accumulations Interest earned in Savings account is tax-deferred –No maximum limit on account balance NOT a “use it or lose it” account Can always be used for out-of-pocket medical costs. Account is 100% owned by the employee. –If the employee leaves their job, the account and the money in the account remains with the employee. Support Services Alliance, Inc.

13 Withdrawals Withdrawals made for qualified medical expenses are tax free Non-qualified expenses subject to 10% penalty plus taxes (penalty is waived for death or disability) Non-qualified withdrawals for individuals age 65 and above are subject to income tax only Accurate record keeping is employee’s responsibility –If audited, employee is responsible to prove withdrawals were qualified Support Services Alliance, Inc.

14 Claims In-Network: You Pay a Reduced Rate –Doctors, hospitals, testing, etc. –Pharmacy Claim Procedure –MD or Hospital – “Run the Claim” –Pharmacy – Use Debit Card or Check Support Services Alliance, Inc.

15 Office Visit You go to the doctor and show your card but DON'T PAY ANY CO-PAY Doctor sends claim to Univera Univera tells the doctor the negotiated rate to charge the client Doctor sends client the bill, Univera sends EOB to client Client pays the doctor. If there is money in the HSA you can use that money to pay the doctor. Support Services Alliance, Inc.

16 Prescription Drug You go to the Pharmacy and show your Insurance card If you haven’t reached your deductible you pay the full negotiated rate to the pharmacy If there is money in the HSA you can use that money to pay the Pharmacy. Support Services Alliance, Inc.

17 How Will a HSA Save Me $$$ Low Utilizing Person Normal Utilizing Person High Utilizing Person Support Services Alliance, Inc.

18 Low Utilizer Support Services Alliance, Inc. Current PlanHDF Premium$230/month$144/month Annualized$2,760$1,728 1 Dr. Visit$10$100 Actual Cost$2,770$1,828 SAVINGS$942 Example of Healthy Person

19 Normal Utilizer Support Services Alliance, Inc. Current PlanHDF Premium$230/month$144/month Annualized$2,760$1,728 2 Dr. Visit$20$200 1 Script$120$360 Actual Cost$2,990$2,288 SAVINGS$612 Example of Normal Person

20 High Utilizer Support Services Alliance, Inc. Current PlanHDF Premium$230/month$144/month Annualized$2,760$1, Dr. Visit$120$1,200 8 Scripts$2,400$1,050 Actual Cost$5,280$3,978 SAVINGS$1,302 Example of Very Ill Person 10 co-pay Avg. co-pay $25Maxed out

21 You May Use Funds For: OTC Drugs Dental Vision Portion of Long-Term Care Premiums These Expenses WILL NOT Reduce Your Deductible You Are Not Required to Use HSA Funds Support Services Alliance, Inc.

22 This presentation will probably involve audience discussion, which will create action items. Use PowerPoint to keep track of these action items during your presentation In Slide Show, click on the right mouse button Select “Meeting Minder” Select the “Action Items” tab Type in action items as they come up Click OK to dismiss this box This will automatically create an Action Item slide at the end of your presentation with your points entered.


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