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The Health Savings Account (HSA) NIA/Combined presents:

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Presentation on theme: "The Health Savings Account (HSA) NIA/Combined presents:"— Presentation transcript:

1 The Health Savings Account (HSA) NIA/Combined presents:

2 About Assurant Health U.S. individual medical market leader In business over 110 years More than 1,000,000 customers 1 1 Assurant Health is the brand name for products underwritten and issued by Time Insurance Company.

3 Assurant Healthan HSA leader At the forefront of HSA legislation Sold the first HSA Expert in account administration Offers one of the only custodial accounts in the country providing seamless administration option with no fees

4 What is an HSA? Tax-sheltered savings account Allows for the accumulation of funds to pay for qualified current and future health care expenses Paired with a qualified high deductible health insurance plan Together, the high deductible plan and HSA provide: Premium savings Tax advantages Investment opportunities

5 Huge new opportunity HSAs are: Tax free Flexible Permanent Portable Assurant Health makes HSAs simple and easy

6 How big is the HSA market? Congressional analysts estimate up to 40 million accounts will be created over the next 10 years Everyone 2 with a qualified high deductible plan is eligible HSAs make high deductible medical plans more attractive and easier to sell than ever before 2 To be eligible, the qualified high deductible health plan must be the clients only major medical coverage.

7 Federal guidelines Annual contribution limits for 2006 are the lesser of: 1) The deductible or 2) $2,700 (individual) / $5,450 (family) Individuals 55 and over are allowed to contribute an additional $700 for 2006 Unused MSA plan funds may be rolled over into an HSA without penalty No first-dollar benefits except for wellness

8 HSA deductibles SingleFamily Maximum Out-of-Pocket$5,250$10,500 Assurant Health Deductibles $1,100$2,200 $1,600$3,200 $2,100$4,200 $2,700$5,400 $5,000$10,000

9 Family deductibles What is a common family deductible? A common family deductible refers to the accumulation of all medical expenses for all covered persons to meet a single deductible

10 HSA advantages Funds are contributed tax free Funds gain interest tax free Withdrawals for qualified medical expenses are tax free Funds can be withdrawn at age 65 for other purposes without penaltyonly ordinary income tax applies (A 10% penalty plus ordinary income tax applies if funds are withdrawn before age 65 for non-medical expenses)

11 Eligible expenses Qualified withdrawals: Eligible medical expenses as defined under Section 213 (d) of the IRS code Medically necessary services Deductibles and coinsurance Vision correction Dental expenses Non-prescription drugs Qualified long-term care premiums COBRA continuation premiums Premiums while unemployed Medicare Part A, B and D premiums (not Medicare supplemental premiums)

12 Cost comparison scenario Family coverage (husband and wife are 37 years old, have two children) 28% federal tax bracket Living in metropolitan area $1,500 in claims

13 Typical Family Plan Three times single deductible = $1,000 Assurant Health HSA Plan Common family deductible = $5,400 Coinsurance:80%/20%100% Premium paid:$8225$4,506 Insureds share of health care expenses: ($1,500 claim) $1,000 for deductibles, $100 for coinsurance, $550 for dental/eyewear expenses +$1,650 $1,500 for deductible and $550 for dental/eyewear expenses +$2,050 Expenses subtotal:$9,875$6,556 Tax savings on HSA deposits:$0$1,512 Net expenses: (out-of-pocket minus tax savings) $9,875$5,044 Total net savings with HSA Plan:$4,831 HSA Balance $3,350 Cost comparison

14 HSA administration options HSA Fundamentals feeless, seamless administration HSA Tools enhanced administration

15 HSA Fundamentals feeless, seamless administration No administrative, setup or user fees Competitive interest rates Optional automatic claims payment Several contribution options Monthly, quarterly, semi-annual, annual

16 HSA Tools enhanced administration option VISA debit card Simple, comprehensive online features Competitive interest rates All for only $3.95 per month Fee not applicable in AZ, GA and NC

17 Money withdrawal methods HSA Fundamentals Automatic disbursement method Manual disbursement method Assurant Health HSA Tools VISA debit card

18 Clients save premium, reduce taxes and build savings Unused funds accumulate from year to year Use the money to pay for qualified medical expenses tax free as they occur Save money tax free for future medical expenses Accrue savings and build a tax-sheltered fund for other expenses in retirement

19 Get a jump on the competition Since everyone with a qualified high deductible medical plan is eligible, these accounts will be in big demand Dont lose a sale to a competitor because you dont offer them Assurant Health has a market leadership position Your HSA experts at Assurant Health are ready to assist you

20 Want more information? For more information or to obtain additional HSA sales materials, see

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