HSAs: Do the Math Eric Johnson Regional Sales Manager, First Horizon Msaver 817-366-7536 cell | [email protected]
HSAs: Do the Math Eric Johnson Regional Sales Manager, First Horizon Msaver 817-366-7536 cell | [email protected].
Mar 26, 2015
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HSAs: Do the Math
Eric JohnsonRegional Sales Manager, First Horizon Msaver
817-366-7536 cell | [email protected]
• Please sign in & out and include your license #• Please don’t leave early• Course Name: HSAs: Do the Math!• Course Number: 37904• Provider: Agent Allies, LLC• Provider Number: 3626
This course has been approved by the Insurance Continuing Education Committee as New Mexico Insurance Continuing Education Course Number 37904 for 1 hour of credit.
1 Hour CE Credit New Mexico
Art or Science?
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
When you lead with science…
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Step 1: Get their attention
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Lead with the Art!
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Do the Math!
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Copay vs. HSA
$3k deductible 100% Copay Plan
$3k deductible 100% HDHP
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Plan Design – No Copays
$3,000 Deductible
100% coverage after deductible
Dr: $30
Rx: $10 / $40 / $60
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Plan Design – No Copays
$3,000 Deductible
100% coverage after deductible
Dr: Negotiated rate / deduct.
Rx: Negotiated rate / deduct.
HSA
$3,000 Deductible
100% coverage after deductible
Dr: $30
Rx: $10 / $40 / $60
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Plan Design – No Copays
$3,000 Deductible
100% coverage after deductible
Dr: $30
Rx: $10 / $40 / $60
Monthly: $347
Yearly: $4,164
$3,000 Deductible
100% coverage after deductible
Dr: Negotiated rate / deduct.
Rx: Negotiated rate / deduct.
Monthly: $297
Yearly: $3,564
COPAY HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Premium Savings – Put in HSA
$3,000 Deductible
100% coverage after deductible
Dr: $30
Rx: $10 / $40 / $60
Monthly: $347
Yearly: $4,164
$3,000 Deductible
100% coverage after deductible
Dr: Negotiated rate / deduct.
Rx: Negotiated rate / deduct.
Monthly: $297
Yearly: $3,564
COPAY HSA
$600/year
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
What’s the Risk?
$3,000 Deductible
Doctor copays
Prescription copays
(all paid with after tax dollars)
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
What’s the Risk?
$3,000 Deductible
Doctor copays
Prescription copays
(all paid with after tax dollars)
$3,000 Deductible
$600 deposited in HSA
$2,400 Total Exposure
(all paid with pre-tax dollars)
COPAY HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Example 1
Low Utilizer
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Low Utilizer
Annual physical: $0
No other doctor visits or prescriptions
No refund from insurance company
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Low Utilizer
Annual physical: $0
No other doctor visits or prescriptions
$600 in HSA to use for dental, vision, or future
medical expenses
HSA
Annual physical: $0
No other doctor visits or prescriptions
No refund from insurance company
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Qualified Medical Expenses
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Great R.O.I. for Employers
Employers will get their money’s worth
Low Utilizers will appreciate their benefits
Employees will be happier
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
The Winner and New Champion
HSA
COPAY
HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Example 2
Medium Utilizer
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Medium Utilizer
Annual physical: $0 Annual physical: $0
COPAY HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Medium Utilizer
Annual physical: $0
2 sick visits: $60
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Medium Utilizer
Annual physical: $0
2 sick visits: ???
HSA
Annual physical: $0
2 sick visits: $60
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Price Transparency Tools
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
www.FirstHorizonMsaver.com
Price Transparency Tools
Office Visit, Established Patient, Level 2 (zip code 32807)Minor problem requiring a limited exam and treatment – approximately 10 minutes with the doctor
$70
Office Visit, Established Patient, Level 3 (zip code 32807)Moderate problem requiring counseling and treatment, may require coordination of care with other providers – approximately 15 minutes with the doctor
$113HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Medium Utilizer
Annual physical: $0
2 sick visits: $60
Annual physical: $0
COPAY HSA
2 sick visits: $226
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Medium Utilizer
Annual physical: $0
2 sick visits: $60
Synthroid ($10) $120
Atenolol ($8) $96
Lipitor ($60) $720
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Medium Utilizer
Annual physical: $0
2 sick visits: $60
Synthroid ($10) $120
Atenolol ($8) $96
Lipitor ($60) $720
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Annual physical: $0
2 sick visits: $226
Synthroid
Atenolol
Lipitor
HSA
?
Price Transparency Tools
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
www.MyFloridaRx.com
Price Transparency Tools
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
www.FirstHorizonMsaver.com
Price Transparency Tools
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
www.Humana.com
Synthroid (100 MCG)
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
$26.09 $20.35
$20.35
$20.74
$22.83
$20.79
$18.24
Atenolol (100 MG)
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Not Listed $6.07
$6.07
$8.99
$10.49
$6.32
$7.65
Lipitor (10 MG)
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Not Listed $95.27
$95.27
$97.41
$99.95
$96.59
$88.80
Medium Utilizer
Annual physical: $0
2 sick visits: $60
Synthroid ($10) $120
Atenolol ($8) $96
Lipitor ($60) $720
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Annual physical: $0
2 sick visits: $226
Synthroid ($18) $216
Atenolol ($8) $96
Lipitor ($89) $1,068
HSA
Medium Utilizer
Annual physical: $0
2 sick visits: $60
Synthroid ($10) $120
Atenolol ($8) $96
Lipitor ($60) $720
Total $996
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Annual physical: $0
2 sick visits: $226
Synthroid ($18) $216
Atenolol ($8) $96
Lipitor ($89) $1,068
Total $1,606
HSA
Medium Utilizer
Total: $996
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Total: $1,606
minus HSA: $ 600
HSA
Medium Utilizer
Total: $996
Total (after tax): $996
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Total: $1,606
minus HSA: $ 600
Total: $1,006
HSA
Federal Income Tax Brackets 2010
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Tax Rate Most Single Filers Married Couples Filing Jointly
10% Not over $8,375 Not over $16,750
15% $8,375 – $34,000 $16,750 – $68,000
25% $34,000 – $82,400 $68,000 – $137,300
28% $82,400 – $171,850 $137,300 – $209,250
33% $171,850 – $373,650 $209,250 – $373,650
35% Over $373,650 Over $373,650
Medium Utilizer
Total: $996
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Total: $1,606
minus HSA: $600
minus Tax Savings $400 (25%)
HSA
FICA Tax Rate 2010
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
6.2% of first $106,800
1.45% with no limit
7.65% matched by employerTOTAL
Texas Sales Tax Holiday
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Medium Utilizer
Total: $996
Total (after tax): $996
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Total: $1,606
minus HSA: $600
minus Tax Savings $400 (25%)
Total: $606
HSA
Medium Utilizer
Total: $996
Total (after tax): $996
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Total: $1,606
minus HSA: $600
minus Tax Savings $400 (25%)
Total: $606
Savings vs. Copay: $390
HSA
Medium Utilizer
Total: $996
Total (after tax): $996
Remaining Risk: $3,000 + add’l copays
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Total: $1,606
minus HSA: $600
minus Tax Savings $400 (25%)
Total: $606
Savings vs. Copay: $390
Remaining Risk: $1,394
HSA
The Winner and Still Champion
HSA
COPAY
HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Example 3
High Utilizer
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
High Utilizer
Annual physical: $0
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
High Utilizer
Annual physical: $0
4 sick visits: $120
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
High Utilizer
Annual physical: $0
4 sick visits: $120
1 Generic ($10) $120
1 Brand ($40) $480
1 Non-Form. ($60) $720
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
High Utilizer
Annual physical: $0
4 sick visits: $120
1 Generic ($10) $120
1 Brand ($40) $480
1 Non-Form. ($60) $720
1 Hospital Visit: $3,000
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
High Utilizer
Annual physical: $0
4 sick visits: $120
1 Generic ($10) $120
1 Brand ($40) $480
1 Non-Form. ($60) $720
1 Hospital Visit: $3,000
Total: $4,440
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
High Utilizer
Annual physical: $0
4 sick visits: $120
1 Generic ($10) $120
1 Brand ($40) $480
1 Non-Form. ($60) $720
1 Hospital Visit: $3,000
Total: $4,440
Deductible: $3,000
COPAY HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
High Utilizer
Total: $4,440
Deductible: $3000
minus HSA: $600
COPAY HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
High Utilizer
Total: $4,440
Deductible: $3000
minus HSA: $600
minus tax savings: $750
COPAY HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
High Utilizer
Total: $4,440
Total (after tax): $4,440
Deductible: $3,000
minus HSA: $600
minus tax savings: $750
Total (after tax): $1,650
COPAY HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
High Utilizer
Total: $4,440
Total (after tax): $4,440
Deductible: $3,000
minus HSA: $600
minus tax savings: $750
Total (after tax): $1,650
Savings: $2,790
COPAY HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
High Utilizer
Total: $4,440
Total (after tax): $4,440
Remaining Risk: Copays
Deductible: $3,000
minus HSA: $600
minus tax savings: $750
Total (after tax): $1,650
Savings: $2,790
COPAY HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
High Utilizer
Annual physical: $0
6 sick visits: $180
2 Generic ($10) $240
2 Brand ($40) $960
2 Non-Form. ($60) $1,440
1 Hospital Visit: $3,000
Total: $5,820
COPAY
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
High Utilizer
Total: $5,820
Total (after tax): $5,820
Deductible: $3,000
minus HSA: $600
minus tax savings: $750
Total (after tax): $1,650
Savings: $4,170
COPAY HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
High Utilizer
Total: $5,820
Total (after tax): $5,820
Remaining Risk: Copays
Deductible: $3,000
minus HSA: $600
minus tax savings: $750
Total (after tax): $1,650
Savings: $4,170
Remaining Risk: $0
COPAY HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Knockout!
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
The Undisputed Champion
HSA
COPAY
HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
This is the money you could be saving by switching to an HSA
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Note: You could also save this money by switching to Geico.
Dual Option
Choice is an important part of consumerism
At renewal, employees will do the selling
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
The Science of HSAs
HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.
Frequently Asked Questions
www.treas.gov/offices/public-affairs/hsa/faq.shtml
(The remaining slides all come from the above link.)
HSA s: Frequently Asked Questions | Copyright 2010 Eric Johnson
Questions?
HSA s: Frequently Asked Questions | Copyright 2010 Eric Johnson
Thank You!!!
HSA s: Frequently Asked Questions | Copyright 2010 Eric Johnson
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