copyright 2010 first horizon msaver, inc. agenda what is an hsa? elements of consumerism hsa...
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Copyright 2010 First Horizon Msaver, Inc.
AGENDA
What is an HSA?
Elements of Consumerism
HSA Examples – Do the Math
Resources
Studies – HSAs are working!
HSA Usage Trends
Health Reform and CDHPs
Connect with
Eric on Linked In
!
www.linkedin.com/in
/ericjohnson262
817-366-7536
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Do the Math!Do the Math!
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Copay vs. HSA
$3k deductible 100% Copay Plan
$3k deductible 100% HDHP
Copyright 2010 First Horizon Msaver, Inc.
Plan Design – No Copays
$3,000 Deductible
100% coverage after deductible
Dr: $30
Rx: $10 / $40 / $60
COPAY
Copyright 2010 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
Copyright 2010 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
Copyright 2010 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
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What’s the Risk?
$3,000 Deductible
Doctor copays
Prescription copays
(all paid with after tax dollars)
COPAY
Copyright 2010 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
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Example 1
Low Utilizer
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Low Utilizer
Annual physical: $0
No other doctor visits or prescriptions
No refund from insurance company
COPAY
Copyright 2010 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
Copyright 2010 First Horizon Msaver, Inc.
Qualified Medical Expenses
Until
1/1/11
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Great R.O.I. for Employers
Employers will get their money’s worth
Low Utilizers will appreciate their benefits
Employees will be happier
Copyright 2010 First Horizon Msaver, Inc.
The Winner and New Champion
HSA
COPAY
HSA
Copyright 2010 First Horizon Msaver, Inc.
Example 2
Medium Utilizer
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Medium Utilizer
Annual physical: $0 Annual physical: $0
COPAY HSA
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Medium Utilizer
Annual physical: $0
2 sick visits: $60
COPAY
Copyright 2010 First Horizon Msaver, Inc.
Medium Utilizer
Annual physical: $0
2 sick visits: ???
HSA
Annual physical: $0
2 sick visits: $60
COPAY
Copyright 2010 First Horizon Msaver, Inc.
Price Transparency Tools
www.FirstHorizonMsaver.com
Copyright 2010 First Horizon Msaver, Inc.
Price Transparency Tools
Office Visit, Established Patient, Level 2 (zip code 76012)Minor problem requiring a limited exam and treatment – approximately 10 minutes with the doctor
$70
Office Visit, Established Patient, Level 3 (zip code 76012)Moderate problem requiring counseling and treatment, may require coordination of care with other providers – approximately 15 minutes with the doctor
$113
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Medium Utilizer
Annual physical: $0
2 sick visits: $60
Annual physical: $0
COPAY HSA
2 sick visits: $226
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Medium Utilizer
Annual physical: $0
2 sick visits: $60
Synthroid ($10) $120
Lipitor ($60) $720
COPAY
Copyright 2010 First Horizon Msaver, Inc.
Medium Utilizer
Annual physical: $0
2 sick visits: $60
Synthroid ($10) $120
Lipitor ($60) $720
COPAY
Annual physical: $0
2 sick visits: $226
Synthroid
Lipitor
HSA
?
Copyright 2010 First Horizon Msaver, Inc.
Price Transparency Tools
www.FirstHorizonMsaver.com
Copyright 2010 First Horizon Msaver, Inc.
Synthroid (100 MCG)
$26.09 $20.35
$20.35
$20.74
$22.83
$20.79
$18.24
MyFloridaRx.com
Insurance Insurance CompanyCompany
Copyright 2010 First Horizon Msaver, Inc.
Lipitor (10 MG)
Not Listed $95.27
$95.27
$97.41
$99.95
$96.59
$88.80
Insurance Insurance CompanyCompany
Copyright 2010 First Horizon Msaver, Inc.
Medium Utilizer
Annual physical: $0
2 sick visits: $60
Synthroid ($10) $120
Lipitor ($60) $720
COPAY
Annual physical: $0
2 sick visits: $226
Synthroid ($18) $216
Lipitor ($89) $1,068
HSA
Copyright 2010 First Horizon Msaver, Inc.
Medium Utilizer
Annual physical: $0
2 sick visits: $60
Synthroid ($10) $120
Lipitor ($60) $720
Total $900
COPAY
Annual physical: $0
2 sick visits: $226
Synthroid ($18) $216
Lipitor ($89) $1,068
Total $1,510
HSA
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Medium Utilizer
Total: $900
COPAY
Total: $1,510
minus HSA: $ 600
HSA
Copyright 2010 First Horizon Msaver, Inc.
Medium Utilizer
Total: $900
Total (after tax): $900
COPAY
Total: $1,510
minus HSA: $ 600
Total: $ 910
HSA
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Federal Income Tax Brackets 2010
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
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Medium Utilizer
Total: $900
COPAY
Total: $1,510
minus HSA: $600
minus Tax Savings $378 (25%)
HSA
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FICA Tax Rate 2010
6.2% of first $106,800
1.45% with no limit
7.65% matched by employerTOTAL
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Texas Sales Tax Holiday
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Copyright 2010 First Horizon Msaver, Inc.
Medium Utilizer
Total: $900
Total (after tax): $900
COPAY
Total: $1,510
minus HSA: $600
minus Tax Savings $378 (25%)
Total: $532
HSA
Copyright 2010 First Horizon Msaver, Inc.
Medium Utilizer
Total: $900
Total (after tax): $900
COPAY
Total: $1,510
minus HSA: $600
minus Tax Savings $378 (25%)
Total: $532
Savings vs. Copay: $368
HSA
Copyright 2010 First Horizon Msaver, Inc.
Medium Utilizer
Total: $900
Total (after tax): $900
Remaining Risk: $3,000 + add’l copays
COPAY
Total: $1,510
minus HSA: $600
minus Tax Savings $378 (25%)
Total: $532
Savings vs. Copay: $368
Remaining Risk: $1,490
HSA
Copyright 2010 First Horizon Msaver, Inc.
The Winner and Still Champion
HSA
COPAY
HSA
Copyright 2010 First Horizon Msaver, Inc.
Example 3
High Utilizer
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High Utilizer
Annual physical: $0
COPAY
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High Utilizer
Annual physical: $0
4 sick visits: $120
COPAY
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High Utilizer
Annual physical: $0
4 sick visits: $120
1 Generic ($10) $120
1 Brand ($40) $480
1 Non-Form. ($60) $720
COPAY
Copyright 2010 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
Copyright 2010 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
Copyright 2010 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
Copyright 2010 First Horizon Msaver, Inc.
High Utilizer
Total: $4,440
Deductible: $3000
minus HSA: $600
COPAY HSA
Copyright 2010 First Horizon Msaver, Inc.
High Utilizer
Total: $4,440
Deductible: $3000
minus HSA: $600
minus tax savings: $750
COPAY HSA
Copyright 2010 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
Copyright 2010 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
Copyright 2010 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
Copyright 2010 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
Copyright 2010 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
Copyright 2010 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
Copyright 2010 First Horizon Msaver, Inc.
Knockout!
Copyright 2010 First Horizon Msaver, Inc.
The Undisputed Champion
HSA
COPAY
HSA
Copyright 2010 First Horizon Msaver, Inc.
Dual Option
Choice is an important part of consumerism
At renewal, employees will do the selling