Download - Msaver & Hsa Basics1
Copyright 2008 First Horizon Msaver, Inc.
First Horizon Msaver First Horizon Msaver Overview &Overview &HSA BasicsHSA Basics
Session 1
Copyright 2008 First Horizon Msaver, Inc.
– Brief History of First Horizon Msaver
– Health Savings Accounts Basics:
• The relationship of HSAs to High-Deductible Health Plans (HDHP)
• IRS contribution guidelines• HSA market snapshot
Today
Copyright 2008 First Horizon Msaver, Inc.
March 1864 Memphis, TN- post civil war City economy at a standstill No Financial Infrastructure Frank S. Davis founds First
National Bank of Memphis Monthly building rent in
March, 1864: $75
Company Beginnings
Copyright 2008 First Horizon Msaver, Inc.
Who is First Horizon Msaver?
A Free-Standing HSA Administrator, working with any Carrier with qualified HDHP’s
Pioneer in consumer driven healthcare since 1997
First to Market in MSA Administration
First to market in HSA Administration
Recognized within the industry for executive leadership and innovation
Exclusive provider of HSA’s to:American Medical Insurance Agency Inc.ADA Member Advantage
Purchased by First Horizon National Corporation April 1, 2005
Copyright 2008 First Horizon Msaver, Inc.
Who is First Horizon Msaver?
Copyright 2008 First Horizon Msaver, Inc.
What is an HSA?
Federally authorized, tax favored savings account.
Tax-free savings to pay for healthcare expenses.
Available to any size group.
For HSA contributions, presence of a qualified high deductible medical plan (IRS minimums) $1,100 Single $2,200 Family
HSA Contribution Limits (’08) Single: $2,900 Family: $5,800
Copyright 2008 First Horizon Msaver, Inc.
How Does it Work?
Health SavingsHealth SavingsAccount PlanAccount Plan
High Deductible High Deductible InsuranceInsurance
Savings Savings AccountAccount
Protects YouProtects YouFrom Big From Big
Medical Claims Medical Claims
Helps Pay Helps Pay Your DeductibleYour Deductible
Tax-Tax-Deductible DepositsDeductible Deposits Interest Income Interest Income
Tax FreeTax FreeTax Free Tax Free
For Medical CareFor Medical Care
Copyright 2008 First Horizon Msaver, Inc.
HSA Market In 2008, about 7 million Americans are expected to be covered
by an HDHP with an HSA 37% Previously Uninsured 40% Make Less Than $50,000 a year 53% Families with Children 57% Over Age of 40 92% Had funds rollover to the next year
The market size is to predicted to be 14 million participants according to Bearing Point and 15 million according to the Treasury Department by 2010.
By 2012, some 70 million Americans are expected to be participating in at least one of three financial CDH plans—HSA’s, flexible spending accounts (FSA’s) or health reimbursement accounts (HRA’s)—for a total of 40 million estimated accounts, which are projected to put total assets at over $60 billion by 2010.
Copyright 2008 First Horizon Msaver, Inc.
“Consumer-Driven” Healthcare
Why are HSA’s with HDHP’s growing in popularity?
Introduces people to the actual cost of medical care
Encourages shrewder purchases of medical services, diagnostic tests and prescription drugs
Helps hold down the rising cost of health insurance
Copyright 2008 First Horizon Msaver, Inc.
What does an IRS HSA Qualified High Deductible Health Plan look like this year?
Individual Coverage Minimum deductible of $1,100 Maximum out-of-pocket expense
of $5600 Family Coverage
Minimum deductible of $2,200 Maximum out-of-pocket of
$11,200
Copyright 2008 First Horizon Msaver, Inc.
HSA’s - Choice & SavingsIn the traditional health care coverage
approach: Individual buys a standard health
insurance plan Once premium dollars are spent,
regardless of utilization, they are gone forever
There is no opportunity for premium savings or tax savings
Copyright 2008 First Horizon Msaver, Inc.
HSA’s - Choice & Savings
HSA: Health Savings Account An HSA is an individual tax-exempt
account set up in conjunction with an IRS approved High-Deductible Health Plan
It is designed to pay for any qualified medical expenses and/or to provide savings for the future
Non-eligible expenses are taxed at a 10% penalty and claimed as income
Copyright 2008 First Horizon Msaver, Inc.
HSA Eligible Individuals:
Must have an HDHP in place Not enrolled in Medicare Cannot be claimed as a dependent
on another’s income tax return Have not used VA benefits for past
90 days
Copyright 2008 First Horizon Msaver, Inc.
Contributions
• Who may contribute?– Anyone may make a contribution
on behalf of any eligible individual– Eligibility to contribute to HSA is
determined by effective date of HDHP
– The full year’s allowable contribution amount may be placed into the account regardless of which month the HDHP becomes effective
Copyright 2008 First Horizon Msaver, Inc.
May qualified HDHP planshave co-payments?
• Preventative Care– HDHP can have co-pay for preventative care– Safe harbor list of preventative care
• Periodic health evaluations (e.g., physicals)• Screenings (mammograms)• Routine pre-natal and well-child care• Tobacco cessation programs• Obesity weight loss programs• Certain drugs & medication• Treatment of related condition during procedure
if it would be unreasonable or impracticable to perform another procedure to treat condition
Copyright 2008 First Horizon Msaver, Inc.
How can prescriptions work with HDHPs?
• If a plan has prescription drug benefits, – HDHP must apply cost of
prescription drug toward annual deductible or person may not contribute to HSA
– Prescription riders not permitted
– Prescription discount cards are permitted
Copyright 2008 First Horizon Msaver, Inc.
HSA Eligible Individuals • May not be covered by any other
insurance except what is permitted– Specific disease or illness– Hospital Daily Income– Accident– Dental– Disability– Qualified Long-Term Care– Vision– Liabilities incurred under workers’ comp,
tort, relating to ownership or use of property
Copyright 2008 First Horizon Msaver, Inc.
Quick Review:
Who may establish a Health Savings Account?
How much may one contribute?
What happens at HSA $ upon retirement?
Any qualified individual with a qualified HDHP
$2,900 (individual) or $5,800 (family)
HSA $ may be spent tax free for medical, just like before, or may be used for anything and taxed at the regular tax rate without penalty.
Copyright 2008 First Horizon Msaver, Inc.
Next Steps & Sessions– Send email to [email protected] to receive credit for today’s session and be eligible for prizes!
–Future Sessions:
Session 2- HSA enrollment process and options- Broker compensations and promotions- Employer funding options
Session 3- Firsthorizonmsaver.com site review- Continuing education
Session 4- HSA Administrator Competitor Pricing- Why First Horizon Msaver Investments