introducing our new hdhp/hsa option
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Introducing our new HDHP/HSA option. Today’s Presentation. What is an HDHP/HSA program? Why is the company offering an HDHP/HSA program? How do HDHP/HSA programs work? How does my HSA work? How do I get the most from my HDHP/HSA program? How do I enroll in my HDHP/HSA program?. - PowerPoint PPT PresentationTRANSCRIPT
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Introducing our newHDHP/HSA option
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Today’s Presentation
• What is an HDHP/HSA program?• Why is the company offering an
HDHP/HSA program?• How do HDHP/HSA programs work?• How does my HSA work?• How do I get the most from my HDHP/HSA
program?• How do I enroll in my HDHP/HSA program?
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What is an HDHP/HSA?
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Your HDHP/HSA Program
• A qualified High Deductible Health Plan (HDHP) combined with a Health Savings Account (HSA)
• Created as part of the Medicare Modernization Act of 2003
• Part of the fast-growing Consumer-Directed Healthcare (CDH) trend
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Why is the company offeringan HDHP/HSA program?
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Rising Cost of Health InsuranceHDHPs May Have Lower Premium CostsSample difference in premium costs in 2014.
Estimated average annual premium of $4,949 for HDHP individual coverage and $14,514 for HDHP family coverage. vs. $6,212 for non-HDHP individual coverage and $17,204 for non-HDHP family coverage.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2014. Chart compiled by Finity Communications.
$4,949$6,212
$14,514
$17,204
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
HDHP Non-HDHP
Individual Family
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Creating a Sustainable Healthcare Program
• Consumer-Directed Healthcare programs may be more sustainable
• CDH programs are designed to:• Provide lower premiums• Emphasize the importance of preventive care• Motivate healthy lifestyles• Encourage health consumerism
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How do HDHP/HSA programs work?
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HDHP + HSA + Wellness Program
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How Your HDHP/HSA Works
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HDHP/HSA Programs Provide Choice
• HSA dollars can be used to pay for any IRS-qualified medical expense
• Medical expenses must be primarily for the alleviation or prevention of a physical or mental illness
• Your HDHP provides details about which medical expenses will count toward your deductible
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How does my HDHP work?
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High Deductible Health Plan (HDHP)
• A health plan offered by your employer• HDHPs typically have higher deductibles and
lower premiums than traditional health insurance plans
• You pay for most healthcare costs until the deductible is reached
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Your High Deductible Health Plan (HDHP)
• Minimum annual deductible
• Maximum annual out-of-pocket
Coverage Type 2015 2016
Self-Only $1,300 $1,300
Family $2,600 $2,600
Coverage Type 2015 2016
Self-Only $6,450 $6,550
Family $12,900 $13,100
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Your High Deductible Health Plan (HDHP)
• After the deductible, the HDHP begins to pay for covered benefits
• Certain basic preventive care is covered before the deductible is reached
• Other features of your HDHP• Finding out more about your HDHP
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How does my HSA work?
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Your Health Savings Account (HSA)
• You must be enrolled in an HDHP to be eligible for a Health Savings Account
• An HSA is a tax-advantaged account that can be used to pay for IRS-qualified medical expenses
• No “use it or lose it” provisions• Your money is always yours• You can use funds for current or future medical
expenses
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HSA Benefits
• More employee control• Choice of healthcare services • Tax advantages• Money rolls over each year• Portability if you leave the company
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HSAs Put You in Control
• Higher deductible generally means
lower premium costs than traditional
health insurance plans• You can put money into your HSA to pay for
medical expenses before your deductible is reached
• Money you don’t use is yours and rolls over each year
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HSA Federal Tax Advantages
State taxes may vary.
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Your HSA Balance Rolls Over
• There are no “use it or lose it” provisions with an HSA
• Your HSA dollars roll over year after year
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HSAs Are Portable
• Your HSA goes with you if you change jobs• Money is immediately 100% yours• You can use money in your HSA to pay for COBRA
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How does the wellness program work?
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Wellness Resources
• Health Risk Assessment• Interactive wellness tools and
health trackers• In-depth education and information• Health management resources
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How do I make the most of my HDHP/HSA program?
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Making the Most of Your HDHP/HSA Program
• Maximize the preventive care benefits• Use your HSA only for IRS-qualified
medical expenses• Become a conscious health consumer• Comparison-shop for high-value healthcare
services• Make healthy lifestyle choices
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Contribute the Maximum to Your HSA
• If you have HSA funds at the end of the year, you can use them for future medical expenses
• You can contribute up to the maximum even if it exceeds your HDHP deductible
Maximum Contribution Catch-Up Contribution
(55 and Up)Self-Only Family
2015 $3,350 $6,650 $1,000
2016 $3,350 $6,750 $1,000
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Become a Health Consumer
• Look for the best price on quality healthcare
• Compare name-brand and generic prices
• Adopt and maintain a healthy lifestyle
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HDHP/HSA Program Tips
• Use your HSA for medical expenses– Non-qualified expenses will be subject to current tax
and potential penalties
• Keeping records is important– For IRS purposes, keep receipts for at least three
years after using HSA funds to pay for a medical expense
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How do I enroll in myHDHP/HSA program?
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4 Simple Steps to Enroll in Your HDHP/HSA
• Step One– Begin by enrolling in your HDHP
• Step Two– Decide on your HSA contributions
• Step Three– Enroll in your HSA
• Step Four– Start saving for your future!
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You can join yourHDHP/HSA program today!