ConnectiCare HSA Solution Presentation
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Transcript of ConnectiCare HSA Solution Presentation
Copyright © 2013 Finity, Inc. All Rights Reserved.
20130503
ConnectiCare HSA Solution Presentation
The health of your business is at the
heart of everything we do
Copyright © 2013 Finity, Inc. All Rights Reserved.Copyright © 2013 Finity, Inc. All Rights Reserved.
HDHP/HSA Program Overview
• Health insurance costs are rising • HDHP/HSA programs may be part of the solution
by:– Offering potentially lower health premiums – Encouraging healthier lifestyles– Promoting health consumerism
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Answers to Your Questions
• What is an HDHP/HSA program?• Why are HDHP/HSA programs important? • How does an HDHP/HSA program work?• How does an HSA work?• What are the employee benefits?• What are the employer benefits?
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What is an HDHP/HSA program?
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A New Kind of Healthcare Program
• HDHP/HSA programs were created as part of the Medicare Modernization Act of 2003
• Part of the Consumer-Directed Healthcare (CDH) trend
• CDH programs share some of the cost and responsibility for healthcare expenses with the employee
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Why are HDHP/HSA programs important?
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Health Premiums Keep Rising
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Average Annual Health Insurance Premiums 2008 to 2012
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2012. Chart compiled by Finity Communications.
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HDHPs Can Lower Costs
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HDHP vs. Non-HDHP Health Insurance Premiums
Estimated average annual premium of $4,713 for HDHP individual coverage and $13,446 for HDHP family coverage vs. $5,777 for non-HDHP individual coverage and $16,128 for non-HDHP family coverage.
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2012. Chart compiled by Finity Communications.
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How does an HDHP/HSA work?
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Two Components Working Together
• High Deductible Health Plan (HDHP)– Health plan offered by a health insurance company or
an employer
• Health Savings Account (HSA) – An individual custodial account
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High Deductible Health Plan
• An HDHP is a health plan designed with a higher deductible than many traditional health plans
• Employees pay for most medical expenses before the deductible is reached
• In exchange for higher deductibles, HDHPs often have lower premiums
• Any premium savings can be put into an HSA to pay for healthcare expenses
• Money in an HSA rolls over each year
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HDHPDeductible Requirements
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• Single deductible that applies to all covered medical expenses
• Minimum annual deductible:
• Maximum annual out-of-pocket:
Coverage Type 2013 2014
Self-Only $1,250 $1,250
Family $2,500 $2,500
Coverage Type 2013 2014
Self-Only $6,250 $6,350
Family $12,500 $12,700
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How does the HSA work?
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Health Savings Account
• Provided by an HSA custodian • Owned by employees• Not part of a qualified benefit plan
(i.e., ERISA does not generally apply)
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Health Savings Account
• Tax-advantaged account • Used to pay for medical expenses before HDHP
benefits apply• Employees may be able to use HSA money for
expenses not covered under a traditional plan• Employees should check their HDHP to see what
counts toward the deductible
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HSA Contribution Limits
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• Maximum contribution limits are:
• Limits subject to cost-of-living adjustments
• Employees age 55 and older can make catch-up contributions
2013 2014
Individual $3,250 $3,300
Family $6,450 $6,550
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Employer HSA Contributions
• Matching contributions motivate employees to save in their HSAs
• Employees with no savings risk being financially vulnerable
• Contributions show our commitment to the HDHP/HSA program
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Employer Contribution Requirements
• Contributions can vary each year• Contributions don’t have to be equal, but they
must be “comparable”• Larger contributions can be made for lower-
compensated employees• Combined contributions must not exceed
contribution limits• Vesting requirements are simple
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Our HSA Custodian
• A leading financial institution• Interest paid on deposit account balances• Deposit accounts are FDIC-insured• Provides all recordkeeping • Provides all administration
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HSA Services for Employees
• HSA welcome kit• HSA debit card• Access to online tools and education• Monthly HSA statements• 24/7 account access online or by telephone
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What are the benefits of an HDHP/HSA for employees?
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HDHP/HSAs Offer Choice, Flexibility and Control
• Potentially lower health insurance premiums • Tax-advantaged savings in HSAs• Funded with direct deposits, payroll
deduction, or an IRA rollover• Promote increased health consumerism• Reward healthier lifestyles
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HSAs Pay for Medical Expenses Before HDHP Benefits Apply
• Employees control their HSAs• No “use it or lose it” provisions• Funds roll over year after year• HSAs are portable
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HSAs Provide Significant Tax Advantages
• Tax-deductible• Earnings accumulate without tax• Funds used for qualified medical expenses are
tax-free• State taxes may vary• Employers not responsible for monitoring HSA
spending
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What are the benefits to employers?
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More Sustainable Healthcare
• Rising health insurance costs may create an unsustainable healthcare system
• HDHPs share some of the responsibility with the employee
• HSAs may motivate health consumerism• Sustainability may be achievable by motivating
employees to become part of the solution
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Healthy Lifestyles and Awareness
• Healthy lifestyles can be rewarded with tangible financial benefits
• Conscious health consumerism • May help health experience ratings• HSAs may help empower employees
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Higher Corporate Profitability
• Higher deductibles may lower health insurance premiums
• Less spent on health insurance means higher company profitability
• Higher profitability means a more secure future for employees
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HDHP/HSA programs can help create a healthy future
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