Taking the Heap to HDHPs

Karen K. Sones, HR Strategic Project DirectorFirst Horizon National Corporation

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The Evolution

2

2013Enhanced HSA Contributions

Prior to 2009Multiple PPO

plans

2011HSA

Contributions

2009Introduced

HDHP

HDHP Parti

cipatio

n

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The Evolution - Details

3

• Prior to 2009• Multiple PPO plans with deductibles• Deductibles ranging from $250 to $1250

• Introduced high deductible plan in 2009• $1500 deductible• 10% enrollment in HDHP

• Added Employer HSA contributions in 2011• $1500 deductible• Maximum $500 in employer HSA contributions• 26% enrollment in HDHP

• Increased Employer HSA contributions in 2013

• $1300 deductible• Maximum $700 in employer HSA contributions• 34% enrollment in HDHP

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2014 Plan Design

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$1300 Plan $2000 Plan

Deductible Out of Pocket Max

Deductible

Out of Pocket Max

Single $1,300 $4,500 $2,000 $6,000

Family $2,600 $,9000 $4,000 $12,000

Employer HSA Contributions

Base Pay $50,000 or

less

Non Tobacco

User

Health Risk Assessment

MatchingTotal

Annual Contribution

Employee $150 $150 $200 $200 = $700

Employee +1 or

Family$300 $300 $200 $400 = $1200

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Why Full Replacement HDHP?

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Promotes wise health care choices

Encourages financial planning

Tax benefits when combined with HSA

Lowers overall cost to employee/company

Shares the cost more equitably

Transparency changes behavior

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Road to Successful Transition Develop a foundation for change

Address fear of change

Offer choices Communicate candidly

Consider transition support

Engage employees as partners

Teach ownership and accountability

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Total Cost of Health CareFor The Company:

It’s a partnership........

Employee and their physician make decisions on most appropriate care while

evaluating available options and costs

AND

Employer negotiates with health plan carriers and pharmacy vendors to obtain the highest possible network discounts

Employer negotiates with health plan

carriers and pharmacy vendors to receive the

best possible pricing for administrative services

Employee and Employer share the cost through

premium payment

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Total Cost of Health CareFor Employee:

• Shared with Employer

• Pretax biweekly payroll deductions

• Includes preventive benefits at 100% without a deductible

• First $1300/$2600 incurred each calendar year for medical and/or pharmacy expenses

• Can use Company Provided HSA Contributions to help pay the deductible

• 20% of expenses incurred after the deductible is met

• Capped at out of pocket limit

• Can use Company Provided HSA Contributions to help pay the coinsurance

PLANNING

IS

KEY

This should be a part of

your family’s budget

8

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Employee Education

Topics Insurance 101 HDHP HSA Financial Preparedness

Methods Online & Print Computer based training Meetings Team Meetings Family Meetings One on ones

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QuestionsQuestions

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Email me: kksones@firsthorizon.com