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Introducing our new
HDHP/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 offering
an HDHP/HSA program?
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Rising Cost of Health Insurance
HDHPs May Have Lower Premium Costs
Sample difference in premium costs in 2013.
Individual
Family
$18,000
$16,623
$16,000
$14,000
$14,155
$12,000
Estimated average annual premium of
$5,006 for HDHP individual coverage
and $14,155 for HDHP family
coverage. vs. $6,025 for non-HDHP
individual coverage and $16,623 for
non-HDHP family coverage.
$10,000
$8,000
$6,000
$6,025
$5,006
$4,000
Source: Kaiser/HRET Survey of EmployerSponsored Health Benefits, 2013.
Chart compiled by Finity Communications.
$2,000
$0
HDHP
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Non-HDHP
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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
HDHP/HSA
Program
Healthy
Lifestyle
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Health
Consumerism
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How Your HDHP/HSA Works
HSA
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HDHP
Wellness
HSA Funded by
Employee &/or
Employer
HDHP Premiums
Paid by Employee
&/or Employer
Certain
Preventive Care
Covered Before
the Deductible
Eligible Expenses
Paid Out of HSA
Before
Deductible
Covered
Expenses Paid by
HDHP Benefits
After Deductible
Wellness
Program Offers
Resources, Tools,
and Information
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HDHP/HSA Programs Provide Choice
• HSA dollars can be used to pay for any IRSqualified 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
Coverage Type
2014
2015
Self-Only
$1,250
$1,300
Family
$2,500
$2,600
• Maximum annual out-of-pocket
Coverage Type
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2014
2015
Self-Only
$6,350
$6,450
Family
$12,700
$12,900
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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
•
•
•
•
•
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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
Pre-Tax
Contributions
Tax-Free
Growth
Tax-Free
Withdrawals
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
Self-Only
Family
Catch-Up
Contribution
(55 and Up)
2014
$3,300
$6,550
$1,000
2015
$3,350
$6,650
$1,000
Maximum Contribution
• 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
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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 my
HDHP/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 your
HDHP/HSA program today!
20140604
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