Tips to maximize your
HSA savings
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Confidential and proprietary. Reproduction without express written consent is prohibited.
HSA educational series
Three-part webinar series:
1.
Health savings account basics
2.
Tips to maximize your HSA savings
3.
HealthEquity member portal overview
www.healthequity.com/webinars
2
Maximize your HSA opportunity
The HSA win:
•
Save now
- Spend smart
- Review your benefits
- Maximize your HSA contributions
•
Save for the future
- Cover the Medicare gap
- Investment opportunity
- Bank future benefits
3
Spend smart: the right provider
Costs for a specific procedure can vary
by provider, even under the same
health plan.
Things to remember:
• Transparency tools
• Major procedures
• Procedure codes for price quotes
4
Spend smart: generic drugs
Generic drugs cost 30-80% less
than their brand equivalent.
Brand Name Drug
Brand Cost
Generic
Alternative Cost
Lipitor* 10mg (30)
$123
$84
Adderall Xr* 20 mg (30)
$212
$29
Nasonex* 50 mcg (spray)
$130
$53
Boniva* 150mg (1 Tab, 30)
$140
$9
Visit lowestmed.com to compare prices between brand & generic
as well as between your local pharmacies.
*Brand name
5
Spend smart: care facilities
A visit to the ER can cost you 300% - 700% more than
a visit to an urgent care facility for the same issue.
Reason for Visit
ER Visit
Urgent Care Visit
Flu symptoms
$395
$50
Sore throat
$440
$100
Laceration repair
$700
$150
Sprain
$385
$65
$1,110
$35
$785
$50
Abdominal pain
Headache
Urgent Care: minor lacerations, fractures, bumps, sprains, sore throats, ear infections,
and other "just don’t feel good" conditions.
Emergency Room: potentially life threatening conditions like stroke or chest pain.
6
Review your benefits
Billing errors can cost you money,
regardless of who made the mistake.
Tips:
•
Compare provider statements to your
explanation of benefits (EOB) from your
health plan.
•
Immediately contact your health plan to
address any discrepancies.
7
Maximize your HSA contributions
2014 max contributions allowed by IRS:
• Single-coverage: $3,300
• Family-coverage: $6,550
• Catch-up contribution, age 55+: $1,000
How to fund your HSA:
• Make pretax contributions through payroll deduction, online,
or directly to HealthEquity
• Fully fund your HSA on day one
• Make contributions anytime after your HSA is open
8
Cover the Medicare gap
Consider:
•
Average retiree will need $220,000 to
cover out-of-pocket health expenses not
covered by Medicare*.
•
Social Security payments alone will not
cover health expenses in retirement.
•
Average out-of-pocket medical expenses
on Medicare:
– 65–74 spend $2,920/yr
– 75–84 spend $3,815/yr
– 85 and above spend $4,615/yr
*Source: Fidelity, 2013
9
Cover the Medicare gap
Medical expenses not covered by
Medicare, can always be paid
from your HSA.
Your HSA can always pay for:
• Dental
• Eyewear
• Hearing aids
10
Invest your HSA
HealthEquity offers best-in-class
investments options.
• Access the easy-to-use
investment platform within your
HealthEquity member portal.
• Use your banked benefits and
other savings to grow your money
even faster.
11
HSAs win vs. IRA or 401k
By contributing the maximum amount to your HSA, you are taking
advantage of the MOST effective tax savings available to you.
•
•
IRA/401k savings (Roth or
traditional) are taxed at
some point.
2000
HSAs are not taxed at any
point in the savings or
spending process if they
are used for qualified
medical expenses.
1000
1500
HSA
401k or IRA
500
0
20 Years
30 Years
40 Years
Tax statements refer to federal taxes. A few states treat HSA contributions as taxable.
Consult your tax advisor for more details.
12
Bank future benefits
There is no time limit to reimburse
expenses from your account.
• Paying out-of-pocket allows you to keep
money in your HSA and earn interest
until you really need it.
• Upload your receipts to your personal
portal for safekeeping.
• Banking benefits leaves more for you to
invest.
13
New HealthEquity mobile app
Convenient, powerful tools:
• On-the-go access for all account types
• Take a photo of documentation with
phone and link to claims and payments
• Send payments and reimbursements
from HSA
• Manage debit card transactions
• View claims status
Available for iOS and Android
14
Expert friends
Always available
Our member services are taking calls 24 hours a
day, every day of the year
Every step along the way
We are here to answer any questions you have
and help you maximize your savings
Call today
Let us conduct a personal assessment of your
plan options
866.346.5800
www.HealthEquity.com
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