H S A To  Business  Owners
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H S A To Business Owners

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HSA's for business owners. The numbers are slightly outdated but the information is good.

HSA's for business owners. The numbers are slightly outdated but the information is good.

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H S A To  Business  Owners H S A To Business Owners Presentation Transcript

  • HSA Health Savings Account Health Insurance Costs Too High? You can Save $100 – $700 per month, per employee and still have the same or better coverage… This is how you do it. Copyright © 2007, DYB Marketing. All rights reserved http://www.emabenefits.com .
  • What’s Happening Now… Today’s Health Insurance Market is in an Affordability Crisis  Americans spent $1.7 trillion dollars on health care last year. This represents 15% of the U.S. gross national product!  It’s time for a better way.
  • What’s Happening Now… The Most Common Health Insurance Mistake.  Is accepting traditional expensive insurance plans.  The consumer has been insulated from the true cost of healthcare by low deductibles and co-pays.
  • What’s Happening Now… The Purpose of Insurance  To protect your employees from financial hardship due to unforeseen, catastrophic illness and injury.
  • Unforeseen Health Injury! Catastrophic Health Situation!
  • What’s Happening Now… 55% of insureds have claims < $1,000 annually 70% of insureds have claims < $2,000 annually 80% of insureds have claims < Insured Claims For Families and Individuals in 2005 $3,000 annually
  • With That Said… Are You Getting the Best Health Insurance Policy for Your Situation? OR The One Your Insurance Agent Makes the Most Money On!
  • Choose The Right Agent… The Truth  The Truth is with insurance regulations and standards, every agent receives the same price structure to offer clients.  The difference is asking the right questions to make sure you and your employees get the best insurance coverage for your situation.
  • Choose The Right Agent… The Three Most Dangerous Words You Could Say To Your Insurance Agent: “You’re The Expert.”  80% of Insurance Agents don’t specialize in health insurance. That means you may not be dealing with an expert.  Make sure your health care professional is truly an expert in HSA insurance options.
  • Choose The Right Plan… Do You Understand The High Cost Of Health Care Today?  The consumer must have greater financial responsibility for healthcare purchases to serve as an incentive to make prudent health decisions.  Greater financial responsibility includes:  Understanding high deductible policies.  Eliminating co-pays.  Using Health Savings Accounts (HSA).
  • Choose The Right Plan… At Last… A Health Insurance Plan that:  Has the most affordable monthly premium.  A deductible that makes sense.  A pre-tax savings plan for your business and employees.
  • Choose HSA What is an HSA?  A Health Savings Account (HSA) is a tax-favored savings account designed to allow for the accumulation of funds to pay for qualified healthcare expenses and to save for future expenses.  The HSA works with a high deductible health insurance plan. Together they provide:  Premium Savings  Tax Advantages  Investment Opportunities
  • What Is A HSA…  The HSA is the newest and most innovative approach to financing health care since the early 1960s.  HSAs are part of a permanent, federally approved program effective January 1, 2004.  The U.S. Congressional Committee estimates that 40 Million HSA policies will be written in the next 6-9 years.
  • What Is A HSA… How Does It Work? Copyright © 2007, DYB Marketing. All rights reserved.
  • Choose Major Medical Insurance Policy Deductible Choices Single Family $1,100 - $2,850 $2,200 - $5,650  Low premium – High deductible.  Select deductible to maximize monthly premium savings.  Common Family Deductible  Everyone in family shares one deductible.  Gives you less out of pocket expense risk.
  • Choose HSA Contribution Maximum Contributions  Annual contribution limits for 2007 are capped at the lower amount of either the insurance policy deductible or $2,850 for individuals and $5,650 for family.  Catch-up Contributions – Those 55 and older can make additional annual contributions.  Amount allowed is $800 in 2007.
  • HSA Savings Example Current Quoted HSA Extra Policy Policy Account Savings Month 1 $700.00 $300.00 $300.00 $100.00 Month 2 700.00 300.00 300.00 100.00 Month 3 700.00 300.00 300.00 100.00 Month 4 700.00 300.00 300.00 100.00 Month 5 700.00 300.00 300.00 100.00 Month 6 700.00 300.00 300.00 100.00 Month 7 700.00 300.00 300.00 100.00 Month 8 700.00 300.00 300.00 100.00 Month 9 700.00 300.00 300.00 100.00 Month 10 700.00 300.00 300.00 100.00 Month 11 700.00 300.00 300.00 100.00 Month 12 700.00 300.00 300.00 100.00 $8,400.0 One Year Totals 0 $3,600.00 $3,600.00 $1,200.00
  • Qualified HSA Withdrawals  Eligible medical expenses as defined under Section 213 (d) of the IRS Code. Examples include:  Medically necessary services  Deductibles and co-insurance payments  Eye care, glasses  Dental  Qualified Long-Term Care Premiums  COBRA Continuation Premiums  Medicare Premiums
  • Non-Qualified HSA Withdrawals  Under age 65  Non-qualified withdrawal is taxed as ordinary income plus 10% penalty.  65 or Older  Subject to income tax but likely at a lower rate; just like a non-qualified 401k withdrawal.  No penalty
  • HSA Tax Advantages  Contributions are either tax deductible or can be paid with pre- tax dollars through a cafeteria plan.  Investment income is tax-free.  Qualified withdrawals are tax-free.  Accrue savings from year to year and build a tax-sheltered nest egg for future long-term healthcare. “That makes HSA tax benefits SUPERIOR even to IRAs. With IRAs the money is taxed either before it goes into the account or as it is taken out.” USA Today http://www.emabenefits.com
  • Investment Opportunity  Save money TAX-FREE for future medical expenses.  Unused funds accumulate from year to year giving you the power of compound interest in the investment option of your choice.  Investment option examples:  Money market funds  Stocks and bonds  Mutual funds  Savings Accounts
  • Bottom Line… If you or you’re business are not participating in a HSA Plan… You’re probably paying too much! Evaluate Your Health Insurance Today! Invest 10 minutes and receive your quote! Edward T. MacConnell CES, CBC Your Health Care Benefits Expert for Individual & Group Health Plans. Copyright © 2007, DYB Marketing. All rights reserved.