This document discusses rising healthcare costs in Ohio and the United States. It provides examples of costs for common medical procedures and exams. It also lists the top 5 causes of death in the US. The document then discusses income potential over a career and considerations for choosing a consumer driven health plan versus a traditional plan. It provides an example comparing the costs and savings of the two plan types. Finally, it discusses the Ohio Department of Insurance and using a broker to select health insurance.

1. Rising Cost of HealthCare ~
Ohio
Darrah Courter
ADM Benefits
dcourter@admbenefits.com
800-851-0814
November 2010

2. Medical Costs….
 MRI – Brain =
 $1,206 - $1,689
 Colonoscopy =
 $980 - $1,772
 Anti-Depressants =
 $792 - $1932 (annually)
Starmark’s Cost Calculator – Female 43065 20-44 yrs

3. Premium Dollar

4. Death Statistics In U. S.
 Heart disease: 652,091
 Cancer: 559,312
 Stroke (cerebrovascular diseases): 143,579
 Chronic lower respiratory diseases: 130,933
 Accidents (unintentional injuries): 117,809
Hsiang-Ching Kung, Ph.D.; Donna L. Hoyert, Ph.D.; Jiaquan Xu, M.D.; & Sherry L. Murphy, B.S.; Division of
Vital Statistics. Deaths: Final Data for 2005, National Vital Statistics Reports. April 24, 2008

5. Troubling Facts

6. Income Illustration
35 yr Old $50K annually
How Many working years left?
Retirement age 65 – current age 35 =
30 working years till retirement
What is this person worth?
30 working yrs X $50 K =
$1.5 Million!

7. Understanding Group
Insurance
• In the State of Ohio, mandates are in place that the
Employer must contribute at least 50% of the
employee only premium rate.
• Group Health insurance rates are determined by:
• Nature of Business
• Zip code of the company’s headquarters
• Overall Age/Gender demographics of the group
• Overall health risk of the group

8. Why buy a CDHP?
 Lower Premium
 Long term solution
 Changes behaviors

9. Health Savings Accounts
 It a tax-advantaged account used to
pay qualified medical expenses
 It needs to be paired up with a
Qualified High Deductible Health Plan
 Policy Owner owns the account

10. Anthem 1000 HSA 6000
Monthly Premium $460.00 $231.00
Annual Premium $5,520.00 $2,772.00
Sample Annual Medical
Expense
2 Doctor visits $60.00 $200.00
Annual Exam $30.00 $0.00
Outpatient Testing
($1,150 after PPO
discount)
Amount Subject to
Deductible $1,000.00 $1,150.00
20% co-insurance $30.00NA
Total Medical Expense $1,120.00 $1,350.00
HSA Contribution $0.00 $1,500.00
HSA Balance $150.00
Less Income Tax
savings $0.00 -$420.00HSA deposit x 28% (tax bracket)
Annual After-Tax Cost
of Medical Care $6,640.00 $3,852.00 Savings of: $2,788.00
Traditional vs. CDHP Comparison

11. Qualified Medical Expenses
2010

12. Why use a Broker?
 FREE to you! The insurance company pays
them
 Licensed
 Knows the products & carriers
 Will be your advocate

13. Ohio Department of Insurance
 Governing Body for the State of Ohio
for all insurance carriers & producers
http://www.ohioinsurance.gov/
 Agent/ Agency Locator
 Authorized Companies
Director Mary Jo Hudson

14. Agent/ Agency Locator
Also shows any administrative actions against the agent / agency

15. Authorized Companies
Make sure the company is a Health Insuring Corporation.

16. Questions??
Feel Free to Contact me –
1-800-851-0814