CONSUMER DRIVEN HEALTH CAREAre You Up to Speed?                               Presented By:                       John V. ...
Stewarts Insurance DepotCONSUMER AWARENESS                                            2
Stewarts Insurance Depot          Consumer AwarenessSome myths and facts:Health insurance companies make lots of money on ...
Stewarts Insurance DepotSo where does our insurance dollars go? If 87 cents of every major medical insurance dollar goes t...
Stewarts Insurance Depot Your personal Survey on Major Medical Insurance Cost savings start with what kind of major medica...
Stewarts Insurance DepotHow much do you want to spend on Major Medical Insurance?  George Ready (Age 30) 32034  Single    ...
Stewarts Insurance DepotWHY HSA QUALIFIED PLANS?                                          7
Stewarts Insurance Depot                      Why HSA Qualified Plans?• You are in control of how you use your health care...
Stewarts Insurance Depot                            An HSA Growth IllustrationIncome tax reduction anyone?                ...
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Part 1: Consumer Awareness

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Part 1: Consumer Awareness

  1. 1. CONSUMER DRIVEN HEALTH CAREAre You Up to Speed? Presented By: John V. Stewart, MSM, CDHC Stewart’s Insurance Depot S.E. Georgia 912.434.2090 N.E. Florida 904.729.4025 Metro Indianapolis, IN 317.570.1271 Metro Cincinnati, OH 513.868.0040 Nationwide 866.203.5097
  2. 2. Stewarts Insurance DepotCONSUMER AWARENESS 2
  3. 3. Stewarts Insurance Depot Consumer AwarenessSome myths and facts:Health insurance companies make lots of money on us! Fact: Health Insurance Companies make 3 cents on every dollar. Fact: The insurance industry is the only industry required by law to make a profit. So where does our insurance dollars go? 3
  4. 4. Stewarts Insurance DepotSo where does our insurance dollars go? If 87 cents of every major medical insurance dollar goes to covering us, what can I do to help control my costs and keep my insurance premiums as low as possible? 4
  5. 5. Stewarts Insurance Depot Your personal Survey on Major Medical Insurance Cost savings start with what kind of major medical plan I am looking to purchase.The plan will cover with ages of:I would like a ( local, regional or national ) insurance carrierWhat amount do I want to pay as a deductible?Do I want a coinsurance amount (what % 90/10, 80/20,70/30, 50/50)?How many times a year do I go to the doctor?Do I want a plan that has doctor copays?How many prescriptions do I purchase a year?Do I want a plan that has prescription drug coverage?Do I want a tax advantage plan with qualifying highdeductible insurance? Y or NHow much am I willing to put into an HSA account/year? 5
  6. 6. Stewarts Insurance DepotHow much do you want to spend on Major Medical Insurance? George Ready (Age 30) 32034 Single Plan Type Deductible Coinsurance Total Out of Pocket Copay Premium % Cost Difference Cost of Copay/year Saver $2,500.00 $3,000.00 $5,500.00 N/A $70.80 Base of % Base No Copay 80% Plan $2,500.00 $3,000.00 $5,500.00 N/A $106.68 33.63% Copay Plan $2,500.00 $3,000.00 $5,500.00 $35.00 $110.57 35.97% $477.24 100% Plan $2,500.00 $0.00 $2,500.00 N/A $127.09 44.29% Single HSA * $2,500.00 $0.00 $2,500.00 N/A $128.02 44.70% Nancy Ready (Age 30) 32034 Single Plan Type Deductible Coinsurance Total Out of Pocket Copay Premium % Cost Difference Cost of Copay/year Saver $2,500.00 $3,000.00 $5,500.00 N/A $91.94 Base of % Base No Copay 80% Plan $2,500.00 $3,000.00 $5,500.00 N/A $140.08 34.37% Copay Plan $2,500.00 $3,000.00 $5,500.00 $35.00 $166.98 44.94% $900.48 100% Plan $2,500.00 $0.00 $2,500.00 N/A $165.13 44.32% Single HSA * $2,500.00 $0.00 $2,500.00 N/A $167.91 45.24% George Ready & Family (Parents Age 30) 32034 Plan Type Deductible Coinsurance Total Out of Pocket Copay Premium % Cost Difference Cost of Copay/year Saver (2) $5,000.00 $6,000.00 $11,000.00 N/A $268.83 Base of % Base No Copay 80% Plan (2) $5,000.00 $6,000.00 $11,000.00 N/A $270.68 0.68% Copay Plan (2) $5,000.00 $6,000.00 $11,000.00 $35.00 $506.15 46.89% $2,847.84 Plan 100 (2) $5,000.00 $0.00 $5,000.00 N/A $481.89 44.21% Family HSA (1)* $5,000.00 $0.00 $5,000.00 N/A $451.67 40.48% Gearge Ready & Wife (Age 60) 32034 Plan Type Deductible Coinsurance Total Out of Pocket Copay Premium % Cost Difference Cost of Copay/year Saver (2) $10,000.00 $6,000.00 $26,000.00 N/A $285.72 Base of % Base No Copay 80% Plan (2) (2) $10,000.00 $6,000.00 $26,000.00 N/A $374.78 23.76% Copay Plan (2) $10,000.00 $6,000.00 $26,000.00 $35.00 $445.28 35.83% $1,914.72 Plan 100 (2) $10,000.00 $0.00 $20,000.00 N/A $443.43 35.57% Family HSA (1)* $10,000.00 $0.00 $10,000.00 N/A $521.38 45.20% () Indicates number of persons needed to meet deductible requirement * HSAs have benefit of a health savings account and tax deduction of income and 0 tax when used for IRS acceptable major medical procedures and Rxs Note: the plans outside the HSAs and 0 coinsurance plans have larger out-of-pockets Look what it costs to have an office visit copay and other bells and whistles. Note: rich benefit plan 6
  7. 7. Stewarts Insurance DepotWHY HSA QUALIFIED PLANS? 7
  8. 8. Stewarts Insurance Depot Why HSA Qualified Plans?• You are in control of how you use your health care dollars.• Become more involved in managing your cost of care.• Learn how to shop for the best prices for your care.• Your tax-advantage contributions to your HSA account grow over time.• It is your money to use tax-free for qualified medical expenses.• There is no “use it or lose it” philosophy. If you don’t use it, save it for next year. Or better yet, for retirement.• After age 65, HSA funds can be used for non-qualified expenses and only income tax is assessed. From HSABank website 8
  9. 9. Stewarts Insurance Depot An HSA Growth IllustrationIncome tax reduction anyone? The Happy family with George age 30 and Susan age 30 have changed from a conventional major medical Contribution 2011 Limits Single Family plan to a High deductible HSA qualified family plan.Minimum Deductible $1,200 $2,400 No kids yet, but who knows…. Remember HSA/HDHP family plans; all insured members haveMaximum Out-of-Pocket $5,950 $11,900 access to these funds for medical expenses asContribution Limit $3,050 $6,150 allowable by the IRS. When George and SusanCatch-up Contribution (55 or older) $1,000 $1,000 convert to Medicare at age 65, here is what they have. Estimates Below for this illustration: Enter your average contribution per year: $ 4,000.00 Enter your average medical expenses per year: $ 850.00 How many years will your account accumulate? 35 Enter your federal tax bracket: 28% Enter your state tax: Florida no state income tax Enter your bank interest rate: 3% Results of the Happy family having a HDHP/HSA: Future Value Calculator Net Contributions: $110,250.00 Net Contributions Per Year: $3,150.00 Tax Savings on Contributions: $30,870.00 Tax Savings on tax-deferred growth: $22,457.56 Future Value: $190,455.56 From HSABank website 9

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