The document discusses health insurance and high deductible health plans (HDHP). It provides comparisons of premium costs for single, single+1, and family coverage under different plans. It also discusses health savings accounts (HSAs) which can be used to pay for medical expenses with pre-tax dollars when paired with a HDHP. The document recommends maximizing contributions to retirement accounts, then an HSA, and maintaining good health habits.

1. November 3, 2008 HEALTH INSURANCE MEETING Madelyn H. Hornstein, CPA Dermody, Burke & Brown, CPAs LLC 443 N. Franklin St. Syracuse, NY 13204 315-234-8190

2. “ Health care is the only system where you can come in, receive services, have no idea what they cost and then leave without paying,“ Do you know how much your Health Care costs annually?

3. What is the insurance for? Why do we buy it? Do we need it? If so, how much? Can we self insure ourselves? ASK YOURSELF THESE QUESTIONS FOR ALL TYPES OF INSURANCES: Typical types of insurance: health, dental, cancer, life, homeowners, long term care, business liability, umbrella, automobile, malpractice, etc. “ Health care is the only system where you can come in, receive services, have no idea what they cost and then leave without paying,"

4. Where Do You Fall? - 67% of ALL utilizers incur under $1,000 annually in medical & Rx services - 31.2% of ALL utilizers incur $1,000 to $10,000 annually in medical & Rx services - 1.8% of ALL utilizers incur over $10,000 annually in medical & Rx services

6. Let’s Compare Premiums for Single + 1 Health Coverage How much have you spent in Health Care this year? How much do you expect to spend in Health Care in 2008? $2,077.20 $5,859.00 $7,936.20 Total Cumulative Difference $173.10 $346.20 $519.30 $2,077.20 $4,000 High Deductible $488.25 $488.25 $488.25 $488.25 UHC-EPO Traditional $661.35 $661.35 $661.35 $661.35 Month January February March December

7. Let’s Compare Premiums for Family Health Coverage How much have you spent in Health Care this year? How much do you expect to spend in Health Care in 2008? $2,750.64 $7,759.08 $10,509.72 Total Cumulative Difference $229.22 $458.44 $687.66 $2,750.64 $4,000 High Deductible $646.59 $646.59 $646.59 $646.59 UHC-EPO Traditional $875.81 $875.81 $875.81 $875.81 Month January February March December

9. What will this change cost me? Premium cost is comparable to what you were paying for old insurance. Bi-weekly payroll deduction is $30.38 Employer is continuing to contribute $3,000 towards cost. $1,000.00 $2000.00 $790.00 $2,790.00 Total Employer HSA Contribution $500.00 $0 $0 $500.00 Employer Premium Cost $166.67 $166.67 $166.67 $166.67 Employee Premium Cost $65.83 $65.83 $65.83 $65.83 Total Monthly Premium Cost $232.50 $232.50 $232.50 $232.50 SINGLE Month January February March April

10. What will this change cost me? Premium cost is less than what you were paying for old insurance. Bi-weekly payroll deduction is $148.42 Employer is continuing to contribute $3,000 towards cost. $1,000.00 $2000.00 $3859.00 $5859.00 Total Employer HSA Contribution $500.00 $0 $0 $500.00 Employer Premium Cost $166.67 $166.67 $166.67 $166.67 Employee Premium Cost $321.58 $321.58 $321.58 $321.58 Total Monthly Premium Cost $488.25 $488.25 $488.25 $488.25 SINGLE Plus 1 Month January February March April

11. What will this change cost me? Premium cost is less than what you were paying for old insurance. Bi-weekly payroll deduction is $221.50 Employer is continuing to contribute $3,000 towards cost. $1,000.00 $2000.00 $5,759.08 $7759.08 Total Employer HSA Contribution $500.00 $0 $0 $500.00 Employer Premium Cost $166.67 $166.67 $166.67 $166.67 Employee Premium Cost $479.92 $479.92 $479.92 $479.92 Total Monthly Premium Cost $646.59 $646.59 $646.59 $646.59 FAMILY Month January February March April

26. RECOMMENDATIONS: Order for Savings: Contribute into your 401(k) plan the % that allows you to get the maximum matching contribution. (example: if the company matches 25% on 1 st 6% of salary contributed, then you should put in 6% of your salary) Max out on your allowable HSA contributions. Make a Roth IRA contribution (if allowed). If you still have money to save, put more of your salary into the 401(k) plan. Keep an eye on the savings you already have. Begin saving more than you are currently. Please practice good health and go to the doctor for routine checkups and seek medical care when necessary. Websites: planforyourhealth.com, hsainsider.com, benefitslink.com, irs.gov (Publication 969).