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 The numbers are slightly outdated but the information is good.

1. 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
.

2. 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.

3. 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.

4. What’s Happening Now…
The Purpose of Insurance
 To protect your employees from
financial hardship due to
unforeseen, catastrophic illness
and injury.

5. Unforeseen
Health Injury!
Catastrophic
Health Situation!

6. 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

7. 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!

8. 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.

9. 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.

10. 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).

11. 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.

12. 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

13. 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.

14. What Is A HSA…
How Does It Work?
Copyright © 2007, DYB Marketing. All rights reserved.

15. 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.

16. 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.

17. 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

18. 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

19. 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

20. 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

21. 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

22. 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.