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Celebrating 75 Years 1932 -2007

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Celebrating 75 Years 1932 -2007. Consumer Directed Health Plans. How can they Impact Retiree Health Benefits. Consumer Directed Plans. Usually use a High Deductible Health Plan Have a component of participant responsibility.

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consumer directed health plans

Consumer Directed Health Plans

How can they Impact Retiree Health Benefits

consumer directed plans
Consumer Directed Plans
  • Usually use a High Deductible Health Plan
  • Have a component of participant responsibility.
  • Empower participants to make independent decisions while providing an economic incentive.
  • Successful plans will provide tools to help participants in their decision process.
what are consumer directed health plans
What are Consumer Directed Health Plans?
  • HRA’s - Health Reimbursement Arrangements
  • HSA’s - Health Savings Accounts
  • MSA’s (MMSA’s)- (Medicare) Medical Savings Accounts
hra health reimbursement account
HRA - Health Reimbursement Account

Employer Benefits

  • Do not require a qualified plan
  • More flexibility in plan design
  • Employer owns benefit
  • Only portable to the extent employer allows
  • Limited long term liability
  • Stabilization of rising costs
hra health reimbursement account1
HRA - Health Reimbursement Account

Employee Benefits

  • Direct access to providers of choice - no referrals
  • No out of pocket expenditure for expenses under HRA balance
  • Control over healthcare decisions
  • Increasing benefits - rewarded for good health
  • Stabilization of rising costs
hsa plans
HSA Plans
  • Qualifeid High Deductible Plan (Required)
  • Tax Free Savings Plan to Pay for Healthcare Expenses
  • Available to any size Group
  • Employee Owns Account
hsa qualified medical plan
HSA - Qualified Medical Plan
  • High Deductible
  • No first Dollar Benefits except for Preventative Care
  • Filed as a HSA Compatible Plan
hsa health savings account
HSA - Health Savings Account
  • Must use a Qualified Financial Vendor
  • Can Fund up to $2850 (single) or $5650 (family) for 2007
  • Catch-up Provision – Over age 55, $800 for 2007, $900 for 2008
  • Employee and/or Employer can make contributions
  • Employee owns the Account
  • Funds are fully portable
hsa use of funds
HSA -Use of Funds
  • Medical expenses under IRS Code 213(d) *
    • Medical
    • Dental
    • Vision
  • COBRA Premiums *
  • Medicare Premiums *
  • Long Term Care Premiums *
  • Retirement Savings - Subject to State and Federal Taxes

* Subject to State Taxes

hsa health savings account1
HSA - Health Savings Account

Employer Benefits

  • Predictable Costs
  • Employer and Employee Can Fund
  • Usually better pricing than HRA Plans
  • No long term liability
  • Stabilization of rising costs
hsa health savings account2
HSA - Health Savings Account

Employee Benefits

  • Direct access to providers of choice - no referrals
  • No out of pocket expenditure for expenses under HSA balance
  • Control over healthcare decisions
  • Increasing benefits - rewarded for good health
  • Stabilization of rising costs
  • Employee owns the account
example of retiree pricing
Example of Retiree Pricing

Fresno County – Unblended Retiree Benefits

  • Blue Shield $250 Ded PPO Plan including Rx, Dental, & Vision = $823.47 per month Retiree Only
  • Blue Shield $1500 Ded HSA Plan $4500 OoP Max including Rx, Dental, & Vision = $468.12 per month Retiree Only
  • Savings = $355.35 Mth, $4264 Ann
  • Pays almost entire liability, Plus Tax benefits for HSA account.
why hsa s for county retiree s
Why HSA’s for County Retiree’s
  • More Affordable for Retirees
  • Reduces GASB liability where rates are still blended
  • Easy way to introduce to Employee Population
  • If offered to Employees provides a way to save for Retirement Health Benefits
msa medical savings account
MSA Medical Savings Account
  • Original Term for HSA’s
  • Now an option for Medicare MA Plans

(MA = Medicare Advantage)

  • Still evolving, look to the future
  • High Deductible Plan combined with a Benefit/Savings account
  • Only Medicare can fund the account