AGENDA What is an HSA? Elements of Consumerism HSA Examples – Do the Math Resources

1. AGENDA What is an HSA? Elements of Consumerism HSA Examples – Do the Math Resources Studies – HSAs are working! HSA Usage Trends Health Reform and CDHPs EDJohnson@FirstHorizon.com Connect with Eric on Linked In! www.linkedin.com/in/ericjohnson262 817-366-7536

2. HEALTH SAVINGS ACCOUNTS

3. Think Differently

4. Think Differently Maybe your clients are over-insured.

6. Why Do We Buy Insurance? • To Pay for low cost, common, predictable expenses b) To pay for high cost, infrequent, unpredictable, catastrophic expenses

7. Other Types of Insurance: • To Pay for low cost, common, predictable expenses b) To pay for high cost, infrequent, unpredictable, catastrophic expenses Answer

8. For Example Insurance Budget

9. Traditional Health Plans: • To Pay for low cost, common, predictable expenses b) To pay for high cost, infrequent, unpredictable, catastrophic expenses c) All of the Above Answer

10. FULL Coverage Copayments Deductible / Coinsurance

11. The Result High Fixed Premium No Refunds for Unused Services Ignorance, Apathy, and Overutilization

12. A New Approach BUY INSURANCE for the Big Stuff BUDGET for the Rest

13. The Result Lower Fixed Premium New Variable Cost More Educated, Engaged Consumers

14. Health Plan + Savings Account Health Plan Savings Account (Fixed Premium) (Variable Cost)

15. Health Plan + Savings Account Health Savings Account High Deductible Health Plan (Fixed Premium) (Variable Cost)

16. High Deductible Health Plan

17. High Deductible Health Plan Minimum deductible of $1,200 individual / $2,400 family

18. High Deductible Health Plan Minimum deductible of $1,200 individual / $2,400 family Maximum OOP of $5,950 individual / $11,900 family

19. High Deductible Health Plan Minimum deductible of $1,200 individual / $2,400 family Maximum OOP of $5,950 individual / $11,900 family No copays before the deductible

20. High Deductible Health Plan Minimum deductible of $1,200 individual / $2,400 family Maximum OOP of $5,950 individual / $11,900 family No copays before the deductible Up-front coverage for preventive care is allowed

21. Health Savings Account

22. Health Savings Account Pre-tax contributions for health care expenses

23. Health Savings Account Pre-tax contributions for health care expenses Up to $3,050/yr individual, $6,150/yr family (+$1,000 55+)

24. Health Savings Account Pre-tax contributions for health care expenses Up to $3,050/yr individual, $6,150/yr family (+$1,000 55+) Contributions by employer or employee

25. Health Savings Account Pre-tax contributions for health care expenses Up to $3,050/yr individual, $6,150/yr family (+$1,000 55+) Contributions by employer or employee Individually owned accounts, no employer responsibility

26. Health Savings Account Pre-tax contributions for health care expenses Up to $3,050/yr individual, $6,150/yr family (+$1,000 55+) Contributions by employer or employee Individually owned accounts, no employer responsibility Unused funds roll over year to year