Art or Science? HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc

Art or Science?

HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

When you lead with science…


Step 1: Get their attention


Lead with the Art!


Do the Math!


Copay vs. HSA

$3k deductible 100% Copay Plan

$3k deductible 100% HDHP


Plan Design – No Copays

$3,000 Deductible

100% coverage after deductible

Dr: $30

Rx: $10 / $40 / $60

COPAY



$3,000 Deductible


Dr: Negotiated rate / deduct.

Rx: Negotiated rate / deduct.

HSA

$3,000 Deductible


Dr: $30

Rx: $10 / $40 / $60

COPAY



$3,000 Deductible


Dr: $30

Rx: $10 / $40 / $60

Monthly: $347

Yearly: $4,164

$3,000 Deductible




Monthly: $297

Yearly: $3,564

COPAY HSA


Premium Savings – Put in HSA

$3,000 Deductible


Dr: $30

Rx: $10 / $40 / $60

Monthly: $347

Yearly: $4,164

$3,000 Deductible




Monthly: $297

Yearly: $3,564

COPAY HSA

$600/year


What’s the Risk?

$3,000 Deductible

Doctor copays

Prescription copays

(all paid with after tax dollars)

COPAY


What’s the Risk?

$3,000 Deductible

Doctor copays

Prescription copays

(all paid with after tax dollars)

$3,000 Deductible

$600 deposited in HSA

$2,400 Total Exposure

(all paid with pre-tax dollars)

COPAY HSA


Example 1

Low Utilizer


Low Utilizer

Annual physical: $0

No other doctor visits or prescriptions

No refund from insurance company

COPAY


Low Utilizer

Annual physical: $0


$600 in HSA to use for dental, vision, or future

medical expenses

HSA

Annual physical: $0


No refund from insurance company

COPAY


Qualified Medical Expenses


http://images.google.com/imgres?imgurl=http://i.ehow.com/images/GlobalPhoto/Articles/5172880/white-teeth_Full.jpg&imgrefurl=http://www.ehow.com/how_5172880_use-teeth-whitening-products.html&usg=___Bx4mc8icwCpuVmgng0IPsI5wPk=&h=300&w=420&sz=14&hl=en&start=51&tbnid=PfrCmqFYZGU7XM:&tbnh=89&tbnw=125&prev=/images%3Fq%3Dteeth%26gbv%3D2%26ndsp%3D20%26hl%3Den%26sa%3DN%26start%3D40

http://images.google.com/imgres?imgurl=http://cdn-write.demandstudios.com/upload//6000/100/30/7/136137.jpg&imgrefurl=http://www.physical-fitness-and-health-articles.com/articles/14075-How-to-Apply-Eye-Shadow-for-Blue-Eyes.html&usg=__ymrd1j0tLlctZ_eruuIkpfLTCuw=&h=1117&w=1441&sz=224&hl=en&start=33&tbnid=io0LA5nnQVdYPM:&tbnh=116&tbnw=150&prev=/images%3Fq%3Dbeautiful%2Bblue%2Beye%26gbv%3D2%26ndsp%3D20%26hl%3Den%26sa%3DN%26start%3D20

http://images.google.com/imgres?imgurl=http://www.photoshopwidows.org/images/RightEar.jpg&imgrefurl=http://www.photoshopwidows.org/articles-ruth/2005-may.html&usg=__iYfq2LujYRCkQ_cXj_b0vYpihhI=&h=480&w=480&sz=26&hl=en&start=18&tbnid=u4IT1dGVDg12zM:&tbnh=129&tbnw=129&prev=/images%3Fq%3Dear%26gbv%3D2%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.southorangewellness.info/chiropractichealth.jpg&imgrefurl=http://drbenadkins.com/tag/chiropractor/&usg=__bB0mLJ4o4Av28TW7XxdGl7ozDik=&h=256&w=280&sz=8&hl=en&start=11&tbnid=Y3Sx52xXoAYfwM:&tbnh=104&tbnw=114&prev=/images%3Fq%3Dchiropractor%26gbv%3D2%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.miraclemateusa.com/Images/Cobra-Insurance.jpg&imgrefurl=http://www.miraclemateusa.com/Vacuum-Cleaner-Links.htm&usg=__CEpcw3RGy9M1QJngc5s8p7uSNXY=&h=71&w=175&sz=12&hl=en&start=5&tbnid=92g1RJj8KcxyHM:&tbnh=41&tbnw=100&prev=/images%3Fq%3Dcobra%2Binsurance%26gbv%3D2%26hl%3Den

http://images.google.com/imgres?imgurl=http://earningextramadeeasy.com/blog/wp-content/uploads/2009/01/080606_unemployment_generic.jpg&imgrefurl=http://earningextramadeeasy.com/blog/%3Fp%3D264&usg=__RBCCWMI4NGqsyRQf8ykcZfSrlhw=&h=338&w=640&sz=58&hl=en&start=14&tbnid=77JL18FcZCkAEM:&tbnh=72&tbnw=137&prev=/images%3Fq%3Dunemployment%26gbv%3D2%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.pirateplayships.net/images/medicare-part-b.gif&imgrefurl=http://www.pirateplayships.net/images/&usg=__66Q6cFcJUwb8CfCjY3v5IK3a62k=&h=216&w=150&sz=7&hl=en&start=1&tbnid=3c5NGai5nSukRM:&tbnh=107&tbnw=74&prev=/images%3Fq%3Dmedicare%2Bpart%2Bb%26gbv%3D2%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.dhhs.state.nc.us/aging/images/ltc1.gif&imgrefurl=http://www.dhhs.state.nc.us/aging/ombud.htm&usg=___jLsKYahFug8fvGzEsQNtSmKxcE=&h=279&w=293&sz=6&hl=en&start=2&tbnid=MnYfKSc9ZAJvYM:&tbnh=110&tbnw=115&prev=/images%3Fq%3Dltc%26gbv%3D2%26hl%3Den

http://images.google.com/imgres?imgurl=http://3.bp.blogspot.com/_EM1NGBqKd_g/SDvDguZL5EI/AAAAAAAAANI/lkZBuItju-4/s400/otc%2Bpain%2Bmeds.jpg&imgrefurl=http://pinkpurlgurl.blogspot.com/2008/05/pitfalls-of-over-counter-pain.html&usg=__Gudcxk82jBXgx2ivr5F-4hQDkQQ=&h=300&w=400&sz=41&hl=en&start=7&tbnid=9MEv_qjpLlhcjM:&tbnh=93&tbnw=124&prev=/images%3Fq%3Dover%2Bthe%2Bcounter%26gbv%3D2%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.freedomhealthnet.com/blog/uploaded_images/childhealth-794095.JPG&imgrefurl=http://www.freedomhealthnet.com/blog/2007/09/health-insurance-image.html&usg=__M4CkDWu2n34fzarh9vOFHFBT-9k=&h=1600&w=1600&sz=240&hl=en&start=2&tbnid=QZ1Kopjznh4M0M:&tbnh=150&tbnw=150&prev=/images%3Fq%3Dchild%2Bhealth%26gbv%3D2%26hl%3Den

http://images.google.com/imgres?imgurl=http://www.drfarahi.com/images/child_in_dental_seat.jpg&imgrefurl=http://www.drfarahi.com/dr_farahi.htm&usg=__S7TzUvmMTG5kawGhAi0xiKVMAb8=&h=291&w=413&sz=20&hl=en&start=48&tbnid=0o0tmtXfvvCVOM:&tbnh=88&tbnw=125&prev=/images%3Fq%3Dchild%2Bdental%26gbv%3D2%26ndsp%3D20%26hl%3Den%26sa%3DN%26start%3D40

Great R.O.I. for Employers

Employers will get their money’s worth

Low Utilizers will appreciate their benefits

Employees will be happier


http://images.google.com/imgres?imgurl=http://1.bp.blogspot.com/_K1NeyvHAGAk/SC258GfF6LI/AAAAAAAACkg/KqNBx3loH38/s400/Thank%2BYou%2BBodies.jpg&imgrefurl=http://www.sdccs-oasis.blogspot.com/&usg=__fnHgHnB0gLNBI9Q2SmBedMHVKic=&h=288&w=375&sz=38&hl=en&start=11&tbnid=ot5npE6dmrIQVM:&tbnh=94&tbnw=122&prev=/images%3Fq%3Dthank%2Byou%26gbv%3D2%26hl%3Den

The Winner and New Champion

HSA

COPAY

HSA


Example 2

Medium Utilizer


Medium Utilizer

Annual physical: $0 Annual physical: $0

COPAY HSA


Medium Utilizer

Annual physical: $0

2 sick visits: $60

COPAY


Medium Utilizer

Annual physical: $0

2 sick visits: ???

HSA

Annual physical: $0

2 sick visits: $60

COPAY


Price Transparency Tools


www.FirstHorizonMsaver.com


Office Visit, Established Patient, Level 2 (zip code 32807)Minor problem requiring a limited exam and treatment – approximately 10 minutes with the doctor

$70

Office Visit, Established Patient, Level 3 (zip code 32807)Moderate problem requiring counseling and treatment, may require coordination of care with other providers – approximately 15 minutes with the doctor

$113HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

Medium Utilizer

Annual physical: $0

2 sick visits: $60

Annual physical: $0

COPAY HSA

2 sick visits: $226


Medium Utilizer

Annual physical: $0

2 sick visits: $60

Synthroid ($10) $120

Atenolol ($8) $96

Lipitor ($60) $720

COPAY


Medium Utilizer

Annual physical: $0

2 sick visits: $60


Atenolol ($8) $96

Lipitor ($60) $720

COPAY


Annual physical: $0

2 sick visits: $226

Synthroid

Atenolol

Lipitor

HSA

?



www.MyFloridaRx.com



www.FirstHorizonMsaver.com



www.Humana.com

Synthroid (100 MCG)


$26.09 $20.35

$20.35

$20.74

$22.83

$20.79

$18.24

Atenolol (100 MG)


Not Listed $6.07

$6.07

$8.99

$10.49

$6.32

$7.65

Lipitor (10 MG)


Not Listed $95.27

$95.27

$97.41

$99.95

$96.59

$88.80

Medium Utilizer

Annual physical: $0

2 sick visits: $60


Atenolol ($8) $96

Lipitor ($60) $720

COPAY


Annual physical: $0

2 sick visits: $226


Atenolol ($8) $96

Lipitor ($89) $1,068

HSA

Medium Utilizer

Annual physical: $0

2 sick visits: $60


Atenolol ($8) $96

Lipitor ($60) $720

Total $996

COPAY


Annual physical: $0

2 sick visits: $226


Atenolol ($8) $96

Lipitor ($89) $1,068

Total $1,606

HSA

Medium Utilizer

Total: $996

COPAY


Total: $1,606

minus HSA: $ 600

HSA

Medium Utilizer

Total: $996

Total (after tax): $996

COPAY


Total: $1,606

minus HSA: $ 600

Total: $1,006

HSA

Federal Income Tax Brackets 2010


Tax Rate Most Single Filers Married Couples Filing Jointly

10% Not over $8,375 Not over $16,750

15% $8,375 – $34,000 $16,750 – $68,000

25% $34,000 – $82,400 $68,000 – $137,300

28% $82,400 – $171,850 $137,300 – $209,250

33% $171,850 – $373,650 $209,250 – $373,650

35% Over $373,650 Over $373,650

Medium Utilizer

Total: $996

COPAY


Total: $1,606

minus HSA: $600

minus Tax Savings $400 (25%)

HSA

FICA Tax Rate 2010


6.2% of first $106,800

1.45% with no limit

7.65% matched by employerTOTAL

Texas Sales Tax Holiday



Medium Utilizer

Total: $996


COPAY


Total: $1,606

minus HSA: $600


Total: $606

HSA

Medium Utilizer

Total: $996


COPAY


Total: $1,606

minus HSA: $600


Total: $606

Savings vs. Copay: $390

HSA

Medium Utilizer

Total: $996


Remaining Risk: $3,000 + add’l copays

COPAY


Total: $1,606

minus HSA: $600


Total: $606

Savings vs. Copay: $390

Remaining Risk: $1,394

HSA

The Winner and Still Champion

HSA

COPAY

HSA


Example 3

High Utilizer


High Utilizer

Annual physical: $0

COPAY


High Utilizer

Annual physical: $0

4 sick visits: $120

COPAY


High Utilizer

Annual physical: $0

4 sick visits: $120

1 Generic ($10) $120

1 Brand ($40) $480

1 Non-Form. ($60) $720

COPAY


High Utilizer

Annual physical: $0

4 sick visits: $120

1 Generic ($10) $120

1 Brand ($40) $480

1 Non-Form. ($60) $720

1 Hospital Visit: $3,000

COPAY


High Utilizer

Annual physical: $0

4 sick visits: $120

1 Generic ($10) $120

1 Brand ($40) $480

1 Non-Form. ($60) $720


Total: $4,440

COPAY


High Utilizer

Annual physical: $0

4 sick visits: $120

1 Generic ($10) $120

1 Brand ($40) $480

1 Non-Form. ($60) $720


Total: $4,440

Deductible: $3,000

COPAY HSA


High Utilizer

Total: $4,440

Deductible: $3000

minus HSA: $600

COPAY HSA


High Utilizer

Total: $4,440

Deductible: $3000

minus HSA: $600

minus tax savings: $750

COPAY HSA


High Utilizer

Total: $4,440

Total (after tax): $4,440

Deductible: $3,000

minus HSA: $600



COPAY HSA


High Utilizer

Total: $4,440


Deductible: $3,000

minus HSA: $600



Savings: $2,790

COPAY HSA


High Utilizer

Total: $4,440


Remaining Risk: Copays

Deductible: $3,000

minus HSA: $600



Savings: $2,790

COPAY HSA


High Utilizer

Annual physical: $0

6 sick visits: $180

2 Generic ($10) $240

2 Brand ($40) $960

2 Non-Form. ($60) $1,440


Total: $5,820

COPAY


High Utilizer

Total: $5,820


Deductible: $3,000

minus HSA: $600



Savings: $4,170

COPAY HSA


High Utilizer

Total: $5,820


Remaining Risk: Copays

Deductible: $3,000

minus HSA: $600



Savings: $4,170

Remaining Risk: $0

COPAY HSA


Knockout!


The Undisputed Champion

HSA

COPAY

HSA


This is the money you could be saving by switching to an HSA


Note: You could also save this money by switching to Geico.

Dual Option

Choice is an important part of consumerism

At renewal, employees will do the selling


Coinsurance Plans

making a comeback?

100% Plans (no coinsurance after deductible) are a no-no.They encourage over-utilization, not consumerism.

When possible, use coinsurance to keep the consumer’s money involved in higher-dollar claims.

HSA s: Do the Math | Copyright 2010 Eric Johnson

The Science of HSAs


Department of Treasury

www.treas.gov/offices/public-affairs/hsa/

• “All About HSAs” booklet• HSA Basics Tri-Fold• Frequently Asked Questions


http://www.treas.gov/offices/public-affairs/hsa/

http://www.disabilityinfo.gov/digov-public/public/ImageLoad.do?Id=5013

Internal Revenue Service

www.irs.gov

• Publication 502• Form 8889


http://www.treas.gov/offices/public-affairs/hsa/

Your HSA Administrator


Get the accounts set up

Get the accounts funded

Answer questions

Provide assistance

What if I Have Questions?



www.TheBenefitsBlog.com

Eric Johnson’s Contact Info:

817-366-7536 cell

[email protected]

(my blog)

Connect with me on

http://www.linkedin.com/in/ericjohnson262

Eric’s Contact Info

http://www.thebenefitsblog.com/




http://www.linkedin.com/in/ericjohnson262

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Questions?

HSA s: Frequently Asked Questions | Copyright 2010 Eric Johnson

Thank You!!!

HSA s: Frequently Asked Questions | Copyright 2010 Eric Johnson

Documents

Art or Science? HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc