1. CONSUMER DRIVEN HEALTH CARE
Are You Up to Speed?
Presented By:
John V. Stewart, MSM, CDHC
Stewart’s Insurance Depot
S.E. Georgia 912.434.2090
N.E. Florida 904.729.4025
Metro Indianapolis, IN 317.570.1271
Metro Cincinnati, OH 513.868.0040
Nationwide 866.203.5097
3. Stewart's Insurance Depot
Consumer Awareness
Some myths and facts:
Health insurance companies make lots of money on us!
Fact: Health Insurance Companies make 3 cents on
every dollar.
Fact: The insurance industry is the only industry
required by law to make a profit.
So where does our insurance dollars go?
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4. Stewart's Insurance Depot
So where does our insurance dollars go?
If 87 cents of every major medical insurance dollar goes to covering us, what can I
do to help control my costs and keep my insurance premiums as low as possible?
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5. Stewart's Insurance Depot
Your personal Survey on Major Medical Insurance
Cost savings start with what kind of major medical plan I am looking to purchase.
The plan will cover with ages of:
I would like a ( local, regional or national ) insurance carrier
What amount do I want to pay as a deductible?
Do I want a coinsurance amount (what % 90/10, 80/20,
70/30, 50/50)?
How many times a year do I go to the doctor?
Do I want a plan that has doctor copays?
How many prescriptions do I purchase a year?
Do I want a plan that has prescription drug coverage?
Do I want a tax advantage plan with qualifying high
deductible insurance? Y or N
How much am I willing to put into an HSA account/year?
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6. Stewart's Insurance Depot
How much do you want to spend on Major Medical Insurance?
George Ready (Age 30) 32034
Single
Plan Type Deductible Coinsurance Total Out of Pocket Copay Premium % Cost Difference Cost of Copay/year
Saver $2,500.00 $3,000.00 $5,500.00 N/A $70.80 Base of % Base No Copay
80% Plan $2,500.00 $3,000.00 $5,500.00 N/A $106.68 33.63%
Copay Plan $2,500.00 $3,000.00 $5,500.00 $35.00 $110.57 35.97% $477.24
100% Plan $2,500.00 $0.00 $2,500.00 N/A $127.09 44.29%
Single HSA * $2,500.00 $0.00 $2,500.00 N/A $128.02 44.70%
Nancy Ready (Age 30) 32034
Single
Plan Type Deductible Coinsurance Total Out of Pocket Copay Premium % Cost Difference Cost of Copay/year
Saver $2,500.00 $3,000.00 $5,500.00 N/A $91.94 Base of % Base No Copay
80% Plan $2,500.00 $3,000.00 $5,500.00 N/A $140.08 34.37%
Copay Plan $2,500.00 $3,000.00 $5,500.00 $35.00 $166.98 44.94% $900.48
100% Plan $2,500.00 $0.00 $2,500.00 N/A $165.13 44.32%
Single HSA * $2,500.00 $0.00 $2,500.00 N/A $167.91 45.24%
George Ready & Family (Parents Age 30) 32034
Plan Type Deductible Coinsurance Total Out of Pocket Copay Premium % Cost Difference Cost of Copay/year
Saver (2) $5,000.00 $6,000.00 $11,000.00 N/A $268.83 Base of % Base No Copay
80% Plan (2) $5,000.00 $6,000.00 $11,000.00 N/A $270.68 0.68%
Copay Plan (2) $5,000.00 $6,000.00 $11,000.00 $35.00 $506.15 46.89% $2,847.84
Plan 100 (2) $5,000.00 $0.00 $5,000.00 N/A $481.89 44.21%
Family HSA (1)* $5,000.00 $0.00 $5,000.00 N/A $451.67 40.48%
Gearge Ready & Wife (Age 60)
32034
Plan Type Deductible Coinsurance Total Out of Pocket Copay Premium % Cost Difference Cost of Copay/year
Saver (2) $10,000.00 $6,000.00 $26,000.00 N/A $285.72 Base of % Base No Copay
80% Plan (2) (2) $10,000.00 $6,000.00 $26,000.00 N/A $374.78 23.76%
Copay Plan (2) $10,000.00 $6,000.00 $26,000.00 $35.00 $445.28 35.83% $1,914.72
Plan 100 (2) $10,000.00 $0.00 $20,000.00 N/A $443.43 35.57%
Family HSA (1)* $10,000.00 $0.00 $10,000.00 N/A $521.38 45.20%
() Indicates number of persons needed to meet deductible requirement
* HSAs have benefit of a health savings account and tax deduction of income and 0 tax when used for IRS acceptable major medical procedures and Rxs
Note: the plans outside the HSAs and 0 coinsurance plans have larger out-of-pockets
Look what it costs to have an office visit copay and other bells and whistles.
Note: rich benefit plan 6
8. Stewart's Insurance Depot
Why HSA Qualified Plans?
• You are in control of how you use your health care dollars.
• Become more involved in managing your cost of care.
• Learn how to shop for the best prices for your care.
• Your tax-advantage contributions to your HSA account grow over
time.
• It is your money to use tax-free for qualified medical expenses.
• There is no “use it or lose it” philosophy. If you don’t use it, save it
for next year. Or better yet, for retirement.
• After age 65, HSA funds can be used for non-qualified expenses and
only income tax is assessed.
From HSABank website 8
9. Stewart's Insurance Depot
An HSA Growth Illustration
Income tax reduction anyone? The Happy family with George age 30 and Susan age
30 have changed from a conventional major medical
Contribution 2011 Limits Single Family plan to a High deductible HSA qualified family plan.
Minimum Deductible $1,200 $2,400 No kids yet, but who knows…. Remember
HSA/HDHP family plans; all insured members have
Maximum Out-of-Pocket $5,950 $11,900
access to these funds for medical expenses as
Contribution Limit $3,050 $6,150
allowable by the IRS. When George and Susan
Catch-up Contribution (55 or older) $1,000 $1,000 convert to Medicare at age 65, here is what they
have.
Estimates Below for this illustration:
Enter your average contribution per year: $ 4,000.00
Enter your average medical expenses per year: $ 850.00
How many years will your account accumulate? 35
Enter your federal tax bracket: 28%
Enter your state tax: Florida no state income tax
Enter your bank interest rate: 3%
Results of the Happy family having a HDHP/HSA:
Future Value Calculator
Net Contributions: $110,250.00
Net Contributions Per Year: $3,150.00
Tax Savings on Contributions: $30,870.00
Tax Savings on tax-deferred growth: $22,457.56
Future Value: $190,455.56 From HSABank website
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