A ll B usiness I nsurance S ervices Were All About Your Business Consumer Driven Major Medical...
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Transcript of A ll B usiness I nsurance S ervices Were All About Your Business Consumer Driven Major Medical...
All Business Insurance Services
“We’re All About Your Business” Consumer Driven Major
Medical Insurance
Presented byDon LoperPresident
All Business Insurance Services
Registered Representative
Multi-State Licensed Broker
Click on screen to advance
Call Now for Your Free ConsultationToll Free 866-907-2247
What you are about to learn about traditional
doctor copay plans
Vs
IRS qualified
HDHP (High Deductible Health Plan)
a.ka.
HSA (Health Savings Account)
Definitely will change the way you purchase Medical
Insurance for your family!
Tip: Did you know “accidental” injuries are covered on “first dollar” bases or deductible is waived with some HAS’s ?
Call Now for Your Free Consultation
Toll Free 866-907-2247
What is an IRS Qualified High Deductible Health Plan?
A QHDHP meets the federal government IRS plan Design Specifications:
No copays for services (except for wellness visits)
Predefined range of out of pocket exposure
Family deductible is accumulative
Under an QHDHP, all benefits are subject to a Deductible:
Except coverage for preventative care
The QHDHP still utilizes a PPO network
A network manages healthcare costs
Federal HSA Legislation Signed into Law December 2003Federal Law (IRS) establishes deductibles amount and Max out of pocket expenses
Call Now for Your Free Consultation
Toll Free 866-907-2247
The Qualified High-Deductible Health
(QHDHP) Major MedicalInsurance Plan providing Protection
the insurance
HSA tax deferred interest bearing Account than can
be used to pay for out of pocket healthcare expenses
There are 2 components of an HSA
Satisfied
All Business Insurance
Client !
Call Now for Your Free Consultation
Toll Free 866-907-2247
Traditional Doctor Copay PlansImportant Term’s explained
Question
Do you know “how many” family members must Pay
their individual deductible for your plan?
1 - A deductible is the amount of out-of-pocket expenses you have to pay each year before your health plan kicks in and starts paying for services.
2 – Co-insurance is a temporary “sharing” of costs between you and Insurance company over the next $10,000 or $15,000 in medical bills.
Co-Insurance Example: 80/20/$10,000After your deductible is met, the next $10,000 in bills the insurance company will pay 80% or
$8,000, and you agree to pay 20% or $2,000.
Call Now for Your Free Consultation
Toll Free 866-907-2247
Did you Know…Your health insurance Copay Plan requires 2 or more family members to pay the
individual deductible to reach the family deductible limit.
(Check your policy brochure or contract.)
Some companies even require x 3 family members.
99% of Insurance Companies require x 2 or more family individual deductibles be met,
some even require x 3 members pay.
So how do you arrive at your families “Total or Maximum” Out of
Pocket expense?
Call Now for Your Free Consultation
Toll Free 866-907-2247
“Total or Maximum” Out of pocket cost “including” your Co-insurance!
(Example using Coinsurance plan of 80/20/10 = $2,000 per person x 2)
Max Out of PocketIndividual Deductible x 2
$2,500 x 2 = $5,000
$3,500 x 2 = $7,000
$5,000 x 2 = $10,000
$7,000 x 2 = $14,000
Individual Co-insurance x 2
$2,000 x 2 = $4,000
$2,000 x 2 = $4,000
$2,000 x 2 = $4,000
$2,000 x 2 = $4,000
+ =
+
+
+
+
==
=
=
$ 9,000
$11,000
$14,000
$18,000
Remember if your “Individual” Deductible quoted you is $3,500
Your family “Max out of Pocket” is
$11,000
Call Now for Your Free Consultation
Toll Free 866-907-2247
SURPRISED ?Maximum “out of pocket” costs are “RARELY” ever discussed by agent to their
clients. Or the agents themselves have no idea.
Now consider if “you” were sold a x 3 Individual deductible Policy! *Yes they are rampant and exist and sold as “low premium” plans, and why not?
Since consumer will “pay” tens of thousand in the end!
Individual Deductible x 3
$2,500 x 3 = $7,500
$3,500 x 3 = $10,500
$5,000 x 3 = $15,000
$7,000 x 3 = $21,000
Individual Co-insurance x 3
$2,000 x 3 = $6,000
$2,000 x 3 = $6,000
$2,000 x 3 = $6,000
$2,000 x 3 = $6,000
+ =
+
+
+
+
==
=
=
$13,500
$16,500
$21,000
$27,000
Max Out of Pocket
How can an HSA help ?
Call Now for Your Free Consultation
Toll Free 866-907-2247
HSA or HDHP = An affordable health solution for you.
Now that you know how to calculate your “Maximum” out of pocket expense, let’s see how different the HSA plan works to reduce your risk of catastrophic expenses !
All IRS HDHP plan “Family Deductibles” have a common or aggregate benefit or an “Embedded” feature.
Common – meaning “all” family members “chip” away at “one common” family deductible
Embedded – meaning benefits are paid by insurance company once any “one” member reaches ½ (half) of the family deductible.
Tip: Did you know 82% of Americans pay less than $1,000 per year in health expenses?
Call Now for Your Free Consultation
Toll Free 866-907-2247
Traditional Copay vs HSA = Total Out of Pocket comparison.
Traditional
80/20/$10,000 coinsurance Plan
Individual Deductible + Coinsurance x 2
$5,000 Ind Ded x 2 …..= $10,000
$2,000 Co-Ins x 2 ……= $ 4,000
Total ……………….. = $14,000
HSA (Common)
100 % Plan
Family (common)Deductible
$5,000……= $5,000
n/a……….. = $0
Total ……...= $5,000
*Premium = $448.24 Premium = $322.88
*Premium based on actual husband (44 –smoker) & Wife (43-non smoker) in IL. Rates will vary from state to state. Contact us for individual comparison for you.
Call Now for Your Free Consultation
Toll Free 866-907-2247
Traditional Copay vs HSA = Total Out of Pocket comparison.
*Annual savings can be used to “FUND” the tax deferred, interest bearing HSA account.
Savings for this Husband & Wife:
$448.24 - $322.88 = $125.36 mo.Annual ……………= $1,504.32 Yr.
Reduction in Maximum Out of Pocket Expenses:$14,000 - $5,000 = $9,000 savings
They get to keep more of their money !
Traditional
80/20/$10,000 coinsurance Plan
Individual Deductible + Coinsurance x 2
$5,000 Ind Ded x 2 …..= $10,000
$2,000 Co-Ins x 2 ……= $ 4,000
Total ………………….. = $14,000
HSA (Common)
100 % Plan
Family (common)Deductible
$5,000……= $5,000
n/a……….. = $0
Total ……...= $5,000
*Premium = $448.24 Premium = $322.88
Call Now for Your Free Consultation
Toll Free 866-907-2247
“The definition of insanity is doing the
same thing over and over again and
expecting different results.”
–Albert Einstein
Isn’t it time you look into an HSA?
See IRS Publication 502 for complete list of eligible expenses.
“Agents who don’t discuss the benefits of an HSA with consumers “do not” have the training or knowledge of how they work.
When given all their options, consumers overwhelmingly choose not to pay higher premiums, and more than $6,000 to $8,000 more out of pocket to insurance companies for the exact same benefits HSA’s provide. “
Don Loper Multi-State Licensed Health Insurance Broker
Call Now for Your Free Consultation
Toll Free 866-907-2247
Tax Deductions:
Premium is deducted annually, and “any” money placed in HSA is “another” tax deduction against income !
HSA’s Work
Investment in future healthcare expenses
Unused HSA funds can be used as a retirement account after 65
Establishes incentive to save for medical expenses
Puts Consumers in control of their money
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Call Now for Your Free Consultation
Toll Free 866-907-2247