ADVISORS - Health Savings...General Brochure, Employer Benefits Brochure, Member Benefits Brochure...

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ADVISORS information

Transcript of ADVISORS - Health Savings...General Brochure, Employer Benefits Brochure, Member Benefits Brochure...

Page 1: ADVISORS - Health Savings...General Brochure, Employer Benefits Brochure, Member Benefits Brochure and Infographics How do I set up an employer with HealthSavings? Either you or the

ADVISORSinformation

Page 2: ADVISORS - Health Savings...General Brochure, Employer Benefits Brochure, Member Benefits Brochure and Infographics How do I set up an employer with HealthSavings? Either you or the

As Baby Boomers retire, the retirement and healthcare industries are intersecting. Fueled by concerns about rising healthcare costs, more and more people are turning to investment HSAs to save and invest for their future healthcare expenses. In fact, research from Devenir projects HSA investment assets to grow to $8.3 billion by 2017:

NATIONAL HSA ASSETS (in billions)1

Investments

Deposits

2006

$0.1 $0.2

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

$1.6 $3.2

$0.2$0.4

$0.9$1.1

$1.7

$2.3

$3.2

$4.4

$5.3 $6.8 $9.0 $11.1$13.7 $17.1

$21.0$25.5

$30.2

$35.3

$8.3

$6.1

Advisors are an essential part of our

HealthSavings team. We know you want

to present the best options for your

clients. Our investment health savings

account (HSA) comes with our collection

of educational tools and person-to-person

customer service.

WHY TALK TO YOUR CLIENTS ABOUT HSAs?

1 Source: Estimate derived from 2014 Year-End Devenir HSA Market Survey, press releases, previous market research and market growth rates.

Page 3: ADVISORS - Health Savings...General Brochure, Employer Benefits Brochure, Member Benefits Brochure and Infographics How do I set up an employer with HealthSavings? Either you or the

AVERAGE END-OF-YEAR HSA BALANCE2 Among Accounts With

Contributions and Presence

of Investment Account, by

Year HSA Was Opened, 2014

AVERAGE HSA END-OF-YEAR ACCOUNT BALANCE2 by Presence of Investment Account, 2014

In addition, EBRI reports that average account balances are higher ($10,000 or more) with the presence of an investment HSA.

a Archer Medical Savings Account2 Source: Employee Benefits Research Institute (EBRI) Issue Brief No. 416, July 2015

sales, construction, management, architecture and engineering

45%

$9,927

$6,063

$6,004

$4,755

$4,057

$3,974

$3,501

$3,085

$2,228

$1,176

$895

$25,552

$19,269

$15,452

$11,766

$13,854

$15,442

$14,272

$10,003

$7,781

$7,421

$6,544

$- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000

2004 or Earlier (includes MSAa

rollovers)

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

EO

Y20

14 A

vera

ge

Acc

ou

nt

Bal

ance

5%

37%

15% 15%

8%

5%3%

5%

2%

5%4%

39%

15% 15%

8%

5%3%

5%

2%4%

0%

5%3%

7%8% 8%

7%

15%

10%

37%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

$0 $10,000 or more

$7,500–$9,999

$5,000–$7,499

$4,000–$4,999

$3,000–$3,999

$2,000–$2,999

$1,000–$1,999

$500–$999$1–$499

Balance

sales, construction, management, architecture and engineering

45%

$9,927

$6,063

$6,004

$4,755

$4,057

$3,974

$3,501

$3,085

$2,228

$1,176

$895

$25,552

$19,269

$15,452

$11,766

$13,854

$15,442

$14,272

$10,003

$7,781

$7,421

$6,544

$- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000

2004 or Earlier (includes MSAa

rollovers)

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

EO

Y20

14 A

vera

ge

Acc

ou

nt

Bal

ance

5%

37%

15% 15%

8%

5%3%

5%

2%

5%4%

39%

15% 15%

8%

5%3%

5%

2%4%

0%

5%3%

7%8% 8%

7%

15%

10%

37%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

$0 $10,000 or more

$7,500–$9,999

$5,000–$7,499

$4,000–$4,999

$3,000–$3,999

$2,000–$2,999

$1,000–$1,999

$500–$999$1–$499

Balance

With Investment Account

Without Investment Account

Total

Without Investment Account

With Investment Account

Page 4: ADVISORS - Health Savings...General Brochure, Employer Benefits Brochure, Member Benefits Brochure and Infographics How do I set up an employer with HealthSavings? Either you or the

WHAT DOES THIS MEAN FOR ADVISORS?

For advisors, this means opportunity. By adding an investment HSA to your products and services, you regain assets under management (AUM) that may be lost to Baby Boomers withdrawing funds en masse from their retirement plans. In fact, the Wall Street Journal recently reported that 401(k) withdrawals began exceeding contributions in 2013, reducing AUM for many advisors.2

With retirement plan assets in decline, regaining AUM from other sources becomes that much more important.

Enter the HealthSavings investment HSA. We provide advisors with the opportunity to offer clients an investment HSA with fund selections similar to those offered under their retirement plans. This allows advisors to choose funds for their clients, while providing clients with the means to save and invest tax-free for their healthcare and retirement expenses.

Save smarter with first dollar investingAdvisors generally recommend saving efficiently for the future. That means investing early and letting money grow over time through accumulation and compounding interest.

HealthSavings is one of the few HSA providers that allows first dollar investing. This means that clients can begin investing right away, without having to build or maintain balances of $1,000 – $2,500 like the competition requires. By offering this option to your clients, you give them the freedom to save efficiently for future healthcare expenses, much the same way they’re able to save for retirement through an IRA or other retirement plan.

How much should be saved for retirement healthcare expenses?On average, Medicare covers about 59% of healthcare costs. So, retirees can expect to cover the remaining 41% from their retirement savings. Studies indicate that the average couple retiring at 65 years old today will need anywhere from $147,000 – $245,000 to cover these expenses.

Because HSAs offer triple tax benefits, these accounts provide the most efficient and cost-effective way to save for future healthcare expenses. Funds go into the HSA pre-tax (or tax-deductible, if contributed after tax). Investment earnings are not taxed in most states. And funds can be withdrawn tax-free for qualified healthcare expenses.

2010 2011

$0

$10

$20

$30

$40

$50

-$15

-$10

-$5

$0

$5

$10

$15

$20

$25

$30

59%

41%

Medicare covers about 59% of healthcare costs. So, retirees can expect to cover the remaining 41%

RETIREMENTHEALTHCARE

EXPENSES

Remainingcosts

Medicarecovers

$0

$10

$20

$30

$40

$50

-$15

-$10

-$5

$0

$5

$10

$15

$20

$25

$30

59%

41%

Medicare covers about 59% of healthcare costs. So, retirees can expect to cover the remaining 41%

RETIREMENTHEALTHCARE

EXPENSES

Remainingcosts

Medicarecovers

2012 2013

401(K) CONTRIBUTIONS & WITHDRAWALS (in billions)3

3 Source: BrightScope. “Money Flows Out of 401(k) Plans as Baby Boomers Age,” Wall Street Journal, June 15, 2015

Page 5: ADVISORS - Health Savings...General Brochure, Employer Benefits Brochure, Member Benefits Brochure and Infographics How do I set up an employer with HealthSavings? Either you or the

IS YOUR CLIENT A CANDIDATE FOR AN HSA?

If you answer “yes” to the questions below, you can be assured that your client/employer

is a good candidate for a HealthSavings HSA.

Do your clients:

Have concerns about health care expenses–both today and for the future?

Offer employees a rich benefits package?

Have an HSA-qualified high-deductible health plan, or are they considering one?

Currently offer employees another HSA?

Page 6: ADVISORS - Health Savings...General Brochure, Employer Benefits Brochure, Member Benefits Brochure and Infographics How do I set up an employer with HealthSavings? Either you or the

Reach out to clients about investment HSAs Not sure how to approach clients about HSAs? Here are a few script ideas to get you started:

• Many clients have expressed concern about the cost of healthcare, particularly during retirement. Do you have concerns as well?

• How do you currently address this concern at your company / with your employees? (e.g., offer an HSA-qualified health plan, offer an HSA, contribute to HSA, pay healthcare premiums, offer an HRA, etc.)

• Have you ever considered an investment HSA? Particularly, an HSA that allows first dollar investing?

• Investment HSAs allow individuals to save and invest for their current and future healthcare expenses. Individuals select investments and let the money grow over time, similar to IRAs and other retirement plans. Now, unlike these plans, HSAs allow individuals to withdraw funds at any time, tax-free to pay for qualified healthcare expenses. So, you can see that HSAs offer a lot of flexibility.

• Why don’t we schedule a time to discuss this further so that I can address your specific questions, concerns, etc.?

Build your investment HSA with HealthSavingsReady to build your customized investment HSA? Contact us today! We’ll walk you through the steps needed to set up

your HSA as well as the timeline for implementation. A sample timeline is provided below:

Advisor:

• Inquire about custom HSA• Determine fund line up• Determine investment fees• Send logo and company

description to HealthSavings

HealthSavings:

Finalize set up and materials

Launch

Advisor:

Review HSA set up and materials

HealthSavings:

Set up custom HSA, develop educational materials,webpages, etc.

MONTH MONTH MONTH

13 2

Page 7: ADVISORS - Health Savings...General Brochure, Employer Benefits Brochure, Member Benefits Brochure and Infographics How do I set up an employer with HealthSavings? Either you or the

FREQUENTLY ASKED QUESTIONS

I already offer HSAs. Why should I offer a HealthSavings HSA?

In addition to the benefits an HSA provides, HealthSavings is independent of the insurance companies. So you and your clients can choose the best HSA value, rather than what the insurance company thinks is best. If/when your client changes insurance companies, they do not also have the time or expense of switching HSAs.

Plus, we make it easy to have your HSA investment choices mirror those on the retirement plan, so it’s easy to select HSA investments that help you save for future healthcare expenses. Not only that, we offer first dollar investing, so you can begin saving for the future right away.

At HealthSavings we do far more for our partners than simply provide a product for you to offer your clients. We also provide you:

Educational SupportIn addition to a collection of infographics and brochures specific to partners, employers and members, our HSA-certified advisors are also available to educate you and your clients. We can work behind the scenes or with your clients directly to answer any questions and/or facilitate the account set-up process.

Person-to-person Customer ServiceYou can quickly connect to a knowledgeable person to answer specific questions you or your clients might have.

Partner RegistrationAdvisors have the option to become a HealthSavings partner. As a partner, you will receive communications throughout the year with important updates for your clients, HSA information and tips, ways to save on healthcare expenses, product updates and more. Register at: HealthSavings.com/Partners/Register

We’ve compiled a list of questions many advisors often have. However, if you still have concerns or would like to know more, we’re here to answer.

See also all the benefits of our HealthSavings HSA outlined in our:General Brochure, Employer Benefits Brochure, Member Benefits Brochure and Infographics

How do I set up an employer with HealthSavings?

Either you or the employer can complete our request for proposal at HealthSavings.com/Partners/Request-for-proposal, our group enrollment form at HealthSavings.com/Group-Enrollment or contact a member of our sales team at HealthSavings.com/Sales. After your request is received, HealthSavings works directly with you and the employer to provide details and pricing, and enroll employees through an eligibility file (preferred) or individual enrollment process.

Does HealthSavings require a minimum balance for investing?

HealthSavings offers first dollar investing, which means there’s no minimum requirement to open an account or invest in mutual funds. Once the account is established, we do ask the account holder to keep at least $50 in the account to accommodate market fluctuations.

Are you available to educate my clients about HSAs?

Yes, HealthSavings offers a variety of easy-to-use educational resources, including infographics, educational brochures, videos and more. We’re also able to attend enrollment meetings or conduct educational webinars, as needed. Last but not least, clients may contact our HSA-certified member services advisors to ask specific questions.

Can you customize the HSA for my clients?

We can easily provide a custom toll-free number for your clients and allow you to choose the investments offered. Also, feel free to talk with us about other customization options, including customized web portals, debit cards and marketing materials branded with your logo, etc. Register as a partner at HealthSavings.com/Partners/Register to keep up with our latest product enhancements.

Page 8: ADVISORS - Health Savings...General Brochure, Employer Benefits Brochure, Member Benefits Brochure and Infographics How do I set up an employer with HealthSavings? Either you or the

HealthSavings Administrators

10800 Midlothian Tpke, Ste 240

Richmond, VA 23235

HealthSavings.com

OUR EDUCATIONAL TOOLS

GENERAL BROCHUREDefines our HSA, why our HSA, our history and more

EMPLOYER BENEFITS Information and tips about our HSA specific to employers

MEMBER BENEFITS Information regarding benefits of our HSA to employees/individuals

INFOGRAPHICS How an HSA works, member benefits, employer benefits

We also provide our advisors with infographics and informational content for both employers and individual members. This way you can customize an informational package that makes sense for your particular client. In turn, your employer can also select the tools to best help their employees.

www.healthsavings.com

How an HSA Works

Choose the best doctor either

in-network or out-of-network.

Visit the hospital, lab, doctor’s

office or imaging area.

No copay is required

(before deductible — some plans

require copay after deductible).

Present your

insurance card.

An Explanation of Benefits

(EOB) will arrive in your mail

to explain what’s covered.

The provider will send you a

bill for the amount not covered.

Take your prescription to the pharmacy

and present your insurance ID card.†

MEDICAL

PHARMACEUTICAL

Pay the provider by either:

Use your HSA funds

(debit card or transfer

investment funds to

your personal account)

Paying OUT-OF-POCKET

and keep money in your

HSA investments.

(You must save your receipts

to REIMBURSE yourself

tax-free in the future)

TAX

The Pharmacy will confirm your insurance

coverage and charge you only the

discounted rate.

Funds go into an individual account TAX-DEDUCTIBLE

Funds ACCUMULATE and carry over from year-to-year

2

4

5

6

1

OR

Pay the provider by either:

Use your HSA funds

(debit card or transfer

investment funds to

your personal account)

Paying OUT-OF-POCKET

and keep money in your

HSA investments.

(You must save your receipts

to REIMBURSE yourself

tax-free in the future)

TAX

OR

2

3

1

* Refer to IRS Publication 502 for complete list of eligible expenses.

*

*TIP: Confirm the bill m

atches your EOB

FIRST-DOLLAR INVESTING in Vanguard® mutual funds

We offer a total of 22 Vanguard® Funds.

12 of the 22 Vanguard® funds are ADMIRAL SHARES.

All of our members have access to these

shares which have lower expense ratios and

the potential for better returns.

You can invest in as many Vanguard®

funds as you would like.

All funds are No-Load Mutual Funds: the

shares are sold without commissions or

additional sales charges.While invested, your money remains available for your use, or it can grow tax-deferred for future use.

Vanguard® funds utilize a multi-manager approach to investing to provide greater diversification within each portfolio.

22FUNDS

VANGUARD FUND 1VANGUARD FUND 2VANGUARD FUND 3VANGUARD FUND 4

benefits

HealthSavingsVANGUARD® INVESTMENT

FIRST DOLLAR

NO-LOAD MUTUAL FUNDS

www.healthsavings.com

Vanguard is a registered trademark of Vanguard Group, Inc.

Securities offered through The Vanguard Group, Member NASD SIPC. Security

products: Not insured by FDIC nor any Federal Government Agency; May Lose Value;

Not a Deposit of or Guaranteed by the Bank or any Bank Affiliate.

We’re available Monday through Thursday,

8:30 a.m.–7 p.m. ET and Friday, 8:30 a.m.–5 p.m. ET

at either [email protected] or (888) 354-0697