Health Savings AccountsHealth Savings Accounts
A new health insurance A new health insurance
OPTIONOPTIONfor ACPL employeesfor ACPL employees
beginning 1/1/09beginning 1/1/09
August 21, 2008August 21, 2008
Do you ever feel …Do you ever feel …
……That you work all night & you That you work all night & you work all day just to pay the bills work all day just to pay the bills you have to pay?you have to pay?
Ain’t it sad?Ain’t it sad? And does it seem like there still And does it seem like there still
is not a single penny left for is not a single penny left for you?you?
That’s too bad!That’s too bad!
Do you ever feel …Do you ever feel …
……That in your dreams you have That in your dreams you have a man (Jeff!)?a man (Jeff!)?
That could get you a new health That could get you a new health plan??!!plan??!!
(Money, Money, Money …)(Money, Money, Money …)
……You’d still have to work all dayYou’d still have to work all day But check out how this HSA But check out how this HSA
would pay…would pay… And remember, this And remember, this isis about about
Money, Money, Money …so talk Money, Money, Money …so talk it over with your honey…it over with your honey…
It’s about Money, Money, It’s about Money, Money, Money! Money!
Musical Interlude…Musical Interlude…
For 60 seconds!For 60 seconds!
Please remember…Please remember…
All 2009 numbers are All 2009 numbers are ESTIMATES ONLY!ESTIMATES ONLY!
EE = EmployeeEE = EmployeeER = Employer (ACPL)ER = Employer (ACPL)
What is an HSA?What is an HSA?
Bank account set up to help pay for Bank account set up to help pay for uninsured medical expenses uninsured medical expenses
Goes with less $$ health plan (HDHP)Goes with less $$ health plan (HDHP) (EE + ER save on premium)(EE + ER save on premium) Part of ER savings get passed along to EE Part of ER savings get passed along to EE
as monthly deposits to HSA to help with as monthly deposits to HSA to help with high deductible/OOP max (& medical high deductible/OOP max (& medical expenses not reimbursed) expenses not reimbursed)
EEs encouraged to deposit all or part of EEs encouraged to deposit all or part of premium savingspremium savings
HSA $$ OWNED BY EE HSA $$ OWNED BY EE
The BIG difference?The BIG difference?
In current plan, In current plan, EE paysEE pays:: Flat dollar co-pay amounts for Flat dollar co-pay amounts for
(Doc, ER, Meds, etc) (Doc, ER, Meds, etc) 100% co-insurance items like X-100% co-insurance items like X-
Rays, Lab work, In-patient until Rays, Lab work, In-patient until deductible is met deductible is met
Then EE pays 20% until OOP Max Then EE pays 20% until OOP Max is metis met
After OOP met, EE pays only co-After OOP met, EE pays only co-payspays
The BIG difference?The BIG difference?
In HDHP, In HDHP, EE paysEE pays::
Everything!Everything! Until deductible/OOP Until deductible/OOP MAX is metMAX is met EXCEPT Preventative care covered EXCEPT Preventative care covered
at 100% (mammograms, annual at 100% (mammograms, annual check-ups, etc)check-ups, etc)
Nothing!Nothing! After Deductible/OOP is After Deductible/OOP is metmet
HDHP vs ACPL PHP 2008HDHP vs ACPL PHP 2008
In-NetworkIn-Network2008 2008
PHP PHP Annual Annual DeductibleDeductible
20082008
PHP Out PHP Out of Pocket of Pocket MAXMAX
20092009
PHP PHP Annual Annual DeductiblDeductibl
2009 2009
PHP PHP Out of Out of Pocket Pocket
MAXMAX
2009 HDHP2009 HDHP
Out of Out of Pocket Pocket MAX MAX
INDIND $250$250 $1,250$1,250 $250$250 $1,250$1,250 $2,500$2,500
FAMFAM $500$500 $2,500$2,500 $500$500 $2,500$2,500 $5,000 $5,000
To satisfy FAM deductible, one member satisfies, To satisfy FAM deductible, one member satisfies, then all others COMBINED can satisfy FAM deductthen all others COMBINED can satisfy FAM deduct
In HDHP, Deductible = Out of Pocket MAX!In HDHP, Deductible = Out of Pocket MAX!
HDHP vs ACPL PHP 2008HDHP vs ACPL PHP 2008
Out-of-NetworkOut-of-Network2008 2008
PHP PHP Annual Annual DeductibleDeductible
20082008
PHP Out PHP Out of Pocket of Pocket MAXMAX
20092009
PHP PHP Annual Annual DeductiblDeductibl
2009 2009
PHP PHP Out of Out of Pocket Pocket
MAXMAX
20092009
HDHPHDHP
Out of Out of Pocket Pocket MAX MAX
INDIND $500$500 $2,500$2,500 $500$500 $2,500$2,500 $7,500$7,500
FAMFAM $1,000$1,000 $5,000$5,000 $1,000$1,000 $5,000$5,000 $15,000$15,000
To satisfy FAM deductible, one member satisfies, To satisfy FAM deductible, one member satisfies, then all others COMBINED can satisfy FAM deductthen all others COMBINED can satisfy FAM deduct
In HDHP, Deductible = Out of Pocket MAX!In HDHP, Deductible = Out of Pocket MAX!
Why would anyone sign-up for an Why would anyone sign-up for an HSA??HSA??
There are There are several several reasons…let’s reasons…let’s talk premium …talk premium …
Estimated Monthly PremiumsEstimated Monthly Premiums based on 2008 based on 2008
Traditional Traditional PHPPHP
HDHPHDHP Difference Difference
Total Total premiumpremium
SingleSingle $459$459 $281$281 - $178 - $178 (39%) (39%)
Total Total premiumpremium
FamilyFamily $1,398$1,398 $909$909 - $489 - $489 (35%)(35%)
EE EE contribcontrib
SingleSingle $85$85 $52$52 - $33- $33
(39%)(39%)
EE EE contribcontrib
FamilyFamily $339$339 $221$221 - $118- $118
(35%)(35%)
ACPL ESTIMATED Deposits ACPL ESTIMATED Deposits into HSAinto HSA
Each Month, ACPL deposits $71 ($852/yr) Each Month, ACPL deposits $71 ($852/yr) (IND) or $90 ($1,080/yr) (FAM) into your (IND) or $90 ($1,080/yr) (FAM) into your HSA accountHSA account
Bank account to pay for medical expenses Bank account to pay for medical expenses not reimbursed by insurance (cough syrup, not reimbursed by insurance (cough syrup, bandages, co-pays, co-insurance, bandages, co-pays, co-insurance, deductibles, etc.)deductibles, etc.)
It’s your money! (spend it on healthcare, It’s your money! (spend it on healthcare, save it, use it in retirement)save it, use it in retirement)
You don’t ever lose it – but must be spent You don’t ever lose it – but must be spent on healthcare on healthcare
Employee Deposits into HSAEmployee Deposits into HSA Each year EE may contribute to his/her Each year EE may contribute to his/her
HSA: HSA: Up to $3,000 (IND) and $5,950 (FAM)Up to $3,000 (IND) and $5,950 (FAM)
EEs can take all or part of their lower EEs can take all or part of their lower health insurance premium and put in HSA health insurance premium and put in HSA – so $$ are there to handle the high OOP – so $$ are there to handle the high OOP maximumsmaximums
EE + ER contributions can’t exceed EE + ER contributions can’t exceed deductible (IND $2500 – 852 = $1648)deductible (IND $2500 – 852 = $1648)
You can save money in “good” (health) You can save money in “good” (health) years to pay for bills in “bad” yearsyears to pay for bills in “bad” years
Tax savings for employees in Tax savings for employees in HSAsHSAs
EE $$ into HSA is EE $$ into HSA is tax freetax free ER $$ into HSA is ER $$ into HSA is tax freetax free Gains on HSA money is Gains on HSA money is tax freetax free
All HSA $$ are All HSA $$ are tax freetax free when when
withdrawn - if for health related withdrawn - if for health related expenses including health expenses including health insuranceinsurance
How to tell if HSAs are good for How to tell if HSAs are good for ME?ME?
Probably good choice if you think Probably good choice if you think you’ll have few claims to pay with you’ll have few claims to pay with your ACPL contribution (pay lower your ACPL contribution (pay lower premiums and keep the monthly premiums and keep the monthly payments in the bank)payments in the bank)
Probably bad choice if you guess Probably bad choice if you guess your claim amount amounts to hit your claim amount amounts to hit the OOP maximumsthe OOP maximums
How to tell if HSAs are good for How to tell if HSAs are good for ME?ME?
Probably good choice if you want Probably good choice if you want to pro-actively manage your own to pro-actively manage your own healthcarehealthcare Do you want to request generic Do you want to request generic
drugs?drugs? Try to use family doctors instead of Try to use family doctors instead of
specialists?specialists? Try to find over the counter meds?Try to find over the counter meds? Shop for best buy on drugs, medical Shop for best buy on drugs, medical
procedures?procedures?
How to tell if HSAs are good for How to tell if HSAs are good for ME?ME?
You’re looking to retire soon , You’re looking to retire soon , want $ in HSA for COBRA until want $ in HSA for COBRA until Medicare Medicare
You like the idea of moving the You like the idea of moving the control from the insurance control from the insurance company to YOUcompany to YOU
ACPL “Corporate ACPL “Corporate Reimbursement”Reimbursement”
Not expected to be part of HSANot expected to be part of HSA
Probably won’t be continued for Probably won’t be continued for those staying with traditional those staying with traditional PHP coverage either PHP coverage either
Why is ACPL Offering this??Why is ACPL Offering this??
Like Wellness Credits, over long Like Wellness Credits, over long term, people will help us change term, people will help us change behaviors…tobehaviors…to ……Eat betterEat better ……Be healthierBe healthier ……Be better consumers of health careBe better consumers of health care When this happens, ACPL + EEs will When this happens, ACPL + EEs will
save moneysave money Premium savings for ACPL in 2009Premium savings for ACPL in 2009
HSA Q & AHSA Q & A
Q - Can you change back to Q - Can you change back to traditional PHP in 2010?traditional PHP in 2010?
A – YesA – Yes
Q – Can you keep unused Q – Can you keep unused ACPL contrib if you change to ACPL contrib if you change to PHP traditional plan in 2010?PHP traditional plan in 2010?
A - YesA - Yes
HSA Q & AHSA Q & A
Q – How with this actually work Q – How with this actually work – when getting services? – when getting services?
A – A – Show PHP card to providerShow PHP card to provider Get serviceGet service Provider bills PHPProvider bills PHP PHP processes billPHP processes bill Tells EE how much to payTells EE how much to pay
HSA Q & AHSA Q & A
Q – When will ACPL contrib be added to Q – When will ACPL contrib be added to the HSA?the HSA?
A – At the beginning of each MONTH A – At the beginning of each MONTH
Q - What happens if I use ACPL (or my Q - What happens if I use ACPL (or my own contribs) for non-eligible expenses?own contribs) for non-eligible expenses?
A – Employee is responsible for using A – Employee is responsible for using money within rules of plan (Misused HSA money within rules of plan (Misused HSA money becomes taxable with penalty)money becomes taxable with penalty)
Q - Should I save receipts? Are their Q - Should I save receipts? Are their audits?audits?
A - Yes!A - Yes!
HSA Q & AHSA Q & A
Q – Will you have to pay back ACPL Q – Will you have to pay back ACPL $$$ if you leave without using the $$$ if you leave without using the ACPL money in HSA?ACPL money in HSA?
A – No, employees own the money.A – No, employees own the money. Q – What if I get slammed with big Q – What if I get slammed with big
bill in first month – no $ in HSA to bill in first month – no $ in HSA to cover!?cover!?
A – Providers becoming increasingly A – Providers becoming increasingly accommodating on “payment plans” accommodating on “payment plans”
Education PlanEducation Plan
August/SeptemberAugust/September table tentstable tents Brief email “teasers”Brief email “teasers” PowerPoint on InsitePowerPoint on Insite Power point w/voice over on DVD Power point w/voice over on DVD Employee meetings at MAI & Employee meetings at MAI &
BranchesBranches
HR BlogHR Blog
Health Savings Account Health Savings Account Questions & Answers will be Questions & Answers will be posted on: posted on:
http://acplhrqa.blogspot.com/http://acplhrqa.blogspot.com/
The End!The End!
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