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

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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 ?

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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

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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 !

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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.

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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?

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“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

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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 ?

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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?

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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.

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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

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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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