Introducing the New Idaho State MSA

From: American Health ValuePresented By: Adam Berry

Learn how the new & expanded Idaho MSA Program will help you upgrade your benefit package, while

saving both the company and its employees money on healthcare costs!

AHV Company Background National HSA Administrator

Founded in 1996

Privately Held

Located in Boise, ID

HSA Clients in 49 States

Historically, Focused Solely on HSAs◦ No COBRA, FSA, HRA, Insurance or Banking

PPACA Prompted Investigations

Idaho MSA Background: Around Since Mid 1990’s

◦ They Have Longevity…

Idaho 1 of Only 3 States◦ Setting National Precedent…◦ Incredibly Flexible, For Everyone…

Yet, MSAs Almost Non-Existent◦ Sitting around collecting dust◦ Nobody knows about them◦ Why is that?

House Bill 595◦ Made them relevant again◦ Now a viable option to help people, if done properly

Introducing the New “Idaho MSA” “Idaho MSA” is a Collaboration

◦ Local Administrator, Local Bank◦ American Health Value & IIB

Built on Each Company’s Strengths◦ AHVs Strengths:

Benefit administration, customer service, education& consulting

◦ IIB’s Strengths: Statewide branches, local familiarity, banking services

Main Purpose to Help Idahoans◦ Provide quality guidance, assistance, compliance & banking

Help people both understand & maximize their MSA!

What is an Idaho MSA? Special Savings Account with Tax Benefits

◦ Set Money Aside Tax-Free for Healthcare◦ Reduces Taxable Income Dollar for Dollar

Triple Tax Advantage◦ Tax-Free Going In (reduces taxable income)◦ Earns Tax Free Interest While it Sits◦ Spent Tax-Free Going Out

Money Rolls Over Towards Retirement◦ No Use it or Lose it◦ Pull it Out at 59.5 as Retirement Income◦ Or Continue Paying Qualified Expenses

That may look familiar…This is where it gets interesting!

Who Can Have An MSA? Almost Anybody!

No Insurance Requirements!◦ HDHP, PPO, Medicare, Uninsured

No Employment Requirements!◦ FT, PT, Medicare, Seasonal◦ Even the Unemployed

No Age Restrictions!◦ Even Medicare Enrollees Qualify

Veterans, too!◦ No exclusions for VA Benefits or Tricare

Truly Designed to Help Everyone!

So, Who Does This Help? Anyone Who Files an Idaho Tax Return More Specifically...

◦ Anyone on Medicare Especially income-based Reimburse from what’s taken

◦ Anyone who pays their own premiums Simply pay from different account Write it all off first dollar

◦ Anyone with significant out-of-pocket medical expenses Personal, spousal, or children’s expenses

◦ Anyone with RMD’s 401k, IRA, etc. – Why pay State taxes? Divert into MSA

Almost Nobody Hits the 10% Medical Threshold!Even if you do, what about that first 10% you can’t deduct?

How Much Can You Put In? Quite A Bit!

Single Filing Status:◦ Up to $10,000

Joint Filing Status:◦ Up to $20,000

House Bill 595◦ March 28th, 2014◦ Increased limits from $2k & $4k

Funding Based on Calendar Year◦ Fund a little, or a lot – Up to you

Unspent Funds Roll Over Each Year, Building A Nest Egg◦ Use like an IRA & pull money out for retirement (age 59.5)◦ Or leave in & spend on inevitable medical expenses

How Do You Fund Your MSA? Using A Debit/Credit Card

◦ From our website, one-time or recurring◦ Call our office, one-time or recurring

Mailing A Physical Check◦ Send it to our office, we’ll deposit it

Using Bill Pay (If Applicable)◦ From existing checking account◦ Set up bill pay to your Idaho MSA◦ One-time, or recurring

Walking Into Any Bank Branch◦ Find an Idaho Independent Bank branch near you!

What Can You Spend it On? “Qualified Medical Expenses”

◦ Doctor’s Visits, Co-Pays & Prescriptions◦ Hospital Bills, Dental & Vision◦ Band-Aids, Chiropractor◦ Even Insurance Premiums!

Yes, You Can Pay Premiums!◦ Health Insurance Premiums◦ Medicare Premiums◦ LTC Premiums, too!

Debit Card & Checks◦ No Claim Submission, Keep Receipts◦ Pay at Point of Service, or Reimburse

If You’re Paying Your Own Premiums…Why Wouldn’t You Open One??

How Do You Get the Savings? When You File Your Idaho Tax Return

◦ Idaho Supplemental Schedule 39R

You Fill Out:◦ Total Annual Contributions◦ Interest Earned ◦ Financial Institution◦ Account Number

Dollar for Dollar Deduction◦ Carry over to form 40, Line 10◦ Take Your Deduction

That’s It!

To Sum It All Up… Savings Account for Healthcare

Reduces State Taxable Income

No Insurance or Age Restrictions

Deposit $10,000 or $20,000

Pay for common healthcare costs

Insurance Premiums, too!

Spender or Saver – Works for both.

For many Idahoans, this really is a no-brainer!

What About Employer Groups?

The Idaho MSA is an Excellent Benefit Option!

Flexible & Fits All Employer Shapes/Sizes

Employer Finally Controls the Cost

Works with Existing Structures, Or Replaces Them

Easy to Understand, Effortless to Implement & Inexpensive to Maintain!

One Size Finally Fits All Works for All Employee Demographics

◦ Full & Part-Time◦ Veterans◦ Medicare Enrollees◦ Even the Seasonal, or Uninsured!

Works for All Shapes/Sizes◦ Large or Small Groups (± 50)◦ Follow PPACA, Then Add the MSA

Not a Federal Program, so◦ No ERISA Requirements◦ No Tax Reporting◦ No Claims Administration◦ No Comparable Contributions

Flexible to Fit Any Employer Budget!

Employer Controls the CostThey Can Simply Fund What’s Comfortable:

Just Offer On a Voluntary Basis◦ Elective, Employer Pays Nothing

Sponsor Accounts, No Contributions◦ Employer Covers Annual Fee, Nothing More

Sponsor Accounts with Contributions◦ Employer Covers Annual Fee◦ Funds the MSAs However They See Fit

Full or Partial Funding Remember, No Comparability Rules Can Start & Stop As They See Fit

Use as Add-On, or Replacement Works with Any Existing Benefit Plan

◦ HSA, FSA, You Name It◦ Fits On Over the Top◦ Just Subtract the HSA/FSA◦ Nice Additional Benefit

Pay Premiums, or Costs Over FSA Cap Save/Invest HSA, Don’t Spend It

Replace Existing Benefit Plan◦ Send employees to exchange◦ Fund MSAs at Any Level◦ Help w/ premiums, providing a benefit◦ No longer hassling with insurance◦ Employer now controls cost & can budget◦ No longer waiting for premium hikes

Usage Example with FSA Contributions Must Be Combined & Not Exceed

Example: Employee Has Existing FSA

Individual Tax Filer:◦ Eligible for $10k to MSA but...◦ Makes $1,000 contribution to FSA◦ Can put $9,000 into Idaho MSA

Joint Tax Filer:◦ Eligible for $20k into MSA but...◦ Makes $2,500 contribution to FSA◦ Can put $17,500 into Idaho MSA

Why Use Both, Together?

Upgrade for Everyone Involved

No Matter What, Everyone Wins

Employees Get:◦ An MSA!◦ Plus Upgraded Benefits◦ Either Additional or Replacement

Employers Get:◦ To Offer Upgraded Benefits◦ Leads to Happy Employees◦ Some Control Over Costs

Flexible, Simple & Inexpensive Benefit Solution!

How We Can Help: We Handle The Education!

◦ Educational Handouts, Infographics & Videos◦ On-Site Education for Employers/Employees◦ Help Employees Understand Their Benefit!

We Do the Heavy Lifting!◦ You Don’t Need to Be An Expert◦ Simply Direct Employees to Our Office

Web, Phone, Email, ChatYou’re Not Fielding MSA Questions

◦ Always Kept in the Loop

Simple And User-Friendly◦ For You & for Your Employees◦ Resourceful Website◦ No Phone Trees◦ Use Our 18+ Years of Experience

Our Relationships, Your Benefits Law firm of Holland & Hart

◦ Worked together to format the Idaho MSA based on ACA employer guidelines and regulations governed by the following agencies: IRS US Treasury Department of Health & Human Services Department of Labor

Idaho State Tax Commission◦ Routinely collaborate to receive answers and

guidance on client account issues to ensure compliance.

Idaho State Legislators◦ Open and ongoing communication with

lawmakers to both evaluate and expand the Idaho MSA program to better suit Idahoan’s needs, statewide.

Healthcare Discount Program Totally Free for Our Members

Save up to 65% on:◦ Prescriptions◦ Dental Costs◦ Vision Care◦ Doctor’s Visits◦ Medical Lab Testing◦ + 5 more programs!

Excellent Statewide Coverage

Take Advantage of this Discount Card& Maximize your healthcare savings!

What Are the Next Steps? Decide What Fits Best for the Company

◦ How Should It Be Offered? Elective vs. Employer-Sponsored If sponsored, to what degree?

Educate Employees◦ Work Together to Explain Program

On-Site Presentations/Webinars◦ Distribute Materials

Emails or Flyers

Open MSAs for Employees◦ Enrollment Options:

On-Site Paper Applications Scan/Email, Fax, or Mail Paper Applications Enroll Over the Phone Enroll On Our Website

Thank You for Attending!

From: American Health ValuePresented By: Adam Berry

• Phone: (208) 331-0676• Email: A.Berry@IdahoMSA.com• Website: www.IdahoMSA.com

For Questions, Please Contact: