Eric NortheyEric NortheyHealth Insurance AssociatesHealth Insurance Associates

Hurst-Euless-BedfordHurst-Euless-BedfordINDEPENDENT SCHOOL DISTRICTINDEPENDENT SCHOOL DISTRICT

FOR:

Health Savings AccountsHealth Savings Accounts

How TRS Health Plans How TRS Health Plans WorkWork

Routine

Non-Routine

80%20%

Carrier Pays100%

$2K

Co-Ins

Deductible

80%20%

Carrier Pays100%

80%20%

Carrier Pays100%

Co-Ins

Co-Ins

$2K

$1K

Lifetime Maximum

ActiveCare 1 ActiveCare 2 ActiveCare 3

$500 20% 80%

Co-Ins

$1K

Deductible

80%20%

Carrier Pays100%

Co-Ins

$2K

$500

Co-PaysYou Pay Entire Bill

Subject to Ded & Co-Ins

Except for Preventive Care: $500/yr/member

$20/$30

$10/$15/$20

$25/$35

Co-Pays

Dr

Rx$10/$15/$20

Deductible

RxDrNegotiated Rates

$1100

Eric NortheyEric Northey Health Insurance AssociatesHealth Insurance Associates

HDHP & HSAHDHP & HSA2 Parts2 Parts

HDHPHDHP High Deductible Health PlanHigh Deductible Health Plan TRS ActiveCare-1 Employee Only TRS ActiveCare-1 Employee Only

Qualifies Qualifies Min Deductible - $1,100 IndividualMin Deductible - $1,100 Individual

HSAHSA Health Savings AccountHealth Savings Account Like a Like a SuperchargedSupercharged Medical IRA Medical IRA Max Contributions for 2008 are:Max Contributions for 2008 are:

$2,900 for Individuals $2,900 for Individuals ($5,800 for Families)($5,800 for Families) Better Better

All the benefits of an IRA PlusAll the benefits of an IRA Plus Tax free current and future spending for Tax free current and future spending for

qualified medical expensesqualified medical expensesEric NortheyEric Northey Health Insurance AssociatesHealth Insurance Associates

Comparison Between Comparison Between HSA & PPOHSA & PPO

Here is an example used by TRS to Here is an example used by TRS to illustrate the different costs for the illustrate the different costs for the different plans (Page 30 of the different plans (Page 30 of the enrollment guide).enrollment guide).

Comparison between; Comparison between; ““TRS ActiveCare 1”, and TRS ActiveCare 1”, and ““TRS ActiveCare 3”TRS ActiveCare 3”

Eric NortheyEric Northey Health Insurance AssociatesHealth Insurance Associates

Example 1: It’s the FluExample 1: It’s the Flu

Event CostEvent Cost Co-Pay Dr = Co-Pay Dr =

$20$20 Co-Pay Rx = Co-Pay Rx =

$10$10

Annualized CostAnnualized Cost PremiumPremium ==$3,024$3,024 Co-Pay (s)Co-Pay (s) == $30$30 TotalTotal ==$3,054$3,054

Negotiated RateNegotiated Rate = = $85$85 N.R. RxN.R. Rx == $25$25

ActiveCare 3ActiveCare 3 ActiveCare 1ActiveCare 1

PremiumPremium ==$492$492 N.R. (s)N.R. (s) ==$110$110 TotalTotal ==$602$602

SavingsSavings ==$2,452$2,452

Eric NortheyEric Northey Health Insurance AssociatesHealth Insurance Associates

How an HDHP & HSA How an HDHP & HSA WorkWork

HDHP

HSA

EmployeePre-Tax Payroll

Deduction

Dr Office/Hospital

Insurance Card

Optional Contribution$0 to Annual Maximum of $2,900 Ind*

$5,800 Fam*

Premium

• To obtain network discount

• To determine remaining deductible

• To apply charges to deductible

• Pay for charges

• qualified payments are tax free

• Remaining balance remains in account

HSA Debit Card

* 2008 IRS Limits

Eric NortheyEric Northey Health Insurance AssociatesHealth Insurance Associates

HSA Financial InstitutionHSA Financial Institution UMB Bank, n.a. UMB Bank, n.a.

CheckbookCheckbook Debit CardDebit Card Online EnrollmentOnline Enrollment Employer Employer

ContributionContribution Individual Individual

ContributionContribution Payroll ContributionPayroll Contribution

Interest Bearing Interest Bearing AccountAccount

Individual SecuritiesIndividual Securities Self DirectedSelf Directed Mutual FundsMutual Funds Online PortalOnline Portal Online StatementsOnline Statements

Eric NortheyEric Northey Health Insurance AssociatesHealth Insurance Associates

What can HSA’s be used What can HSA’s be used for?for?

Eligible Medical Expenses Abdominal supportsAbortionAcupunctureAir conditioner (when necessary for relief

from difficulty in breathing)Alcoholism treatmentAmbulanceAnesthetistArch supportsArtificial limbsAutoette (when used for relief of

sickness/disability)Birth control pills (by prescription)Blood testsBlood transfusionsBracesCardiographsChiropractorChristian Science PractitionerContact LensesContraceptive devices (by prescription)Convalescent home (for medical treatment

only)CrutchesDental treatmentDental x-raysDenturesDermatologistDiagnostic feesDiathermyDrug addiction therapyDrugs (by prescription)Elastic hosiery (by prescription)

Eyeglasses (by prescription)Fees paid to health institute prescribed by a

doctorFICA and FUTA taxes paid for medical

servicesFluoridation unitGuide dogGum treatmentGynecologistHealing servicesHearing aids and batteriesHospital billsHydrotherapyInsulin treatmentLab testsLead paint removalLegal feesLodging (away from home for outpatient

care)Long term care insurance premiumsMedicare Parts A & B after age 65Metabolism testsNeurologistNursing (including board and meals)ObstetricianOperating room costsOphthalmologistOpticianOptometristOral surgeryOrgan transplant (including donor's

expenses)Orthopedic shoes

Orthopedist OsteopathOxygen and oxygen equipmentPediatricianPhysicianPhysiotherapistPodiatristPostnatal treatmentsPractical nurse for medical servicesPrenatal carePrescription medicinesPsychiatristPsychoanalystPsychologistPsychotherapyRadium therapyRegistered nurseSpecial school costs for the handicappedSpinal fluid testSplintsSterilizationSurgeonTelephone or TV equipment to assist the

hard-of-hearingTherapy equipmentTransportation expenses (relative to health

care)Ultra-violet ray treatmentVaccinesVasectomyVitamins (by prescription)WheelchairX-rays

Eric NortheyEric Northey Health Insurance AssociatesHealth Insurance Associates

Who Qualifies?Who Qualifies? You have a qualified High Deductible You have a qualified High Deductible

Health Plan (HDHP) Health Plan (HDHP) TRS ActiveCare 1 TRS ActiveCare 1 Employee Only Employee Only HEB ISD’s Current Enrollment HEB ISD’s Current Enrollment

(subject to change after the Spring and Fall Open enrollment)(subject to change after the Spring and Fall Open enrollment)

Employee only - 191 employeesEmployee only - 191 employees Employee & Dependents - 101 employees Employee & Dependents - 101 employees

(spouse, child or family)(spouse, child or family)

You have no other health coverage except what You have no other health coverage except what is permitted under is permitted under Other health coverageOther health coverage. .

You are not enrolled in Medicare.You are not enrolled in Medicare. You cannot be claimed as a dependent on You cannot be claimed as a dependent on

someone else's tax return. someone else's tax return.

Eric NortheyEric Northey Health Insurance AssociatesHealth Insurance Associates

ENDEND