All Business Insurance Services Were All About Your Business

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All Business Insurance ServicesWere All About
Your Business

• Consumer Driven Major Medical Insurance
• Presented byDon Loper
• President
• All Business Insurance Services
• Registered Representative
• Multi-State Licensed Broker

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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 HASs ?
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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
2003
Federal Law (IRS) establishes deductibles amount
and Max out of pocket expenses
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There are 2 components of an HSA
The Qualified High
-
HSA tax deferred interest bearing Account than
can be used to pay for out of pocket healthcare
expenses
Deductible Health
(QHDHP) Major Medical Insurance Plan providing
Protection
the insurance
Satisfied All Business Insurance Client !
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Traditional Doctor Copay Plans
Important Terms explained
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
80/20/10,000 After 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.
Question Do you know how many family members
must Pay their individual deductible for your
plan?
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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.
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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 Pocket
Individual Deductible x 2
Individual Co-insurance 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
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!
Max Out of Pocket
How can an HSA help ?
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HSA or HDHP An affordable health solution for
you.
Now that you know how to calculate your Maximum
out of pocket expense, lets 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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Traditional Copay vs HSA Total Out of Pocket
comparison.
Traditional 80/20/10,000 coinsurance Plan
HSA (Common) 100 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
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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Traditional Copay vs HSA Total Out of Pocket
comparison.
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 !
Annual savings can be used to FUND the tax
deferred, interest bearing HSA account.
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Agents who dont 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 HSAs provide.
Don Loper   Multi-State
Licensed  Health Insurance Broker
Isnt it time you look into an HSA?
See IRS Publication 502 for complete list of
eligible expenses.
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HSAs Work
Tax Deductions Premium is deducted annually, and
any money placed in HSA is another tax
deduction against income !
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