- Thread starter
- #21
Can you suggest HSA's as a virtual retirement plan?
- Thread starter retread
- Start date
Re: Can U suggest HSAs as a virtual retirement plan?
There is a taxation powerhouse with the HDHP/HSA plan. Specially, when you introduce it through a section 125 POP and to protect the employees from first dollar exposure early in the savings period when the HSA isn't fully funded, place an appropriate supplemental product (hospital indemnity, acc, sickness policy) in place to insure the high deductible risk.
p.s. You know if they don't fund their HSA you'll always have them as a supp client as well.
There is a taxation powerhouse with the HDHP/HSA plan. Specially, when you introduce it through a section 125 POP and to protect the employees from first dollar exposure early in the savings period when the HSA isn't fully funded, place an appropriate supplemental product (hospital indemnity, acc, sickness policy) in place to insure the high deductible risk.
p.s. You know if they don't fund their HSA you'll always have them as a supp client as well.
- Thread starter
- #23
Re: Can U suggest HSAs as a virtual retirement plan?
I specialize in the 10 or under small businesses. I don't think I am going to find any willing to fulfill the requirements of a cafeteria plan. They struggle as it is, to make the required government filings and get any work done. You have to remember these guys have their sleeves rolled up and grunting out a living, not sitting in an air-conditioned office with a staff that can handle a mountain of paperwork.
There is a taxation powerhouse with the HDHP/HSA plan. Specially, when you introduce it through a section 125 POP and to protect the employees from first dollar exposure early in the savings period when the HSA isn't fully funded, place an appropriate supplemental product (hospital indemnity, acc, sickness policy) in place to insure the high deductible risk.
p.s. You know if they don't fund their HSA you'll always have them as a supp client as well.
I specialize in the 10 or under small businesses. I don't think I am going to find any willing to fulfill the requirements of a cafeteria plan. They struggle as it is, to make the required government filings and get any work done. You have to remember these guys have their sleeves rolled up and grunting out a living, not sitting in an air-conditioned office with a staff that can handle a mountain of paperwork.
Last edited:
- 242
Re: Can U suggest HSAs as a virtual retirement plan?
Just an observation, but statiscally, the common deductible on co-pay plans is $2,500...... just wondering why there isn't verbose threads on helping people fund for the deductible.... but all of a sudden when you introduce a HSA into the mix, we've got concern they have money to cover the deductible? I am missing something....
Somarco has it right.... if you save $$$ on the PREMIUM, whether you fund the HSA or not, you're most likely ahead of the game.
Just an observation, but statiscally, the common deductible on co-pay plans is $2,500...... just wondering why there isn't verbose threads on helping people fund for the deductible.... but all of a sudden when you introduce a HSA into the mix, we've got concern they have money to cover the deductible? I am missing something....
Somarco has it right.... if you save $$$ on the PREMIUM, whether you fund the HSA or not, you're most likely ahead of the game.
- 242
Re: Can U suggest HSAs as a virtual retirement plan?
Had a prospect today that called me..... began my regular speil and he interupted me and said the following verbatim..... "I pretty much know what I'm looking for. I want an HSA plan with the highest deductible I can find for the best premium and I'll pay for the incidental healthcare expenses out of my pocket."
I about feel out of my chair...... he was paying over $700 a month for group to cover wife/1 child...... took him to a plan for each that saved him over $400 a month and his response was...... "...this seems to be too good to be true.... what do YOU think I should do."
I told him that a zero deductible plan from Aetna would only cost $650 a month and he should consider that?!!! (Just kidding)
Far and few between.
Had a prospect today that called me..... began my regular speil and he interupted me and said the following verbatim..... "I pretty much know what I'm looking for. I want an HSA plan with the highest deductible I can find for the best premium and I'll pay for the incidental healthcare expenses out of my pocket."
I about feel out of my chair...... he was paying over $700 a month for group to cover wife/1 child...... took him to a plan for each that saved him over $400 a month and his response was...... "...this seems to be too good to be true.... what do YOU think I should do."
I told him that a zero deductible plan from Aetna would only cost $650 a month and he should consider that?!!! (Just kidding)
Far and few between.
- Thread starter
- #27
Re: Can U suggest HSAs as a virtual retirement plan?
I got a training presentation from one of my carriers just the other day, and would you believe?.... this is just how they pitched the HSA!!
I got a training presentation from one of my carriers just the other day, and would you believe?.... this is just how they pitched the HSA!!
EdHead
Expert
- 29
Re: Can U suggest HSAs as a virtual retirement plan?
Try tis one...
"He who farts in church sits in own pew...Old Chinese proverb"
Try tis one...
"He who farts in church sits in own pew...Old Chinese proverb"
- 6,025
" Specially, when you introduce it through a section 125 POP and to protect the employees from first dollar exposure early in the savings period when the HSA isn't fully funded . . . "
Please explain? 125 POP?
Also - are there certain advantages in a HSA versus say a HRA or FSA?
Can anyone give me their description of each and any uses they may have experienced in the recent past with either of the 3 plans?
On the accident plan, etc - what carrier do you use and who do you recommend?
To provide the "gap" between the deductible, co-pays, co-insurance, etc - who do you recommend? Are there products out there to handle this affordably? I found some United American stuff - but, I don't know . . .
Tom
Please explain? 125 POP?
Also - are there certain advantages in a HSA versus say a HRA or FSA?
Can anyone give me their description of each and any uses they may have experienced in the recent past with either of the 3 plans?
On the accident plan, etc - what carrier do you use and who do you recommend?
To provide the "gap" between the deductible, co-pays, co-insurance, etc - who do you recommend? Are there products out there to handle this affordably? I found some United American stuff - but, I don't know . . .
Tom
- 596
Tom, you asked a lot of questions and I only have about two minutes here, so here is a brief explanation:
HSA - funds can be contributed by employer and/or employee up to annual limit to pay medical expenses tax efficiently. Unused funds roll over each year. The funds are employee's name from day one and can be withdrawn and used to buy cigarrettes if they wish (although a penalty occurs if under age 65).
HRA - They come in many different forms, but basically allow an employer to pay for their employees' medical expenses on a pre-tax basis according to the guidelines they set (can't discriminate between the same class of employees). They are extremely flexible and can be used to pay individual health premiums, incurred medical expenses subject to the group plans deductible, set-up to pay on specific types of health care expenses such as preventive care, or you can get really creative and even set up a self insured dental plan if you have enough employees. The most common use is to reimburse the employees a portion of their deductible if needed, otherwise, the employer keeps the difference. If put in an HSA, the employee keeps the difference.
Sect. 125 POP - Used when the employee withholds some of his or her paycheck to pay for benefits. If the employer can pay the bill directly, the requirements are simple and only need a "premium only plan" (POP). A common useage would be to have a POP put in place if all the employees are deferring out of their paychecks is money to pay their portion of their group health plan costs.
Sect. 125 - Too many uses to discuss here. Basically let's you pre-tax certain items such as described in the POP above. Health premiums (individual or group), unreimbursed medical expenses, dependent care, and many others depending on what the plan is set up to include or exclude.
HSA - funds can be contributed by employer and/or employee up to annual limit to pay medical expenses tax efficiently. Unused funds roll over each year. The funds are employee's name from day one and can be withdrawn and used to buy cigarrettes if they wish (although a penalty occurs if under age 65).
HRA - They come in many different forms, but basically allow an employer to pay for their employees' medical expenses on a pre-tax basis according to the guidelines they set (can't discriminate between the same class of employees). They are extremely flexible and can be used to pay individual health premiums, incurred medical expenses subject to the group plans deductible, set-up to pay on specific types of health care expenses such as preventive care, or you can get really creative and even set up a self insured dental plan if you have enough employees. The most common use is to reimburse the employees a portion of their deductible if needed, otherwise, the employer keeps the difference. If put in an HSA, the employee keeps the difference.
Sect. 125 POP - Used when the employee withholds some of his or her paycheck to pay for benefits. If the employer can pay the bill directly, the requirements are simple and only need a "premium only plan" (POP). A common useage would be to have a POP put in place if all the employees are deferring out of their paychecks is money to pay their portion of their group health plan costs.
Sect. 125 - Too many uses to discuss here. Basically let's you pre-tax certain items such as described in the POP above. Health premiums (individual or group), unreimbursed medical expenses, dependent care, and many others depending on what the plan is set up to include or exclude.
Similar threads
