Good Article on HSA's

[moonlightandmargaritas]

I have always wondered if Al is really Oprah.

No. Even worse.

 

[somarco]

No. Even worse.

Britney Spears?

 

[jbage007]

The problem is simple math and a disconnect.

I'll use an example from yesterday. A business owner asked me to three way with his wife (no, not that kind of three way) to explain the HSA. He currently has a rich benefit copay plan . . . $20 OV, Rx copays a $2000 deductible then 100%.

For this plan he pays $800/month.

4 family members. Everyone healthy, no meds.

The HSA runs $350 per month for a savings of $450 per month.

He wants to do it, wife is balking.

She wants to know how much does it cost to go to the doc. I tell her $50 - $60 for a routine visit.

She still balks.

So I throw this out. Say it costs $60 to go to the do and you go 10x in a month. That's $600 in OOP that goes toward your $3k deductible.

With the plan you have now you would pay $200 in OV copays PLUS $450 to the carrier for a total of $650. None of that accumulates toward the deductible.

Repeat this for 5 months and you have satisfied your HDHP deductible but you are still paying for the copay plan and haven't made a dent in your deductible.

She wants to think about it . . .

For some reason insureds think if they pay $20 now and might have to pay $60 with the other plan it will cost them more. The one thing they fail to consider, even if pointed out to them, is how much they pay in premiums for the copay.

Her current plan actually costs her $820 to go to the doctor--assuming one visit per month. Or, if she just goes once per year, then the actual out of pocket cost to her is $9,620, compared to if she had just one dr. vist a year with that HSA plan, it would "cost" her $2660, or $0 depending on how you want to structure the argument (many people think incorrectly that the answer actually is $4260--I could explain why that is wrong, but I've given away too many trade secrets already).

 

[mayhem87]

Her current plan actually costs her $820 to go to the doctor--assuming one visit per month. Or, if she just goes once per year, then the actual out of pocket cost to her is $9,620, compared to if she had just one dr. vist a year with that HSA plan, it would "cost" her $2660, or $0 depending on how you want to structure the argument (many people think incorrectly that the answer actually is $4260--I could explain why that is wrong, but I've given away too many trade secrets already).

sorry to argue with you but how the heck is it $2660? I can see maybe the $0 as the savings is there but I am so lost on how you got $2660. maybe because im a new agent i overlooked something?

 

[indmedins]

I think somarco does the right thing. I particularly like how he breaks the numbers down. If I am speaking with a business owner, I alway bring up and speak about HSAs, tax advantages, bank account advantages, premium savings, Doctor visits costs, etc. I can say, I have not met 1 businessman that doesn't agree with me. If the wife doesn't agree, well, that's their loss. I do, however, get them better copay plan for a lower premium. I sure don't want to lose a client.