Ideas about presenting HSA's

[VolAgent]

Much better, thanks. It was a real question and I was interested in a real answer. I know only the actual actuaries have the true answer, but generally you are very insightful into the issues.

I guess all those guys pitching employers to put part of the premium savings into the HSA account in the early years ruined the product now?

 

[Full Throttle]

Show them the cost savings and real numbers for their situation. Most will get it if the savings are there, some never will. I agree that most of the time the numbers will not work for a co-pay vs. HSA plan in the group channel.

As one employer pointed out a few years back, "why would I switch to an HSA? In order to not screw the employees, have to give the savings to them in the savings account? Now I have no savings and one more thing to take up time for our office staff?"

He was right for the most part, not counting any secondary benefit from the employees making smarter decisions on their health care dollars. That's why I don't do much group HSA business, but a lot of group HRA business. Individual, 90%+ HSA plans.

 

[stuy119]

Show them the cost savings and real numbers for their situation. Most will get it if the savings are there, some never will. I agree that most of the time the numbers will not work for a co-pay vs. HSA plan in the group channel.

As one employer pointed out a few years back, "why would I switch to an HSA? In order to not screw the employees, have to give the savings to them in the savings account? Now I have no savings and one more thing to take up time for our office staff?"

He was right for the most part, not counting any secondary benefit from the employees making smarter decisions on their health care dollars. That's why I don't do much group HSA business, but a lot of group HRA business. Individual, 90%+ HSA plans.

Sell the HSA plan alongside an HRA (where the ER reimburses the 2nd half of the deductible rather than all or the 1st half). Keeps costs down, and 60% of people won't tap into that portion of the savings.

Makes you look good, the ER look like a good guy, and the ER saves money. Win-win-win, as Michael Scott would say.

 

[somarco]

I guess all those guys pitching employers to put part of the premium savings into the HSA account in the early years ruined the product now?

Not really. Just took group actuaries a while to catch on.

When I was in the stop loss business we would write plans with a $5000 deductible. The idea was the employee funds up to that level, carrier pays above that.

When employers started kicking in money via an MSA or other fund, or when the employees bought the Duck to fill in the gaps, the claim experience started going crazy. Rates on $5k SIR's went thru the roof and then eventually disappeared leaving $10k SIR's as the minimum.

While this was going on in the stop loss biz, the fully insured carriers were undercutting us by a lot on SIR's under $10k. Eventually they figured out what we did and that was the end of that game.