The customer is always right.

HSA plans are for self employed only. Really, if they have the money, copay plans are for them or straight 80/20 plans. Post tax money, needs no HSA function.
 
What if the client was dead set on a Mega Plan. And, no matter what you said their friend has it and loves it, and they want that plan? What would you do? Would you walk away from a sale?

I am simply playing devils advocate, and am interested in the responses...

(I also know that this would never happen in real life)

I'd tell them do a search on Google and type in Mega Life class action lawsuits or just send them this link.

Possible Class Action Lawsuit against MEGA Life and Health Insurance or Mid-West Life Insurance Company of TN

That should do it.
:biggrin:
 
Well, the word "only" should not have been entered up there. Bob, I am sure you can help me understand the HSA plan and bank account a bit better. When I think about HSA plans, the plan designs are simple for anyone to grasp, but when I speak to a prospect, I have trouble educating someone who doesn't earn pre-tax dollars to open an HSA bank account. Usually, they don't like the concept of having another bank account and with many plan designs, they are not happy with no first dollar benefits.

I guess what I am getting at is, how can an HSA bank account help someone if they don't earn pre-tax dollars. Isn't keeping money in a regular money market account just as sensible for people earning paychecks?
 
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I love the HSA but never had much success until I uncoupled the HDHP from the HSA. Most folks find it overwhelming to grasp the idea of jettisoning copays AND setting up a bank account to handle self pay claims.

Your questions and comments seem to be directed more toward the banking arrangement so let me address that.

Several carriers have relationships with banks that make the process seamless. One check (bank draft) goes to the carrier who splits the premium money and sends the rest on to the bank. If the client permits it, the carrier will also have access to the HSA funds and can directly reimburse the provider once the claim is adjudicated.

Even when you disconnect the bank from the HDHP this still does not have to be a complicated procedure. Several banks target the HSA and have a lot of information and services that make the process simple.

I never force the issue of the HSA, but give them options and let them decide.

The main purpose of the HSA is the tax angle. If they do not have taxable income there is no incentive to fund the HSA.

Funding the HSA with after tax dollars is not as favorable as using a flex plan funded with pre-tax dollars but there are still advantages.

If your client is in a 25% tax bracket they have to earn $1333, pay $333 in taxes, to have $1000 left to pay bills. Keep in mind they can pay medical, dental & vision expenses from their HSA. Most folks won't have $1000 in medical but throw in dental & vision and it is not unusual to have a sizeable chunk of bills that can be funded thru the HSA.

In some ways the HSA is better than a flex plan.

Flex plans allow you to reduce your pay to fund the flex account. The pay reduction means lower FICA taxes but also lower earnings reported to Social Security . . . which can lower your SS benefits. If your employer has a pension plan or matching 401(k) that means a lesser retirement benefit or possible lesser contributions (and match) on the 401(k) side.
 
Interesting on what you said about the carrier HSA bank account how the draft pays for premium and makes the deposit to fund the account, makes funding the HSA account seamless. Generally, I don't elect to set my clients up with the carriers bank.

Whenever I put a client on an HSA, I have been giving them the option to open the account at their own local bank or direct them to hsabank.com as I understand when they switch carriers and move to another, the bank account stays intact and will be on less step they have to take during the process.

Thanks for all the great info Bob. I guess the reason why I am mostly turned off by HSA's right now is the fact that GR is not as competitive as they should be in FL. I have been putting clients on Humana Total HSA+Rx and it is a good plan due to the fact there are some first dollar benefits within it.
 
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Very few banks really know how to manage HSA's. Some banks offer HSA's as an aside and do a lousy job. If the bank is not actively promoting HSA's, keep moving.

If the HSA is set up with a "carrier friendly" bank they are not required to keep, or move the account if they change carriers.

Last yr most of my clients went with GR. They are still competitive on price, but other carriers (such as H1) offer preventive benefits at no charge. Many times GR and H1 are neck and neck in price but the preventive benefit and $5M lifetime max shift in favor of H1.

This month Aetna revamped their plans and pricing, especially on the HSA. What I am finding now is the Aetna plan (which was previously out to lunch) is very competitive with H1 and GR. I find myself recommending Aetna much more than before.
 
I will check into Aetna in FL for price. I actually just put a client on the POS 3K HSA and the price was a bit high here, but he is a type 2 diabetic.

What I don't like about the carriers banks are from a quick glance, the monthly fee and the minimum deposit requirement. Maybe they are all the same, but if the client has a lot of money in a certain local bank, I figure that bank will wipe out the fees for him or her as they usually do.

And, yes, I am pleased with H1 and the preventative on the HSA.
 
I can't state enough that your clients really have to "get it" regarding non-copay plans.

Most get it - they can easily see the savings and don't see the doc often.

However, when they don't get it is when you receive the "I just got a $260 bill!!!" call and you have to re-do the math.
 
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