The HSA Push, is It Really a Good Deal?

[CHUMPS FROM OXFORD]

I understand exactly what TX is saying. I seem to talk to an incredible amount of people that bought an HSA less than six months ago and want out of it.

Reasons? Many. Too many to list.

And like TX...I also have an HSA and obviously love the concept.

 

[COInsguy]

TX, sounds like you did your Job showing him all the plans...if the copay plan was basically the same price with all the benefits why did he go for the HSA then? And if he declined the Accident on top of it all sounds like the guy had to learn a tough lesson.

If I could have a copay plan for same cost/risk I'd take it....For me and my kids that's a $150/mo spread though so I'll take the HSA w/accident any day!

 

[IAC.Ryan]

Not only do you not ever have to put a cent in your account, you don't ever even have to set one up to have the coverage.

I realize the topic is moved from this post but thought I'd throw it out none the less-

Due to different Utilization trends from those clients that set up HSA's to go along with their HDHP and those that do not - a number of carriers discount the premium just for having an account set up. (not necessarily funded)

 

[Full Throttle]

I don't sell internet leads, but I find the majority choose an HSA plan when I show a side by side. As John said, I could care less what they choose, I educate them and let them decide. That being said, I have had "HSA buyers remorse" kick in 6 months later.

I've found the key to preventing it is to hold their hand in setting up the HSA account when the policy is issued and put it on ACH autopilot. This prevents the problem in most cases. If you find the savings and then they just spend it somewhere else, that doesn't do much for them.

The exception is savy people who set-up the account with minimal funding ($100 to open), have liquid cash, and fund the account retroactively on an as needed basis. These savy people are few and far between, but they make good clients.

 

[TXINSURANCE]

The claims and satisfaction of those opening HSA accounts all comes down to affluence of such client. This is why these were a better fit when you had to be self employed to purchase them (longer term policies) vs. Internet leads which are lower income (overall) and more transitional client.

 

[Crabcake Johnny]

Totally agree TX. Also has to do with the honestly of the agent when asked "so, how much will I pay for a doctor visit?"

The truthful answer is "I don't know." The bad answer is "oh, right around $50 or so."

That's when you get into bad situations when even a repriced visit goes over $200. What I tell my HSA clients is "be prepared to cover your own expenses up to the deductible."

If they don't like that concept a PPO is a better fit.

 

[ABC]

I have spent months doing everything I can to better myself both as a person and as an insurance professional learning from the best (Thanks Rob!) and all the others who I've had the opportunity to work with and learn from to get my sales to where they are today.Rob, couldn't agree more!

"I have spent Months" Thats great!
Its sounds to me that you are part of some kind of cult sales training but if it makes you a better person good for you.
I usually get thrown out of those type classes.


I have been selling HSA's since the inception.

The HSA plan design is not for everyone. The person that has about $400 a month in drug cost it does not really work for. Those people usually will not get approved anyways.

The HSA is for people willing to look at there total medical expense. If someone is willing to see their GP over a specialist that is a good fit. If someone is willing to shop out brand name drugs for generic that is a good fit.
If someone is willing to work a mini disease management program that is a good fit. If someone is healthy and very active then its a good fit. If someone has a lot of money and can fund the custodial account

If you don't have the HSA in your tool box then you are not a very good broker. This option should be presented 75% of the time.

Currently 90% of my individual sales are HSA plans.

70% of my group plan sales are HSA plans.


There is a reason why the carriers are pushing the Individual HSA. They make more money on them. There have been some sick bonus programs out there that do not take in consideration the premium amount.
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Totally agree TX. Also has to do with the honestly of the agent when asked "so, how much will I pay for a doctor visit?"

The truthful answer is "I don't know." The bad answer is "oh, right around $50 or so."

That's when you get into bad situations when even a repriced visit goes over $200. What I tell my HSA clients is "be prepared to cover your own expenses up to the deductible."

If they don't like that concept a PPO is a better fit.

First off most HSA plans are on PPO networks! That is health insurance 101.

If you work enough claims you can accurately predict what a GP visit costs after the network discount. In my city its $57.
If the client then receives additional services like diagnostic then you could see a much higher bill.
Most traditional co pay plans will not cover diagnostic services under a co pay so those charges would go towards the deductible anyways.

Please review your state specific summery of benefits for each plan you sell.

 

[YouGotMyMoney]

I think healthagent means copay plan when he's say ppo plan.

 

[COInsguy]

"I have spent Months"

Thats great!
Its sounds to me that you are part of some kind of cult sales training but if it makes you a better person good for you.
I usually get thrown out of those type classes.

Some kind of Cult Sales training...That's cute...kinda...first of all your post was a bit misguided in that I was never saying I "push" an HSA.... I guide clients into a decision between the two options and let them decide whats best.

I was talking about the sidebar about closing a larger percentage of Internet leads which some people here don't think is possible. They think closing 1/2 the people that are fact finders is only in a "fantasy" land.

Secondly My training in insurance has come from a number of resources and my own sales experience coming into Insurance. I'm surrounded by a lot of great influences to help build a business!
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First off most HSA plans are on PPO networks! That is health insurance 101.

If you work enough claims you can accurately predict what a GP visit costs after the network discount. In my city its $57.
If the client then receives additional services like diagnostic then you could see a much higher bill.
Most traditional co pay plans will not cover diagnostic services under a co pay so those charges would go towards the deductible anyways.

Couldn't agree more there

 

[ticker_shuffle]

Just when you think you get it...

I talked with my contacts at UnitedHealthOne and finally have the big picture on HSA vs Copay.

Bottom line, they really aren't so different that HSA is some "discount plan". There is no real catch, and there is good explanation why HSA can be cheaper for similar benefits. When I started this thread, what I was seeking was a clue as to the catch in the conditionally cheaper HSA plans. I have the answer now - people with HSA tend to stay with carrier longer.

Wow, decyphering this comparison was quite an adventure. thanks to all who helped shed light on this for me. Whew, fun stuff.