Selling Health Savings Accounts & the CelticSaver HSA Health Plan. CelticSaver HSA3.0 AGT 3/09

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1 Selling Health Savings Accounts & the CelticSaver HSA Health Plan CelticSaver HSA3.0 AGT 3/09

2 Presentation Topics Introduction to HSA Programs The CelticSaver HSA Health Plan Celtic s Agent HSA Sales Support Overview of Celtic s Product Portfolio

3 Introduction to Health Savings Account Programs

4 Health Savings Account Programs help address The growing number of individuals and families with no health insurance Research shows that people of all ages and income levels are choosing HSA Programs to meet their needs The rising cost of health care Consumers are experiencing rising costs for medical services, drugs, supplies, and insurance premiums HSA Programs provide major medical coverage and a savings account to help manage health care costs Increasing popularity of consumer-driven health plans Consumers are taking more control over how their health care needs are met and financed The U.S. Treasury Department projects that by 2010, HSAs will grow to cover million people* *Source: US Treasury s HSA Website

5 Two Components of an HSA Program Consumers must have coverage under an HSA-qualified High Deductible Health Plan (HDHP) to open and contribute to a Health Savings Account. Qualified HDHP CelticSaver HSA Health Plan & Health Savings Account HSA

6 Why are consumers buying HSAs? HSA Programs give consumers: More control over how their health care needs are met and financed: they may price-shop, ask more questions, get more involved in prevention and treatment Tax savings tax deductions on HSA contributions tax-free withdrawals for qualified medical expenses tax-free earnings on dollars accumulating in the HSA Health insurance coverage protection against high or unexpected medical bills Account ownership and portability Source: US Treasury s HSA Website

7 Who can have an HSA? Any adult can contribute to an HSA if they: are covered under an HSA-qualified HDHP (such as the CelticSaver HSA) have no other first-dollar medical coverage (other types of insurance like specific injury insurance or accident, disability, dental care, vision care, or LTC insurance are permitted) are not entitled to benefits under Medicare can t be claimed as a dependent on someone else s tax return Source: US Treasury s HSA Website

8 HSA Contributions the basics Annual tax-deductible contribution can be up to the IRS allowed maximums. For 2009: Single coverage: $3,000 Family coverage: $5,950 Contributions can be made by the account holder, employer, or both. The account holder takes the tax deduction. Contributions can be made in one or more payments at any time prior to April 15 of the following year. People between the ages of 55 and 65 can make additional catch up contributions. For 2009: $1,000 Source: US Treasury s HSA Website

9 HSA Qualified Expenses Consumers use the money in their savings accounts to pay for many types of medical expenses, even some that are excluded from their insurance plans. Some examples: R x drugs OTC drugs Chiropractic care Reading glasses Diaper rash treatment Maternity Elective surgery (i.e. Lasik) Allergy medicine Oxygen equipment Band-aids Doctor s fees Dental services Visit for more information about qualified medical expenses.

10 HSA Qualified Expenses Generally, health insurance premiums are not qualified expenses, except for the following: Qualified long-term care insurance COBRA health care continuation coverage Health care coverage while an individual is receiving unemployment compensation Medicare premiums and out-of-pocket expenses, including deductibles, copays, and coinsurance for Parts A,B,C, and D. Visit for more information about qualified medical expenses. Source: US Treasury s HSA Website

11 Disbursements the basics Withdrawals from an HSA used for qualified medical expenses are tax-free if taken for the insured individual, spouse, or dependent. The spouse and dependent(s) do not need to be covered by the underlying HDHP. Withdrawals not used for qualified medical expenses are included in gross income for tax purposes and are taxed an additional 10%. Source: US Treasury s HSA Website

12 The CelticSaver HSA Health Plan

13 CelticSaver HSA Health Plan Standard plan features: Eligibility: Individuals, ages 18 to 64½ years, and their dependents Plan choices: fully-steered PPO and Managed Indemnity Deductible (and coinsurance) choices: Individual $1,500 (80/20 of the next $18,000) $2,600 (80/20 of the next $12,000) $1,500 (100%) $2,600 (100%) $5,000 (100%) Family $3,000 (80/20 of the next $36,000) $5,150 (80/20 of the next $24,000) $3,000 (100%) $5,150 (100%) $10,000 (100%)

14 CelticSaver HSA Health Plan Standard plan features: Single family deductible Rx and non-preventive office visit coverage after deductible Preventive Care Eligible expenses covered up to $300 per person, per calendar year; includes up to $50 for routine eye exams; subject to deductible and coinsurance Preventive Care Option Eligible expenses covered first-dollar up to $300 per person, per calendar year; includes up to $50 for routine eye exams

15 CelticSaver HSA Health Plan Standard plan features: Preferred and non-tobacco user rates for eligible applicants $7 million lifetime maximum per insured Additional emergency room deductible: $250 per visit (waived if admitted to hospital)

16 Top Selling Points for the CelticSaver HSA Benefit structure is simple and easy to explain to your clients: 100% or 80/20 % coinsurance and a range of deductibles You can sell the health plan without the HSA Your clients can use any HSA administrator Generous $7,000,000 lifetime maximum First-dollar preventive care option

17 Top Selling Points for the CelticSaver HSA Rate guarantee: premium will not change during the first 12 months of coverage Preferred and non-tobacco user rates are available for eligible applicants 20/5% commission Celtic has been rated B++ (Good) by A.M. Best

18 Celtic s Agent HSA Sales Support

19 Superior Agent Sales Support District Sales Manager (800) Celtic s website: Underwriting Pre-screen Hotline (800) ext. 4 Agent marketing materials Celtic Education Series Celtic Agent Portal Manage/track your online business Personalized e-commerce site Online quoting and applications

20 Your District Sales Manager Your dedicated contact person at Celtic will: Answer all your presale questions Review your cases Track your applications Keep you up-to-date on all of Celtic s products Provide quotes and sales materials Help you sell!

21 Sales Materials Get all of your Celtic materials through your District Sales Manager (800) or You can get sales materials through the mail, via fax, via , or online!

22 Your HSA Resource Center! Visit the HSA Resource Center at today! Learn more about health savings accounts: FAQs Links to useful websites View an HSA training presentation And more!

23 Selling Approach #1 Compare HSA Program to traditional health plan: Plan example for an individual Monthly premium paid Tax-deductible monthly HSA deposit (optional) Total monthly cost Annual cost in premium for health plan Annual cost for HSA Annual cost (premium for health plan and HSA account) Tax savings (33% of HSA deposit) Total cost of health plan and HSA account HSA account balance after one year (with no medical claims) If $1,000 medical claims incurred out-of-pocket expenses from the claim Annual out-of-pocket expenses Annual savings with the HSA (not including interest earned in account.) Traditional plan ($1,000 ded., 100% coins.) $200 Not allowed $200 $2,400 $2,400 None $2,400 None $1,000 $3,400 HSA plan ($2,600 ded., 100% coins.) $100 $100 $200 $1,200 $1,200 $2,400 $400 $2,000 $1,200* None (claim is covered by HSA) $2,000 $1,600 * Does not include interest earned in account.

24 Compare HSA Program to traditional plan: Use the difference in premium to fund the HSA Take tax deduction on HSA contribution Use HSA savings to pay out-of-pocket expenses Show your clients the potential earnings Savings grow tax-deferred year to year You don t lose it if you don t use it

25 Selling Approach #2 Offer more comprehensive coverage, or mixand-match plans within a family: Sell plan with first-dollar coverage to mom and kids and put dad on a HDHP/HSA Program for family savings Your client may need a plan with first-dollar and optional benefits, such as CeltiCare Preferred Consider a CeltiCare Preferred plan with a high deductible and office visit copays Begin to educate the client on consumer-driven health care

26 Celtic s Product Portfolio

27 Celtic s Product Portfolio Celtic offers a portfolio of plans to meet all of your clients individual and family health insurance needs. In addition to the CelticSaver HSA, your clients can choose from Celtic Basic CeltiCare Preferred Celtic Short-Term Plan availability and benefits may vary by state. Contact your District Sales Manager for more information.

28 Celtic Basic Health Plan Product Availability: Individuals, ages 6 months through 64½ years, and their dependents Likely Prospects: year-olds Young families 40+ aged consumers Highlights: 80/20% coinsurance Range of deductibles Low non-preventive office visit copay $5,000,000 lifetime max. Built-in network savings Rx drug coverage Rx Drug Option Initial 12-month rate guarantee Plan availability and benefits may vary by state. Contact your District Sales Manager for more information.

29 CeltiCare Preferred Health Plan Product Availability: Individuals, ages 6 months through 64½ years, and their dependents Likely Prospects: Individuals and families with no employer coverage Consumers who need a flexible, comprehensive plan with options Highlights: 3 plan choices Healthy Lifestyle Program Low office visit copays Preventive care coverage $7,000,000 lifetime max. Initial 12-month rate guarantee Rx drug coverage Rx Drug Option Supplemental Accident Option Plan availability and benefits may vary by state. Contact your District Sales Manager for more information.

30 Short-Term Health Plan Product Availability: Individuals, ages 6 months through 64½ years, and their dependents Likely Prospects: Recent college grads Military discharges Those awaiting group coverage Anyone needing to fill a gap in coverage Highlights: Range of deductibles Major medical plan 80/20 coverage to $5,000 $2 million lifetime max. Length of coverage: 1-6 mos. Applicants can apply up to 3 times for a total of 12 months of coverage Emergency coverage outside U.S. Plan availability and benefits may vary by state. Contact your District Sales Manager for more information.

31 (800) Important Note: The information contained in this presentation and in any accompanying literature is not intended to provide full details of Celtic plans and may change at the discretion of Celtic Insurance Company. Complete terms of coverage are outlined in the individual Certificate Booklets and set forth in the applicable insurance Policy and Trust agreement. In applying for coverage, the primary insured agrees to be bound by the Certificate. The benefits described here and any accompanying literature are the standard benefits offered by Celtic. Policy provisions vary in some states. Plan availability and benefits may vary by state. Celtic Insurance Company does not provide tax, investment or legal advice. Federal and state tax laws may change and are subject to interpretation. If tax, investment or legal advice is requested, consumers should seek the services of a licensed professional. 3/09