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

Transcription

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

2 This presentation is designed to give you an overview of the CelticSaver HSA Health Plan and Health Savings Accounts (HSAs). Your agent and Celtic Insurance Company are committed to serving you. Thank you for taking time to see how the CelticSaver HSA can help you meet your health insurance needs!

3 Presentation Topics Introduction to HSA Programs The CelticSaver HSA Health Plan Overview of Celtic s Product Portfolio

4 Introduction to Health Savings Account Programs

5 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

6 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

7 Why are consumers buying HSAs? HSA Programs give you: More control over how your health care needs are met and financed: you 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

8 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

9 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

10 HSA Qualified Expenses You can use the money in your savings account to pay for many types of medical expenses, even some that are excluded from your insurance plan. 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.

11 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

12 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

13 The CelticSaver HSA Health Plan

14 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%)

15 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

16 CelticSaver HSA Health Plan Standard plan features: $7 million lifetime maximum per insured Additional emergency room deductible: $250 per visit (waived if admitted to hospital) Rate guarantee: premium will not change during the first 12 months of coverage Preferred and non-tobacco user rates are available for eligible applicants

17 Why purchase the CelticSaver HSA? Enjoy the benefits of a high-deductible health plan and HSA: CelticSaver HSA is simple and easy to understand Enjoy various tax advantages of the HSA You can buy the health plan without the HSA Freedom to use any HSA administrator

18 Why purchase the CelticSaver HSA? A committed company: Celtic is Rated B++ (Good) by A.M. Best Celtic is committed to excellent policyholder service Celtic s plans can be mixed-and-matched to meet your health insurance and budgetary needs

19 Superior HSA Support There are a number of services available to help answer your questions about your health insurance policy and Health Savings Account: Your insurance agent your best resource! Celtic s customer service (800) Celtic s website:

20 Celtic s Product Portfolio

21 Celtic s Product Porfolio Celtic offers a portfolio of plans to meet a wide range of individual and family health insurance needs. In addition to the CelticSaver HSA, you can choose from Celtic Basic CeltiCare Preferred Celtic Short-Term Plan availability and benefits may vary by state. Contact your agent for more information.

22 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 agent for more information.

23 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.

24 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 agent for more information.

25 (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 We hope this presentation was helpful. After learning the basics, you ll have questions your agent or tax professional can help you answer. Thank you for your interest in Celtic!