Health Savings Account

Basic HSA Plan Concept Part 1: High Deductible Health Plan HSA Concept Intended to cover serious illness or injury For 2006 Single Family Minimum Deductible* $1,050 $2,100 Max. Out of Pocket** $5,250 $10,500 HSA Concept Part 2: Health Savings Account Made by: Employer, Employee, and/or other party. Pays for small expenses until deductible is met. For 2006 Single Family Max Contribution Up to deductible $2,700 $5,450

Advantages of an HSA Program with Chamber Insurance Trust (CIT) Combines the buying power of thousands of chamber members Small and mid-sized companies receive competitively-priced benefits packages in comparison to large companies Offers several plan design options Created with input from local Chamber of Commerce executives and members

Plan Design Matters HSA Bank surveyed nearly 200 agents and employers regarding plan design More than 83% of employers contribute to their employees’ HSAs Of those employers, 78% contribute at least 20% of the deductible in the 1st year Of those employers, 71% contribute at least 20% of the deductible beyond the 1st year Nearly 72% of employers pay the set up fees Nearly 25% of employers pay the monthly fees

Communication/Education Employers that offered multiple health plan options indicate that those who spent 90 minutes or more educating employees on the HSA concept had a more than 21 percent higher acceptance rate (2006 HSA Bank Survey) Financial gain Immediate: Employee acceptance lowers premium costs Consumers paid an average of $360 (individual) and $876 (family) less in 2005 for HSA-eligible insurance plans (ehealthinsurance – 2006) Long-term: Employees are in control of health care spending and thus decrease utilization Overcoming the stigma of an HDHP Communication/education enables employees to see beyond a higher deductible and realize the benefits an HSA plan offers

Review of Key Points HSA Concept has two parts High Deductible Health Plan Health Savings Account CIT program provides buying power and flexibility Design of an HSA program determines the success of an HSA program Communication & education drive acceptance

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