1. Health Savings Account

2. 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

3. 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

4. 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

5. 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

6. 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

7. Thank you