1. Health Savings Accounts
Blue Cross Blue Shield
Seneca Falls Savings Bank
Auxiliary Services Corporation

2. It is all about the money
$306 - $1,533 in your paycheck from savings on your health insurance premiums
$1,300- $2,600 placed in your Health Savings Account by ASC

3. Health Savings Accounts and Tax Savings
IRS allows only qualified individuals and families to have Health Savings Account
May only be covered by a high deductible plan
Not eligible if you have Medicare or other health insurance
Not eligible is you have received veterans benefits in the last 3 month
Health Savings Account-
High Deductible Plan
only = +
Qualified

4. High Deductible Plan – Blue Cross Blue Shield
Preventative Care member pays $0
Deductible $1300/$2600
Member pays
Health Savings Account
$1300/$2600
Co-insurance Coverage, Member pays ...
20% Medical Services
10% Generic Drugs (Tier 1)
40% lower cost Brand Drugs (Tier 2)
50% higher cost Brand Drugs (Tier 3)
Well child visits
Physical exam
Adult immunizations
Mammography
Pap smear
Prostate cancer screening
Prescription Drugs
Lipitor $84.63
Protonix $105.92
Fosomax $54.55
Zithromax $57.52
Ambein $83.31
Celebrex $97.48
Zoloft $75.10
Paxil $67.36
Zyrtec $42.90
20% of $8500 is $1,300
20% $13,000 is $2,600
After additional $1,700/$3,400 out of pocket member pays $0

5. High Deductible Plan (HDP)
12-month commitment
Same PPO Network with Blue Card
May have Dental Vision Coverage that pays before the HDP
May only have a limited use Flexible Spending Plan (dental, vision, OTC)

6. Health Savings Accounts and Tax Savings
IRS allows
Qualified individuals and families
Contributions are tax free
Any earnings on the contributions are tax free
Withdrawals for a Qualified Medical Expense (QME) is tax free (Triple Tax Free)
Withdrawals for non-QME pay income tax plus a 20% penalty (IRA/401K rules)
Penalty waived after age 65
State, federal and FICA savings

7. Taxability $Contributions$ Tax Free $Earnings$ Tax Free $QME$ No tax
ANY EXPENSE IS A NON-qualified Medical expense
$QME$
No tax
Under 65
Any expense
Taxable +20%
Over 65
Any expense
taxable

8. Contribution Limits by IRS
Contributions limited to the deductible
Employee and Employer contributions
except those over age 55 (additional $1000 in 2011, ASC will allow for pretax payroll deduction for those over age 55 using the catch up provision)
Catch up $800 in 2007, $900 in 2008, $1,000 in 2009, 2010, 2011)
Each spouse may make a catch up provision
Prorate the catch up in the year you become eligible for medicare

9. Funding the HSA
ASC will contribute for the foreseeable future the deductible at $1300/$2600
Total after 5 years $6500/$13000

10. ASC funding the deductible
Deductible payments will be placed quarterly into each employee’s account
The money belongs to the employee when it is placed in the account
Portable – Take it with you when you leave
Rolls over from year to year
Account $ may be used in the future with a non-high deductible plan, but no future contributions can be made

11. Funding the HSA
ASC will contribute for the foreseeable future the deductible at $1300/$2600
Total after 5 years $6500/$13000

12. Health Savings Account
Actual bank account
Responsible for tracking that $ were spent on QME
$15 one-time account start up fee – paid by ASC
$2 per month checking account fee until the account reaches $3,000
Rate of return
$.01- $1, %
$2,000 – $9, %
$10,000 or more %

13. Health Savings Account
Check fees
Free debit card (Master Card logo)
Monthly statement
Must have a valid picture ID with a signature
Online banking
Checks $11 for 50 checks
May have two debit cards free (joint signer)
Driver’s lic preferred to comply with Patriot’s act