1. HSAs: Do the Math Eric Johnson Regional Sales Manager, First Horizon Msaver 817-366-7536 cell | EDJohnson@FirstHorizon.com

2. Please sign in & out and include your license # Please dont leave early Course Name: HSAs: Do the Math! Course Number: 37904 Provider: Agent Allies, LLC Provider Number: 3626 This course has been approved by the Insurance Continuing Education Committee as New Mexico Insurance Continuing Education Course Number 37904 for 1 hour of credit. 1 Hour CE Credit New Mexico

3. Art or Science? HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

4. When you lead with science… HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

5. Step 1: Get their attention HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

6. Lead with the Art! HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

7. Do the Math! HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

8. Copay vs. HSA $3k deductible 100% Copay Plan $3k deductible 100% HDHP HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

9. Plan Design – No Copays $3,000 Deductible 100% coverage after deductible Dr: $30 Rx: $10 / $40 / $60 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

10. Plan Design – No Copays $3,000 Deductible 100% coverage after deductible Dr: Negotiated rate / deduct. Rx: Negotiated rate / deduct. HSA $3,000 Deductible 100% coverage after deductible Dr: $30 Rx: $10 / $40 / $60 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

11. Plan Design – No Copays $3,000 Deductible 100% coverage after deductible Dr: $30 Rx: $10 / $40 / $60 Monthly: $347 Yearly:$4,164 $3,000 Deductible 100% coverage after deductible Dr: Negotiated rate / deduct. Rx: Negotiated rate / deduct. Monthly: $297 Yearly:$3,564 COPAY HSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

12. Premium Savings – Put in HSA $3,000 Deductible 100% coverage after deductible Dr: $30 Rx: $10 / $40 / $60 Monthly: $347 Yearly:$4,164 $3,000 Deductible 100% coverage after deductible Dr: Negotiated rate / deduct. Rx: Negotiated rate / deduct. Monthly: $297 Yearly: $3,564 COPAY HSA $600/year HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

13. Whats the Risk? $3,000 Deductible Doctor copays Prescription copays (all paid with after tax dollars) COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

14. Whats the Risk? $3,000 Deductible Doctor copays Prescription copays (all paid with after tax dollars) $3,000 Deductible $600 deposited in HSA $2,400 Total Exposure (all paid with pre-tax dollars) COPAYHSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

15. Example 1 Low Utilizer HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

16. Low Utilizer Annual physical: $0 No other doctor visits or prescriptions No refund from insurance company COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

17. Low Utilizer Annual physical: $0 No other doctor visits or prescriptions $600 in HSA to use for dental, vision, or future medical expenses HSA Annual physical: $0 No other doctor visits or prescriptions No refund from insurance company COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

18. Qualified Medical Expenses HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

19. Great R.O.I. for Employers Employers will get their moneys worth Low Utilizers will appreciate their benefits Employees will be happier HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

20. The Winner and New Champion HSA COPAY HSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

21. Example 2 Medium Utilizer HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

22. Medium Utilizer Annual physical: $0 COPAY HSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

23. Medium Utilizer Annual physical: $0 2 sick visits:$60 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

24. Medium Utilizer Annual physical: $0 2 sick visits:??? HSA Annual physical: $0 2 sick visits:$60 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

25. Price Transparency Tools HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. www.FirstHorizonMsaver.com

26. Price Transparency Tools Office Visit, Established Patient, Level 2 (zip code 32807) Minor problem requiring a limited exam and treatment – approximately 10 minutes with the doctor $70 Office Visit, Established Patient, Level 3 (zip code 32807) Moderate problem requiring counseling and treatment, may require coordination of care with other providers – approximately 15 minutes with the doctor $113 HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

27. Medium Utilizer Annual physical: $0 2 sick visits:$60 Annual physical: $0 COPAYHSA 2 sick visits:$226 HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

28. Medium Utilizer Annual physical: $0 2 sick visits:$60 Synthroid ($10)$120 Atenolol ($8)$96 Lipitor ($60)$720 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

29. Medium Utilizer Annual physical: $0 2 sick visits:$60 Synthroid ($10)$120 Atenolol ($8)$96 Lipitor ($60)$720 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. Annual physical: $0 2 sick visits:$226 Synthroid Atenolol Lipitor HSA ?

30. Price Transparency Tools HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. www.MyFloridaRx.com

31. Price Transparency Tools HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. www.FirstHorizonMsaver.com

32. Price Transparency Tools HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. www.Humana.com

33. Synthroid (100 MCG ) HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. $26.09$20.35 $20.74 $22.83 $20.79 $18.24

34. Atenolol (100 MG ) HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. Not Listed $6.07 $8.99 $10.49 $6.32 $7.65

35. Lipitor (10 MG ) HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. Not Listed $95.27 $97.41 $99.95 $96.59 $88.80

36. Medium Utilizer Annual physical: $0 2 sick visits:$60 Synthroid ($10)$120 Atenolol ($8)$96 Lipitor ($60)$720 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. Annual physical: $0 2 sick visits:$226 Synthroid ($18)$216 Atenolol ($8)$96 Lipitor($89)$1,068 HSA

37. Medium Utilizer Annual physical: $0 2 sick visits:$60 Synthroid ($10)$120 Atenolol ($8)$96 Lipitor ($60)$720 Total$996 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. Annual physical: $0 2 sick visits:$226 Synthroid ($18)$216 Atenolol ($8)$96 Lipitor($89)$1,068 Total$1,606 HSA

38. Medium Utilizer Total: $996 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. Total: $1,606 minus HSA: $ 600 HSA

39. Medium Utilizer Total: $996 Total (after tax): $996 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. Total: $1,606 minus HSA: $ 600 Total: $1,006 HSA

40. Federal Income Tax Brackets 2010 HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. Tax RateMost Single FilersMarried Couples Filing Jointly 10%Not over $8,375Not over $16,750 15%$8,375 – $34,000$16,750 – $68,000 25%$34,000 – $82,400$68,000 – $137,300 28%$82,400 – $171,850$137,300 – $209,250 33%$171,850 – $373,650$209,250 – $373,650 35%Over $373,650

41. Medium Utilizer Total: $996 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. Total: $1,606 minus HSA: $600 minus Tax Savings $400 (25%) HSA

42. FICA Tax Rate 2010 HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. 6.2% of first $106,800 1.45% with no limit 7.65% matched by employer TOTAL

43. Texas Sales Tax Holiday HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

45. Medium Utilizer Total: $996 Total (after tax): $996 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. Total: $1,606 minus HSA: $600 minus Tax Savings $400 (25%) Total: $606 HSA

46. Medium Utilizer Total: $996 Total (after tax): $996 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. Total: $1,606 minus HSA: $600 minus Tax Savings $400 (25%) Total: $606 Savings vs. Copay: $390 HSA

47. Medium Utilizer Total: $996 Total (after tax): $996 Remaining Risk: $3,000 + addl copays COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. Total: $1,606 minus HSA: $600 minus Tax Savings $400 (25%) Total: $606 Savings vs. Copay: $390 Remaining Risk: $1,394 HSA

48. The Winner and Still Champion HSA COPAY HSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

49. Example 3 High Utilizer HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

50. High Utilizer Annual physical: $0 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

51. High Utilizer Annual physical: $0 4 sick visits: $120 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

52. High Utilizer Annual physical: $0 4 sick visits: $120 1 Generic ($10) $120 1 Brand ($40) $480 1 Non-Form. ($60) $720 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

53. High Utilizer Annual physical: $0 4 sick visits: $120 1 Generic ($10) $120 1 Brand ($40) $480 1 Non-Form. ($60) $720 1 Hospital Visit: $3,000 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

54. High Utilizer Annual physical: $0 4 sick visits: $120 1 Generic ($10) $120 1 Brand ($40) $480 1 Non-Form. ($60) $720 1 Hospital Visit: $3,000 Total: $4,440 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

55. High Utilizer Annual physical: $0 4 sick visits: $120 1 Generic ($10) $120 1 Brand ($40) $480 1 Non-Form. ($60) $720 1 Hospital Visit: $3,000 Total: $4,440 Deductible: $3,000 COPAYHSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

56. High Utilizer Total: $4,440 Deductible: $3000 minus HSA: $600 COPAY HSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

57. High Utilizer Total: $4,440 Deductible: $3000 minus HSA: $600 minus tax savings: $750 COPAY HSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

58. High Utilizer Total: $4,440 Total (after tax): $4,440 Deductible: $3,000 minus HSA: $600 minus tax savings: $750 Total (after tax): $1,650 COPAY HSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

59. High Utilizer Total: $4,440 Total (after tax): $4,440 Deductible: $3,000 minus HSA: $600 minus tax savings: $750 Total (after tax): $1,650 Savings: $2,790 COPAY HSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

60. High Utilizer Total: $4,440 Total (after tax): $4,440 Remaining Risk:Copays Deductible: $3,000 minus HSA: $600 minus tax savings: $750 Total (after tax): $1,650 Savings: $2,790 COPAY HSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

61. High Utilizer Annual physical: $0 6 sick visits: $180 2 Generic ($10) $240 2 Brand ($40) $960 2 Non-Form. ($60) $1,440 1 Hospital Visit: $3,000 Total: $5,820 COPAY HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

62. High Utilizer Total: $5,820 Total (after tax): $5,820 Deductible: $3,000 minus HSA: $600 minus tax savings: $750 Total (after tax): $1,650 Savings: $4,170 COPAY HSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

63. High Utilizer Total: $5,820 Total (after tax): $5,820 Remaining Risk:Copays Deductible: $3,000 minus HSA: $600 minus tax savings: $750 Total (after tax): $1,650 Savings: $4,170 Remaining Risk: $0 COPAY HSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

64. Knockout! HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

65. The Undisputed Champion HSA COPAY HSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

66. This is the money you could be saving by switching to an HSA HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc. Note: You could also save this money by switching to Geico.

67. Dual Option Choice is an important part of consumerism At renewal, employees will do the selling HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

68. The Science of HSAs HSA Communication Strategies | Copyright 2009 First Horizon Msaver, Inc.

69. Frequently Asked Questions www.treas.gov/offices/public-affairs/hsa/faq.shtml (The remaining slides all come from the above link.) HSA s: Frequently Asked Questions | Copyright 2010 Eric Johnson

70. Questions? HSA s: Frequently Asked Questions | Copyright 2010 Eric Johnson

71. Thank You!!! HSA s: Frequently Asked Questions | Copyright 2010 Eric Johnson