1. CONSUMER DRIVEN HEALTH CARE
Are You Up to Speed?
Presented By:
John V. Stewart, MSM, CDHC
Stewart’s Insurance Depot
S.E. Georgia 912.434.2090
N.E. Florida 904.729.4025
Metro Indianapolis, IN 317.570.1271
Metro Cincinnati, OH 513.868.0040
Nationwide 866.203.5097

2. Stewart's Insurance Depot
CONSUMER AWARENESS
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3. Stewart's Insurance Depot
Consumer Awareness
Some myths and facts:
Health insurance companies make lots of money on us!
Fact: Health Insurance Companies make 3 cents on
every dollar.
Fact: The insurance industry is the only industry
required by law to make a profit.
So where does our insurance dollars go?
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4. Stewart's Insurance Depot
So where does our insurance dollars go?
If 87 cents of every major medical insurance dollar goes to covering us, what can I
do to help control my costs and keep my insurance premiums as low as possible?
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5. Stewart's Insurance Depot
Your personal Survey on Major Medical Insurance
Cost savings start with what kind of major medical plan I am looking to purchase.
The plan will cover with ages of:
I would like a ( local, regional or national ) insurance carrier
What amount do I want to pay as a deductible?
Do I want a coinsurance amount (what % 90/10, 80/20,
70/30, 50/50)?
How many times a year do I go to the doctor?
Do I want a plan that has doctor copays?
How many prescriptions do I purchase a year?
Do I want a plan that has prescription drug coverage?
Do I want a tax advantage plan with qualifying high
deductible insurance? Y or N
How much am I willing to put into an HSA account/year?
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6. Stewart's Insurance Depot
How much do you want to spend on Major Medical Insurance?
George Ready (Age 30) 32034
Single
Plan Type Deductible Coinsurance Total Out of Pocket Copay Premium % Cost Difference Cost of Copay/year
Saver $2,500.00 $3,000.00 $5,500.00 N/A $70.80 Base of % Base No Copay
80% Plan $2,500.00 $3,000.00 $5,500.00 N/A $106.68 33.63%
Copay Plan $2,500.00 $3,000.00 $5,500.00 $35.00 $110.57 35.97% $477.24
100% Plan $2,500.00 $0.00 $2,500.00 N/A $127.09 44.29%
Single HSA * $2,500.00 $0.00 $2,500.00 N/A $128.02 44.70%
Nancy Ready (Age 30) 32034
Single
Plan Type Deductible Coinsurance Total Out of Pocket Copay Premium % Cost Difference Cost of Copay/year
Saver $2,500.00 $3,000.00 $5,500.00 N/A $91.94 Base of % Base No Copay
80% Plan $2,500.00 $3,000.00 $5,500.00 N/A $140.08 34.37%
Copay Plan $2,500.00 $3,000.00 $5,500.00 $35.00 $166.98 44.94% $900.48
100% Plan $2,500.00 $0.00 $2,500.00 N/A $165.13 44.32%
Single HSA * $2,500.00 $0.00 $2,500.00 N/A $167.91 45.24%
George Ready & Family (Parents Age 30) 32034
Plan Type Deductible Coinsurance Total Out of Pocket Copay Premium % Cost Difference Cost of Copay/year
Saver (2) $5,000.00 $6,000.00 $11,000.00 N/A $268.83 Base of % Base No Copay
80% Plan (2) $5,000.00 $6,000.00 $11,000.00 N/A $270.68 0.68%
Copay Plan (2) $5,000.00 $6,000.00 $11,000.00 $35.00 $506.15 46.89% $2,847.84
Plan 100 (2) $5,000.00 $0.00 $5,000.00 N/A $481.89 44.21%
Family HSA (1)* $5,000.00 $0.00 $5,000.00 N/A $451.67 40.48%
Gearge Ready & Wife (Age 60)
32034
Plan Type Deductible Coinsurance Total Out of Pocket Copay Premium % Cost Difference Cost of Copay/year
Saver (2) $10,000.00 $6,000.00 $26,000.00 N/A $285.72 Base of % Base No Copay
80% Plan (2) (2) $10,000.00 $6,000.00 $26,000.00 N/A $374.78 23.76%
Copay Plan (2) $10,000.00 $6,000.00 $26,000.00 $35.00 $445.28 35.83% $1,914.72
Plan 100 (2) $10,000.00 $0.00 $20,000.00 N/A $443.43 35.57%
Family HSA (1)* $10,000.00 $0.00 $10,000.00 N/A $521.38 45.20%
() Indicates number of persons needed to meet deductible requirement
* HSAs have benefit of a health savings account and tax deduction of income and 0 tax when used for IRS acceptable major medical procedures and Rxs
Note: the plans outside the HSAs and 0 coinsurance plans have larger out-of-pockets
Look what it costs to have an office visit copay and other bells and whistles.
Note: rich benefit plan 6

7. Stewart's Insurance Depot
WHY HSA QUALIFIED PLANS?
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8. Stewart's Insurance Depot
Why HSA Qualified Plans?
• You are in control of how you use your health care dollars.
• Become more involved in managing your cost of care.
• Learn how to shop for the best prices for your care.
• Your tax-advantage contributions to your HSA account grow over
time.
• It is your money to use tax-free for qualified medical expenses.
• There is no “use it or lose it” philosophy. If you don’t use it, save it
for next year. Or better yet, for retirement.
• After age 65, HSA funds can be used for non-qualified expenses and
only income tax is assessed.
From HSABank website 8

9. Stewart's Insurance Depot
An HSA Growth Illustration
Income tax reduction anyone? The Happy family with George age 30 and Susan age
30 have changed from a conventional major medical
Contribution 2011 Limits Single Family plan to a High deductible HSA qualified family plan.
Minimum Deductible $1,200 $2,400 No kids yet, but who knows…. Remember
HSA/HDHP family plans; all insured members have
Maximum Out-of-Pocket $5,950 $11,900
access to these funds for medical expenses as
Contribution Limit $3,050 $6,150
allowable by the IRS. When George and Susan
Catch-up Contribution (55 or older) $1,000 $1,000 convert to Medicare at age 65, here is what they
have.
Estimates Below for this illustration:
Enter your average contribution per year: $ 4,000.00
Enter your average medical expenses per year: $ 850.00
How many years will your account accumulate? 35
Enter your federal tax bracket: 28%
Enter your state tax: Florida no state income tax
Enter your bank interest rate: 3%
Results of the Happy family having a HDHP/HSA:
Future Value Calculator
Net Contributions: $110,250.00
Net Contributions Per Year: $3,150.00
Tax Savings on Contributions: $30,870.00
Tax Savings on tax-deferred growth: $22,457.56
Future Value: $190,455.56 From HSABank website
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