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The Health Savings Account (HSA) NIA/Combined presents: About Assurant Health U.S. individual medical market leader In business over 110 years More than 1,000,000 customers 1 1 Assurant Health is the brand name for products underwritten and issued by Time Insurance Company.
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The Health Savings Account (HSA) NIA/Combined presents:
About Assurant Health • U.S. individual medical market leader • In business over 110 years • More than 1,000,000 customers1 1Assurant Health is the brand name for products underwritten and issued by Time Insurance Company.
Assurant Health—an HSA leader • At the forefront of HSA legislation • Sold the first HSA • Expert in account administration • Offers one of the only custodial accounts in the country providing seamless administration option with no fees
What is an HSA? • Tax-sheltered savings account • Allows for the accumulation of funds to pay for qualified current and future health care expenses • Paired with a qualified high deductible health insurance plan • Together, the high deductible plan and HSA provide: • Premium savings • Tax advantages • Investment opportunities
Huge new opportunity HSAs are: • Tax free • Flexible • Permanent • Portable Assurant Health makes HSAs simple and easy
How big is the HSA market? • Congressional analysts estimate up to 40 million accounts will be created over the next 10 years • Everyone2 with a qualified high deductible plan is eligible • HSAs make high deductible medical plans more attractive and easier to sell than ever before 2To be eligible, the qualified high deductible health plan must be the client’s only major medical coverage.
Federal guidelines • Annual contribution limits for 2006 are the lesser of: 1) The deductible or 2) $2,700 (individual) / $5,450 (family) • Individuals 55 and over are allowed to contribute an additional $700 for 2006 • Unused MSA plan funds may be rolled over into an HSA without penalty • No first-dollar benefits except for wellness
Family deductibles What is a common family deductible? A common family deductible refers to the accumulation of all medical expenses for all covered persons to meet a single deductible
HSA advantages • Funds are contributed tax free • Funds gain interest tax free • Withdrawals for qualified medical expenses are tax free • Funds can be withdrawn at age 65 for other purposes without penalty—only ordinary income tax applies (A 10% penalty plus ordinary income tax applies if funds are withdrawn before age 65 for non-medical expenses)
Eligible expenses Qualified withdrawals: • Eligible medical expenses as defined under Section 213 (d) of the IRS code • Medically necessary services • Deductibles and coinsurance • Vision correction • Dental expenses • Non-prescription drugs • Qualified long-term care premiums • COBRA continuation premiums • Premiums while unemployed • Medicare Part A, B and D premiums (not Medicare supplemental premiums)
Cost comparison scenario • Family coverage (husband and wife are 37 years old, have two children) • 28% federal tax bracket • Living in metropolitan area • $1,500 in claims
HSA administration options • HSA Fundamentals • feeless, seamless administration • HSA Tools • enhanced administration
HSA Fundamentals—feeless, seamless administration • No administrative, setup or user fees • Competitive interest rates • Optional automatic claims payment • Several contribution options • Monthly, quarterly, semi-annual, annual
HSA Tools—enhanced administration option • VISA debit card • Simple, comprehensive online features • Competitive interest rates • All for only $3.95 per month • Fee not applicable in AZ, GA and NC
Money withdrawal methods HSA Fundamentals • Automatic disbursement method • Manual disbursement method Assurant Health HSA Tools • VISA debit card
Clients save premium, reduce taxes and build savings • Unused funds accumulate from year to year • Use the money to pay for qualified medical expenses tax free as they occur • Save money tax free for future medical expenses • Accrue savings and build a tax-sheltered fund for other expenses in retirement
Get a jump on the competition • Since everyone with a qualified high deductible medical plan is eligible, these accounts will be in big demand • Don’t lose a sale to a competitor because you don’t offer them • Assurant Health has a market leadership position • Your HSA experts at Assurant Health are ready to assist you
For more information or to obtain additional HSA sales materials, see www.assuranthealthsales.com Want more information?