360 likes | 484 Views
Profiles of HSA Users. Roy Ramthun April 2014. Meet Roy Mr. HSA. Topics: What will we cover?. Common myths about HDHPs & HSAs Distinct profiles of HSA holders How to use HSA profiles to your advantage. 2014 2015. Breaking News!. HSA Contribution Limits. HDHP Minimum Deductible.
E N D
Profiles of HSA Users Roy Ramthun April 2014
Topics: What will we cover? Common myths about HDHPs & HSAs Distinct profiles of HSA holders How to use HSA profiles to your advantage
2014 2015 Breaking News! HSA Contribution Limits HDHP Minimum Deductible HDHP Out-of-Pocket Max NOTE: The IRS must publish the official numbers by June 1.
MYTH #1 HDHPs/HSAs are only good for healthy people”
HSAsAre Good for Sick People, Too! • Preventive care is exempt from the deductible • Disease management costs are not • Catastrophic limits provide real protection • Limits apply to all covered benefits, including Rx • Limits cannot exceed (for 2014): • $6,350 for singles • $12,700 for families • ACA adopted these limits for all plans for 2014
HSAvs. ACA Limits: 2015 $6,450 $6,600 $12,900 $13,200
MYTH #2 HDHPs/HSAs are only good for young people”
HDHP Enrollment Data Age distribution of people covered by HSA-qualified HDHPs, Individual Market, January 2013
MYTH #3 HDHPs/HSAs are only good for wealthy people”
HSA Tax Deduction Data • Average tax deduction/return = $3,051 • < $50,000 -- $2,075 • $50,000 - $100,000 -- $2,410 • > $100,000 -- $3,936 • Percent of Returns, by income group • < $50,000 – 23% • $50,000 - $100,000 – 30% • > $100,000 – 47% Source = IRS Statistics of Income Bulletin (Winter 2014), data from 2012 tax returns
HSA Enrollment Data • 15.5M Americans enrolled in HDHPs • 10.7M HSA accounts • $19.3B in assets in HSA accounts (only $2.3B invested) • $2,356 = average funded HSA account balance as of 12/13 Source = Devenir, data as of 12/31/13
HSA Account Holders Unengaged Sitting Tight Pass-Thru Spender Saver Maximizer Investor
EMPLOYER STRATEGIESTo Help Sick & Low Paid Employees • HSA funding – amount & timing • HRA funding – post-deductible • Cafeteria plan benefits • FSAs, wellness programs, disease management programs, supplemental insurance • Support – education & communication
EMPLOYER STRATEGIES Don’t Undersell the HDHP • Most employees assume HDHPs offer inferior coverage • Premium savings • HSA funding can actually lead to a richer plan than before (i.e., higher actuarial value) • “Bronze” HDHP (AV = 62.0%) • AV with $500 contribution = 68.0% • AV with $1,000 contribution = 73.6% • AV with $2,000 contribution = 82.4%
EMPLOYER STRATEGIES To Help Young Employees Communicate the power of compound interest
EMPLOYER STRATEGIES Measure Engagement What data can help measure “engagement?” • How many employees never opened their HSA? • How many employees are not contributing any personal money to their HSA? • How many employees are spending every dollar contributed (i.e., minimal or zero balance)? • Are average balances or ? • Does changing the employer contribution amount or timing affect employee behavior?
EMPLOYER STRATEGIES Make Data Work for You • The more employers know about their employees, the more they can: • Improve employee well-being • Reduce costs • Generate positive experience • Meaningful, usable data can help employers: • Understand employee “engagement” • Drive or align plan strategies • If your HSA administrator cannot provide good data, it might be time to switch
EMPLOYEE STRATEGIES How to Fund the HSA • Many people can contribute more than their out-of-pocket risk • Take advantage of employer matching contributions, if offered • Pay attention to employer incentives that may increase contributions • Don’t forget to factor in tax savings • Making contributions via payroll deduction is best • If uncertain how much to contribute, use the “look back” method • Ask questions – NEVER assume!