How They Work

HSAs consist of two parts; the first part is a high deductible health insurance plan. These plans usually have a deductible for single employees and a deductible for families of two or more. The second part is a savings account established after the insurance plan is put into place. The savings account is where your employer and you put savings up to your deductible on a January 1st through December 31st basis. On an annual basis, what you do not spend out of your HSA savings will roll-over to the following year. You will receive a Visa card that is attached to this account to pay for health expenses.

• Show your health insurance card.
• Receive the health plan’s discount at the time of purchase.
• Pay the discounted fee with your HSA savings account Visa.

• Show your health insurance card.
• Do not pay the Doctor anything at the time of your visit. Remember, your plan pays 100%, up to the amount you have in your savings account.
• Wait for the EOB (Explanation of Benefits) to arrive from the insurance company.
• Call the Doctor, lab or hospital; give them your Visa card number and authorize the discounted payment shown on the EOB.

• Must have an HSA eligible health plan.
• Cannot have secondary health insurance.
• Must be under the age of 65.
• Must be a full-time, permanent employee.

• Save dollars in your own savings account, owned by you, usually funded by the premium savings from your old health plan.
• You choose where dollars are spent, not the insurance company.
• 100% coverage for all services with no co-pays or co-insurance until you have exhausted your savings.
• Ability to roll savings year to year until age 65 when savings can roll into your retirement plan.
• Excellent choices of medical professionals without referral requirements.
• Superb PPO benefits with low out-of-pocket cost if HSA is funded.

• You will have high medical costs, i.e. impending surgery or a serious on-going illness,
• You have high Rx costs, i.e. Lipitor or insulin.
• You like HMO benefits with just co-pays.
• You do not want to administer a cash account.
• You do not want to take the risk of a high deductible HSA plan.
• You are a poor money manager.

• Covers medical and Rx expenses after deductible.
• PPO plan has large choice of medical providers.
• Lower premium costs.
• Lower overall maximum out-of-pocket costs compared to standard PPO’s.