Unfortunately the HSA account needed to be established BEFORE the expense was incurred, or else it is not eligible for tax free withdrawal out of your HSA.

For all you procrastinators out there, here’s my advice… take 5 minutes and set up your HSA with HSA Bank.  They have no setup fees and offer very competitive interest rates along with thousands of investment options.

HSA Bank Home Office

HSA Bank was one of the very first financial institutions that recognized the importance of Consumer Driven Health Plans.  They opened their first Medical Savings Account in 1997.  They currently have nearly 400,000 HSA accounts holding over $1 billion in HSA deposits.

Nobody knows for sure how many people are eligible to set up an HSA and have yet to do so.  It only takes a few minutes and it could save you a lot of money on your next tax return.

We had the privilege of interviewing several HSA Bank executives recently on Insurance Talk.

September 3, 2011 Dean Mason, CEO

September 10, 2011 Phil Hartsig, Regional Vice President

September 17, 2011 Itamar Romanini, Senior Vice President of Business Development

HSA consumers here in the Kansas City area (and nationwide beginning in October with over 1500 new blood draw locations) have access to special pricing for lab work. Show them your HSA debit card and you can save 10% off your already discounted lab tests!

HSA Coupon

For more information about Metabolic Research Laboratories along with all the tests available call 913-345-0285 or visit

www.24hrblood.com

Here is a direct link to some of the tests that HSA participants will receive special discounts on

Direct To Consumer Pricing

We enjoyed having Metabolic Research Lab representatives Heather & Dr. Al with us on “Insurance Talk” radio show Saturday August 27th, 2011. Click here to listen to the entire show podcast.

Patient Protection and Affordable Care Act (aka ObamaCare) requires all US Citizens to purchase a private health insurance policy or face a penalty by 2014.

The Eleventh Circuit Court of Appeals Strikes Down PPACA’s Individual Mandate

What do you think?

US says insurers must fully cover birth control

All new health insurance policies effective after August 1st, 2012 will include this mandate.

Kathleen Sebelius also stated, “Under the new law, it will be illegal to charge women more just because of their gender.”  Although there could be some savings for health insurance companies due to slightly lower pregnancy rates, the cost of these medications that can range as low as $160 per year to over $1000 per year will cost far more than any potential savings.

There are other mandates hiding in Obamacare that might level the rates between men and women, but this isn’t one of them.

Did you know there is a way for you to have a company put money into your Health Savings Account which gives you the full tax deduction? And the best part is that the service is free!

First go to www.myHSArewards.com and set up a free account. Then the next time you want to order something online from one of over 450 participating businesses such as Barnes & Noble, a Southwest Airline ticket, or a rental car from Hotwire, go back to www.myHSArewards.com and login. Then click on “Partners” which sends you directly to the affiliated website you were planning on purchasing from, and buy something. Now your purchase has earned you an average of 4% cash for your HSA.

Free service.

Free HSA deposits.

Now THAT’S what I call a win-win situation!

Meet one of the founders of myHSArewards as he explains the top 10 reasons you should have an HSA…

TOP 10 REASONS TO OPEN AN HSA

Dave Ramsey's ELP

As the health insurance Endorsed Local Provider (ELP) for Dave Ramsey here in the Kansas City area I am very pleased to find out just how supportive Dave Ramsey has always been towards Health Savings Accounts (HSAs).

How to SAVE MONEY on Health Insurance   

Although HSA qualified plans do work very well for healthy people, HSA qualified plans are the type of plans I want and choose for my family knowing that a catastrophic medical condition could happen at any time.

A typical expensive low deductible copay plan exposes high utilizers not only to the deductible, but also coinsurance (the 80/20 part) and unending copays.  This in some cases can add up to thousands more than the initial deductible.

Most HSA qualified High Deductible Health Plans (HDHPs) have one deductible for all inpatient, outpatient, office visits, testing, prescription drugs, surgery expenses, emergency room visits and physician services, and then pay all remaining in-network medical expenses at 100% for the rest of that calendar year.  So you have a larger deductible to begin with, but these plans are the only ones that truly have a maximum out-of-pocket.  By the time you calculate the annual premium savings these plans typically offer and subtract that from the annual deductible, these are the best plans you could own for both healthy and unhealthy situations.

So how much money could you be saving each month?  If you are self employed or want to find quotes for you or your family, click here.  If you are a business owner or a group administrator and are tired of paying too much for health insurance every month, CALL US!  (913) 432-2732 or visit www.missionHSA.com.

Take your personal HSA tax deduction on line 25

Since this blog is dedicated to offering the most up-to-date Health Savings Account information, we want to make sure you maximize your HSA for 2010. Remember, if you were covered by an HSA qualified High Deductible Health Plan (HDHP) on or before December 1st, 2010 then you have until you file your taxes (or April 15th 2011) to finish up your 2010 contributions and get a 2010 tax deduction.

2010 Contribution limits:
Single – $3050
Family – $6150
Catch up contribution (age 55 or older) $1000 per person*

2011 Contribution limits:
Single – $3050
Family – $6150
Catch up contribution (age 55 or older) $1000 per person*

*If both are 55+ then both have to open HSA accounts for both to participate in catch up contribution

These limits are also stated on our website and on the U.S. Department of Treasury website.

These maximum contributions will not be pro-rated if your HSA qualified health insurance plan (HDHP) was either in force all 12 months of 2010 OR if it was in force by December 1st of 2010 AND remains in force all 2011.

Your tax deduction is based on how much you DEPOSIT into your HSA, not how much you spend.

You do not have to itemize to get the tax deduction.

You do NOT have to pay your eligible expenses out of your HSA.

HSA Eligible Medical Expenses

You are required to keep receipts of your eligible expenses in case the IRS audits you. You can choose to reimburse yourself at a later date up to the medical receipts you have accumulated without being subject to 20% penalty or taxable income.

The triple-tax advantages (tax deductible deposits, tax free interest earned, and tax free withdraws for eligible medical expenses) only available with HSAs make them an important tax planning tool that is unmatched when used properly.

Other statistics show that nearly half of the 10 million Americans covered by the required HDHP insurance plans have not established their HSA account, and therefore are not participating in the tax savings they offer. Although OFM Benefits is one of the nation’s premier HSA focused insurance agencies, there are probably some of you that have procrastinated setting up your account. If you have been covered by your HDHP before or on December 1st, 2010 and haven’t set up your HSA, it’s not too late!

OFM is proud to recommend HSA Bank because of their great combination of low fees, competitive interest rates, and a large number of investment options.  With over 350,000 HSA accounts and over $1 billion in HSA deposits, HSA Bank has established themselves as one of the nations leading HSA administrators.  They also recently eliminated all setup fees.

As many Americans are facing huge health insurance premium increases and revenue decreases, HSA qualified plans are becoming even more popular. The average household pays over $13,000 per year for health insurance premiums! We feel HSA qualified plans offer the best value in healthcare today.

If you are self employed or a business owner and would like to receive the premium savings and tax deductions only available with HSAs, please visit www.missionHSA.com

www.missionHSA.com

Scott Borden
Host of “Insurance Talk with Scott & Mike” Saturday mornings 7-8 on KCMO Talk Radio 710
  OFM Benefits Consulting, LLC
6400 Glenwood, Suite 307
Overland Park, KS 66202
913-432-2732
913-432-2061 fax

Scott Borden & Mike Breitenbach

Dave Ramsey tells everybody to get an HSA three hours a day five days a week, but people still don’t understand them. As the Endorsed Local Provider (ELP) here in Kansas City for Dave Ramsey listeners we feel education is the key.  If people fully understood just how much premium can be saved with an HSA qualified High Deductible Health Plan (HDHP) along with the triple tax advantages only available with an HSA then everybody would want one!

One hour every Saturday morning is a good start…

Be sure to tune in to the live show between 7 and 8 central time Saturday mornings here in Kansas City on KCMO Talk Radio 710 or on the internet at www.710KCMO.com.  Feel free to call in to the radio show at 913-576-7710 with specific questions about HSAs, HRAs, FSAs, individual or group health insurance.

Click here to access our podcast page (powered by FeedBurner) where you can listen to or download all our shows.

Here are the podcasts of some of our shows along with a listing of the Business of the Week (BOTW)

InsuranceTalk September 17, 2011 – Guest Interview – Itamar Romanini – Sr. Vice President of Business Development – HSA Bank

InsuranceTalk September 10, 2011 – Guest Interview – Phil Hartsig – Regional Vice President - HSA Bank

InsuranceTalk September 3, 2011 – Guest Interview Dean Mason, CEO – HSA Bank

InsuranceTalk August 27, 2011 - BOTW – Dr. Al & Heather - www.24hrBlood.com

InsuranceTalk August 20, 2011 – BOTW – Sanders McConnell – www.myHSArewards.com

InsuranceTalk August 13, 2011 – BOTW – Wick Hollingsworth – Farm Bureau Insurance

InsuranceTalk August 6, 2011 – BOTW – Jennifer Decker – WellStream Medical

InsuranceTalk July 30, 2011 - Guest Host Marcus Hood, BOTW Tommy Disidore – Commercial Realtor Serrone & Co., Inc. 913-908-9933

InsuranceTalk July 23, 2011 - Special “MythBuster” edition dispelling myths about health insurance and HSAs

InsuranceTalk July 16, 2011 - Introducing new radio show sponsor HSA Bank

InsuranceTalk July 9, 2011 - Guest Host Marcus Hood

InsuranceTalk July 2, 2011 - Guest Host Mark Durkin, www.MDurkinPlanning.com

InsuranceTalk June 25, 2011

InsuranceTalk June 18, 2011

InsuranceTalk June 11, 2011

InsuranceTalk June 4, 2011

InsuranceTalk May 28, 2011

InsuranceTalk May 21, 2011

InsuranceTalk May 14, 2011

InsuranceTalk May 7, 2011

InsuranceTalk April 30, 2011

InsuranceTalk April 23, 2011 - BOTW – Larry & Cindy Burt – www.interiorsurface.com

InsuranceTalk April 16, 2011 Guest Host – Marcus Hood, BOTW – Dr. Alyssa Zonarich – First Choice Chiropractic, www.DrAlyssaOnline.com

InsuranceTalk April 9, 2011 special guest interview with  Judy Brigham and Ken Hunt, www.cityofiola.com

InsuranceTalk April 2, 2011 BOTW – Ed Roche, www.StrategyNewMedia.com

InsuranceTalk March 26, 2011 BOTW – Bob Bonebrake DC bbonebrake@hotmail.com

InsuranceTalk March 19, 2011 Guest Host Marcus Hood www.marcushood.com, BOTW – Andrea Corbin andrea_corbin@sbcglobal.net

InsuranceTalk March 12, 2011 BOTW – Mark Durkin www.mdurkinplanning.com

InsuranceTalk March 5, 2011 BOTW – Marcus Hood OFM Benefits Consulting www.MarcusHood.com

InsuranceTalk February 26, 2011 BOTW - Dr. Steven Johnson DDS sljdds81@gmail.com

InsuranceTalk February 19, 2011 BOTW – Myra Schulze, Summit Insurance Group myra@summitinsurancegroup.com

InsuranceTalk February 12, 2011 BOTW – Jeff Voorhies, Voorhies Cleaning www.voorhiescleaning.com

InsuranceTalk February 5, 2011
BOTW – Shane Jones, The Astra Group www.ASTRAgroup.com

InsuranceTalk January 29, 2011
Guest – Dr. Michael Monaco – www.mdvip.com/Choose-a-doctor/dr-michael-monaco-md-1523.aspx
BOTW – Phil Crafton – Commercial Property Solutions Corp Phil@cps-kc.com

InsuranceTalk January 22, 2011
BOTW - Judy Brigham, City Administrator of Iola, KS www.cityofiola.com/administration.

InsuranceTalk January 15, 2011
BOTW – Lance Tomlin, Results Technology www.ResultsTechnology.com

InsuranceTalk January 8, 2011
BOTW – Brenda Walters, Cornerstone Home Improvement www.chi-kc.com

InsuranceTalk January 1, 2011
BOTW – Cheryl Fromong, Keller Williams Realtor, www.CherylFromong.com

InsuranceTalk December 18, 2010
BOTW – Dr. William Bucher, Bucher Family Dentistry www.bucherdental.com

InsuranceTalk December 11, 2010
BOTW – Dr. Meagan Leahy, Leahy Chiropractic www.leahychiropractic.com

Here is a link to the radio show’s podcast page:

INSURANCE TALK with Scott & Mike

Of course you can call our office at any time (913-432-2732 ext. 1) or visit our website www.missionHSA.com if you want to see just how an HSA qualified health insurance plan would work for you or your business.  We look forward to hearing from you!

Is there a smart way to purchase health insurance without breaking the bank?

There are millions of self-employed Americans out there facing the same situation. Over the past 12 years since I first found Medical Savings Accounts (MSAs), I have worked with hundreds of health insurance agents trying to get them to recommend the lower cost Health Savings Account (HSA) qualified plans to self-employed people and businesses. Still today very few health insurance agents agree with me. The most common complaint I hear from agents is that HSAs are too confusing and too complicated. People just don’t understand them. They are too risky. You name it, I’ve heard it all.

Are HSAs really difficult to understand?

I’ll let you decide…

Which health insurance plan should I choose for my family of 5 living in Kansas?

Plan 1: Blue Cross Blue Shield Premium Plan 2011 Outline of Coverage (to include name brand drugs which can costs tens of thousands per year in some cancer or other dread disease situations)
Monthly premium $775
$500 calendar year deductible per person usually with a maximum of 3 decuctibles per family
Co-Insurance – 80% up to the stop loss of $10,000
Example: $10,000 x 20% = $2,000 co-insurance out-of-pocket
Primary care physician $20 co-pay (some plans charge more for specialists)
Prescription medication $10 tier 1 generic (350 of which are now $4)
Prescription medication $50 tier 2 formulary name brand
Prescription medication $80 tier 3 non-formulary name brand
Emergency Room $100 co-pay then deductibe and 20% co-insurance
Maximum out-of-pocket $2,500 per individual (NOT including co-pays)
Maximum out-of-pocket $7,500 per family (NOT including co-pays)

Plan 2: Humana Autograph Total + Rx HSA
Monthly premium $422
$7,000 family calendar year deductible
Maximum out-of-pocket $7,000 per family
Take premium savings ($353/month) and deposit into HSA
Use HSA to pay smaller bills
If I don’t spend my HSA ($4,236 in the first year), I keep it.
The way I see it, the first $4,236 of all my medical bills are “paid” at 100% with money that would have gone to the insurance company!

Which is more confusing? That wasn’t very difficult to understand, now was it. Plan 2 simply requires a deductible be satisfied then covers all remaining expenses including inpatient, outpatient, physician visits, and prescription drugs for my entire family at 100% for the rest of the calendar year.

Which would be the best to own in a healthy year?

The lower premium plan always saves money in a healthy year.

Which would be the best to own should I come down with a major disease?

In order to decide which plan “would be the best” we have to calculate which plan would cover the disease at the lowest out-of-pocket expense. Does my monthly premium play a role in this calculation? ABSOLUTELY!

With Plan1 we have to know how many physician visits, how many prescription drugs, how many outpatient treatments, how many emergency room visits, was surgery involved, etc. The policy claims “$2,500 maximum out-of-pocket per person” but unfortunately that didn’t include the co-pays. It is possible in this type of a situation to have literally thousands of dollars worth of co-pays above and beyond the “$2,500 maximum out-of-pocket”

Plan 1 summary:

$9,300 annual premium ($775 x 12)
+$2,500 “maximum out-of-pocket” (deductible + co-insurance)
+$1,000 (hypothetical) additional co-pays for additional services
+ $0 assuming no additional expenses for the rest of the family
= $12,800 TOTAL COST

Plan 2 summary:

$5,064 annual premium ($422 x 12)
+$7,000 family maximum out-of-pocket maximum
=$12,064 TOTAL COST

So even if a major claim occurs in the first year, the HSA qualified plan works best!

Once again – requires a little study and math, but not very difficult.

Once money starts accumulating in the HSA then feel free to go to a higher deductible which saves even more money. This grows my HSA even faster!

Unfortunately most health insurance agents don’t want to take the time to educate the public on a lower cost way of managing health care expenses. The lower monthly insurance premiums results in lower commissions. Why should they work harder to make less? As long as 95% of the public is willing to keep paying rediculous health insurance premiums they will keep on selling them.

If I hear one more health insurance agent saying HSAs are too complicated for people to understand I am going to…

I feel much better now!

Did I mention that HSAs offer tremendous tax advantages also?

HSA consumers here in the Kansas City area now have access to special pricing for lab work. Show them your HSA debit card and you can save 10% off your already discounted lab tests!

HSA Coupon

For more information about Metabolic Research Laboratories along with all the tests available call 913-345-0285 or visit

www.24hrblood.com

Here is a direct link to some of the tests that HSA participants will receive special discounts on

Direct To Consumer Pricing