1	Qualifying High Deductible Health Plan The Starting Point For Health Savings Accounts
2	2003 Medicare Modernization Act Created Health Savings Accounts First: A special Qualifying High Deductible Health Insurance Plan (HDHP) Second: A Tax-preferred Health Savings Account
3	HSA Eligible Individual You have a qualifying high deductible health plan (HDHP) on the first day of the month. You have no other health coverage except what is permitted under Other health coverage (see IRS Pub. 969). You are not enrolled in Medicare. You cannot be claimed as a dependent on someone else’s 2007 tax return.
4	Qualifying High Deductible Health Plan Federal Law describes certain basic requirements for insurance plans to meet in order to qualify policy holders to open tax preferred Health Savings Accounts. The criteria are different for individuals versus families (2 or more closely related persons)
5	Medicare enrollee can: Own an HSA and reimburse qualified medical expenses as well as Medicare Premiums etc. But can not contribute.
6	HSA Qualifying Insurance (HDHP) Requirements: 2008 Individuals Federally Mandated Deductible: Between $1,100 and $5,600 Maximum Annual Out-of-Pocket Expense Limit: In network can be as high as $5,600 May have different limits out of network Maximums COLA adjusted annually HDHP covers in network expenses: Above the deductible (coinsurance may apply) Above the out-of-pocket limit (100%)
7	HSA Qualifying Insurance (HDHP) Requirements: 2008 Family (more than one person) Federally Mandated Deductible: Between $2,200 and $11,200 Maximum Annual Out-of-Pocket Expense Limit: In network can be as high as $11,200 May have different limits out of network Maximums COLA Adjusted Annually HDHP covers in network expenses: Above the deductible (coinsurance may apply) Above the out-of-pocket limit (100%)
8	Additional HSA Qualifying Insurance (HDHP) Requirements In general, insurance must not cover expenses below the deductible except: Certain preventive care services may be allowed under the deductible (see also IRS Bulletin 2004-15) Until January 1, 2006 certain prescription drug benefit riders will be permitted (see IRS Bulletin 2004-15)
9	Preventive Care Safe Harbors Drugs taken by a person who has developed risk factors for a disease that has not yet manifested itself or to prevent reoccurrence of a disease Example: Cholesterol-lowering medication for those with high cholesterol Periodic health evaluations (e.g., annual physicals) Screening services (e.g., mammograms) Routine pre-natal and well-child care Child and adult immunizations Tobacco cessation programs Obesity weight loss programs
10	Thank You! James G. Knight MD CEO & Founder Consumer Directed Health Care, Inc. www.CDHCInc.com