Two solutions for today's high medical insurance costs!

Health Savings Accounts (HSA) are  a lower cost and very effective medical benefit plan. Since many individuals - perhaps 70% or more - are not aware of existing health issues being enrolled in a HSA is an effective step. One feature of  many HSAs, an extensive list of no cost to the person preventive treatment, encourages employees to take responsibility and become aware of their own health.

How does a HSA work? Day-to-day medical treatment such as going to a primary care office when you are not feeling well, or seeing a specialist; or going to a lab for diagnostic work is billed to the insurance company. The person provides the provider their ID card during the visit, and receives a benefit statement a few days later from the insurance company. The person then pays the provider from their special bank based medical expense account using a debit card. The insurance company combines the contracted rate for all provider treatment plus the contracted rate for any prescriptions toward the up front deductible insurance part of a HSA.

Contributions into the special bank account can be from the employer, employee, or both and have annual IRS established limits. They become before tax; normally grow tax free; and are tax free when withdrawn for medical expenses. Each year a high percent (70%)of the population has limited medical expenses. Thus, HSA's are an effective way to build up financial protection to pay not only needed routine treatment but more importantly future medical expenses.

If you have a significant medical situation or many treatments the insurance part of a HSA pays, in some plans, all medical expenses above the up front deductible at 100%. Others have some cost sharing following the deductible. In other words it's a return to the real purpose of insurance - protection in case of major medical treatment situations.

When a medical situation is being discussed with an MD its important to ask about treatment options. HealthcareBlueBook.com may be a useful resource to better understand the cost of treatment options. Just type in the treatment you are considering and your zip code.

Lets meet to review and simplify all this. Call (860) 662-3000 or send a note to

Wellness programs improve employee well being, help with creativity, and help people better handle day to day stress. The result - they are more productive.

First and foremost an effective wellness program, at any level, must have the full commitment and involvement of the chief executive. Considerable education is also needed to help employees understand the value of working on better health. It is however, not a one size fits all effort since steps to get employees involved will vary from one person to another.

Background: Employees are now much more interested in a healthy lifestyle than just a few years ago. 69% ,in a recent survey, want to improve health; 65% want to feel better; and 62% want to live longer. The secret to making improvements in lifestyle is - willpower. Wellness programs can be an effective step to help employees see the value and thus obtain the willpower to improve their health and well being.

Employers gain by implementing a wellness program because the poor health of many employees today impacts absenteeism and productivity. In addition, there are significant reduction in workers compensation and disability claims. Some points:

+ 70% or more of medical treatment expenses are connected to an individuals lifestyle.

+ 2/3 of employees are over weight.

     Note: A study by Harvard University found the ROI was $3.27 in lower medical cost for every $1 invested in wellness and absenteeism costs dropped $2.73.

Employers with over 50 employees will be able to improve employee well being and productivity plus have medical plan rates adjusted for improved health. However, in a couple years, because of health reform, recognition for better health will only be available for employers with 100 or more employees.

Want to discuss these important steps or a Medical or Long Term Care benefit plan? Call (860) 662-3000 or send a note to