Two solutions for today's high medical insurance costs!

Health Savings Accounts (HSA) are a very effective approach to providing employee medical benefits. One feature of  HSAs, which is a step toward encouraging employees to take responsibility and become more aware of their own health, is an extensive list of, no cost to the person, preventive treatments. Since perhaps 70% or more individuals are not aware of existing health issues this is an important step.

How does a HSA work? A person shows their ID card when they receive medical treatment such as at the MD's office when not feeling well, or seeing a specialist; or to a lab for diagnostic work.  The provider bills the insurance company and you then receive a benefit statement from the insurance company a few days later, which shows the billed amount and the plan's contracted rate for this treatment. They then pay the provider the contracted rate using a debit card connected to their special bank based medical expense account. The insurance company combines covered medical treatment and prescriptions toward the up front deductible insurance part of a HSA.

Contributions into the special bank account can be made by the employer, employee, or both up to the annual IRS limit. In 2011 it's $3,050 for single coverage and $6,150 for two person or family coverage. Contributions become before tax; normally grow tax free; and are tax free when withdrawn for medical expenses.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 only pay needed routine treatment and more importantly to build up, in this special account, financial protection for 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%. Other plans 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.The premium for this major cost situation coverage is lower than a co-pay based plan since the cost for various routine expenses are not included.

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 discuss and simplify how this can help your organization and the employees. Call (860) 451-9793 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 to have an effective wellness program any effort must have the full commitment plus personal involvement of the organizations chief executive. Considerable effort is required to help employees understand the value they can achieve. When a person comes to understand they can live a better life they will work on steps such as eating better. The steps to get employees involved and engaged in a wellness program 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 taking steps toward better health and thus making improvements in lifestyle is to increase an individuals understanding of the improved way of life they can achieve. Willpower is also important.

Working to increase understanding that they can live better can be an effective step in helping employees gain the willpower needed to change. A big part of this is helping employees understand "90% or more of weight loss is explained by changes in our diet, and not by whether or not we exercise." The focus also needs to be on the point - looking for low fat is not the answer since the problem is to much sugar!

Employers also gain by implementing a wellness program because the poor health of many employees impacts absenteeism and productivity. In addition, a significant reduction in workers compensation and disability claims is possible. 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 can not only improve employee well being and productivity but also have medical plan rates adjusted for improved health. However, because of health reform, recognition for better health will, in a few years, 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) 451-9793 or send a note to