isn’t it time someone created a healthier health plan? we...
TRANSCRIPT
Isn’t it time someone createda healthier health plan?
Lumenos® Health Savings Account
We thought so. So we did.
The person most responsible for your health? You. The plan most supportive of your health? Lumenos HSA, a consumer-driven health plan from Anthem Blue Cross and Blue Shield.
Think of “health plan” and what comes to mind? Most likely, coverage that just helps pay the cost of medical care when you’re sick or injured.
We’re out to change your thinking.
With our Lumenos Health Savings Account (HSA) Plan—an innovative consumer-driven health plan for individuals and families from Anthem Blue Cross and Blue Shield—protection against high medical expenses is only part of the story.
What makes the Lumenos HSA Plan different? Plan features specially designed to improve and maintain your health and give you enhanced control over your health care dollars. Take a look:• Preventive care covered.Whenyouuseournetworkproviders,nationallyrecommendedpreventive
careservicesarepaidforbyAnthem,atzerocosttoyou.
• A Health Savings Account that empowers you.You’llhavetheabilitytobettermanageandcontrolyourhealthcaredollars.
• Exclusive health tools and personalized services.You’llhaveaccesstoawealthofwaystoimproveandmaintainyourhealth—allatnocharge,including:
— AnonlineHealthAssessmentdesignedtohelpyoumeasureyouroverallhealth.
— APersonalHealthCoachProgram,SmokingCessationProgram,andWeightManagementProgram.
— 24-HourNurseAdviceLinewhenyouneedaquickanswertoaroutinehealthquestionoradviceonamedicalissue.
— Anonlinehealthsitewithtoolsandinformation,includingnetworkproviderlistings,hospitalqualityratings,prescriptiondrugcosts,wellnessarticles,andmuchmore.
• Built-in value through Anthem discounts.Youchooseyourowndoctorandyouneverneedreferrals—butwhenyouuseournetworkproviders,youcansavemoneybecauseyou’llreceiveAnthem’snegotiateddiscountsonservicesandprescriptions.
• Flexibility.ChoicesandoptionsareavailabletohelptailoryourLumenosHSAPlantoyourneedsandbudget—andyoucontrolaportionofyourhealthcaredollarsforevenmoreflexibility.
• Improve your health and your financial health.YourHealthSavingsAccountqualifiesfortaxadvantagesdesignedtohelpreduceyourout-of-pockethealthexpenses.
Nowwhenyouthinkof“healthplan,”thinkLumenosHSA.Becauseahealthplanyoucanfeelgoodaboutisonethathelpsyoufeelgood.
Preventivecaretomaintainyourhealth.
• 100%coveragefornationallyrecommendedpreventivecareserviceswithnodeductionfromyourHealthSavingsAccountandnoout-of-pocketcostswhenyouusenetworkproviders.
Health Savings Account to pay for medical care and prescriptions.
• Contributionsaretax-deductibleandwithdrawalsaretax-freewhenusedtopayforeligiblemedicalexpenses.
• Theaccountbalanceearnsinterestandyouhavetheopportunitytoinvestforthefuture.
• Unuseddollarsrolloverfromyeartoyearsoyouraccountcankeepgrowingtohelpmeetfuturehealthcarecosts.
• ThemoneyyouspendfromyourHealthSavingsAccountoncoveredexpensesappliestoyour
plandeductible,whichmustbesatisfiedbeforetraditionalcoveragebegins.
Then, use Traditional Health Coverage, if needed.
• IfthereisnomoneyinyourHealthSavingsAccount,youmustpayanyremainingdeductibleout-of-pocket.Thispaymentiscalleda“bridge”amountbecauseitbridgestheHSAandtraditionalhealthcoveragecomponentsoftheplan.
• Then,theplanpaysthemajorityofthecostforadditionalcoveredservices.Youareresponsibleforanyapplicablecoinsuranceamounts.
• Oncetheout-of-pocketmaximumisreached(whichincludestheplandeductibleandanycoinsurancepayments),theplanpays100%ofcoveredexpenses.
Preventive Care
Health Savings Account
Out of Pocket “Bridge” to Traditional Health Coverage
Traditional Health Coverage
How the Lumenos HSA Plan works
A closer look at our Lumenos HSA PlanOnceyou’reapprovedforhealthbenefitscoverageundertheLumenosHSAPlan,aseparateHealthSavingsAccountwillbesetupforyouwithMellonTrustofNewEngland(oryoucanchooseanotherfinancialinstitution).
Youcanmaketax-deductiblecontributions(withincertainIRSlimits)toyourHealthSavingsAccount,andwithdrawthemoneytax-freetopayforeligiblemedicalexpenses.
Thetaxadvantageshelptoloweryourout-of-pocketcosts,andthemoneyyouusefromtheaccountappliestoyour“Bridge”responsibility(theamountyoumustpayout-of-pocketbeforetraditionalhealthcoveragekicksin).
Thereareotheradvantages:Themoneyintheaccountisyourstokeep—it’sneverforfeited,evenifyouleavetheplan.Ifyoudon’tspendallthemoneyinagivenyear,theamountrollsover,soyouraccountkeepsgrowing..
Health Savings Accounts: 3-Way Tax SavingsIfyouopenaHealthSavingsAccountwithyourLumenosHSAplan,youcansaveontaxesinthreeways:
• First,thecontributionsyoumaketoyouraccountaretax-deductible(withincertainIRSlimits),whichcanreduceyouroveralltaxes.
• Second,themoneyinyouraccountcanearntax-freeinterestandyouevenhavetheopportunitytoinvestforthefuture.
• Third,withdrawalstopayforeligiblemedicalexpensesaretax-free.
YoucanalsousethemoneyinyourHealthSavingsAccounttopayformedicalexpensesthataren’tcoveredbythehealthplan,likecontactlenses,over-the-countermedications,ororthodonticbraces(however,theseamountswon’tapplytoyourdeductible).
Still more Lumenos HIA plan benefits
Save on prescription drugs—including mail orderPrescriptionmedications—eventhroughmailorder—arecoveredwhenthetraditionalhealthplancoveragekicksin(lessanyapplicablecoinsurancepayments).Butthatdoesn’tmeanyouhavetowaittosavemoney:
• Thankstoourbuyingpower,Anthemisabletonegotiatesignificantdiscountsonalltypesofprescriptionmedicines.JustshowyourAnthemIDcardatpharmaciesinournetwork—that’sover95%ofpharmaciesnationwide.YourcardletsthemknowyourprescriptionshouldreceivetheAnthemdiscountrate.
• ThecostoftheprescriptioncanbepaidfirstfromyourHealthIncentiveAccount,ifyouhavemoneyintheaccount.Ifyoudon’thavemoneyinyouraccount,youstillbenefitfromAnthem’sdiscountrate.
• Tofurtherloweryourcost,visitanthem.com(it’seasytoregisteronceyou’reapprovedintheplan)tolearnaboutgenericsorotherlow-costalternativesthatcouldsaveyoumoney.
• Youcanalsopotentiallysaveonprescriptionsbyorderinga60-or90-daysupplythroughmailorder.Onceyou’reapprovedintheplan,youcandownloadamailorderformfromwww.anthem.com.
Your Health Savings Account with Mellon BankAnthemmakesiteasytogetyouraccountstarted.We’vepartneredwithMellonTrustofNewEnglandtomakeestablishingandmanagingyourHealthSavingsAccountsimple—we’llevensetuptheaccountforyouonceyou’reapprovedforcoverage.Or,ifyouwouldratheruseanotherfinancialinstitution,that’sfinetoo.
TheLumenosHSAPlanincludesservicingforyourHealthSavingsAccountthroughMellonTrustofNewEngland.WhileyouarenotrequiredtouseMellonBankforyourHealthSavingsAccount,thefeaturesandservicesprovidedbyMellonweredesignedtomeetallofyourneeds.
Key FeaturesTheMellonHealthSavingsAccountprovidesmanyusefultoolsandservices:
• asinglecustomerservicecontactforthehealthplanandtheHealthSavingsAccount
• asingleonlinehealthsitetoaccessyourplanbenefitinformationandaccountdetails
• competitiveinterestratesandinvestmentoptionsforthefundsinyourHealthSavingsAccount
Interest and InvestmentsYouwillearninterestonyourHealthSavingsAccountfundsandwillalsohavetheopportunitytoinvestyourfundsonceyouraccountbalancereaches$3000.InvestmentoptionsincludesevenmutualfundsfromtheDreyfusfamilyofmutualfunds.Onceyouarereadytoinvest,youcanrequestaprospectusforeachfundformoredetails.
Debit Cards and CheckbooksUseyourMasterCard®debitcardoryourHealthSavingsAccountcheckbooktopayyourhealthcareproviderdirectlyforeligiblemedicalexpenses,ortoaccesscashfromyouraccount.
Deposits to your accountContributetoyourHealthSavingsAccountbysendingacheckanddepositsliptotheaddressprintedonyourcheckbook.YoucanalsosetupanelectronicfundstransferbetweenyourbankandMellonforregularaccountcontributions.
Account Activity Statements Eachmonth,youwillreceiveamonthlystatementfromMellonthatshowsallofyouraccountactivity.Youwillalsoreceivea1099formanda5498formneartaxtimesoyoucanfileyourtaxes.
Welcome KitOnceyou’reapprovedfortheLumenosHSAPlan,yourHealthSavingsAccountwithMellonwillautomaticallybeestablished—aseparateapplicationforyouraccountisnotrequired(unlessyouchooseadifferentfinancialinstitution).Soonafteryou’reapprovedfortheplan,youwillreceiveaWelcomeKitfromMellonwithallofthebankingdocumentationandinstructionsforusingyourHealthSavingsAccount.
Mellon Health Savings Account Fee and Rate ScheduleThefollowingadministrativeandbankingfeesapplytotheHealthSavingsAccountwithMellonTrust:
Administrative fees •Onetimeaccountset-upfee.......................................................................................$15
Banking fees • Monthlyaccountfee................................................................................................$2.95
• Debitcardtransactions..................................................................................... nocharge
• Checkwriting...................................................................................................... nocharge
• ATMtransactions.............................................................................................................$1
• Cardreplacementfee.....................................................................................................$5
• Checkreorder................................................................................................................$10
• Non-sufficientfunds.................................................................................................... $25
• Stopcheckservice...................................................................................................... $25
• Duplicatecheck..............................................................................................................$5
YouwillreceiveaHealthSavingsAccountDepositAgreementandDisclosuresandFeeSheetinyourMellonWelcomeKitafteryou’reapprovedfortheLumenosHSAPlan.Pleaserefertothosedocumentsforthecompletetermsandconditionsrelatedtoyouraccount.
To open a Health Savings Account, you must meet certain IRS eligibility requirements:• YoumustbecoveredbyanHSA-compatibleplan(suchastheLumenos®HSAplan).
• YoucannotbecoveredbyanyothermedicalplanthatisnotanHSA-compatiblehealthplan.
• YoumustnotbeenrolledinMedicare.
• Youmustnotbeclaimedasadependentonanotherindividual’staxreturn.
• YoumustbeaU.S.resident,andnotaresidentofPuertoRicoorAmericanSamoa.
• Ifyouareaveteran,youmaynothavereceivedveteran’sbenefitswithinthelastthreemonths.
• Youmaynotbeactivemilitary.
Deducible CoinsurancePreventiveCare
CoinsuranceOutofPocketMaximum
In-networkOut-of-
networkIn-network
Out-of-network
In-network,beforedeductible
In-networkOut-of-
network
PlansforIndividuals
LumenosHSA1500/70% $1,500 $3,000 70% 50% 100% $5,000 $10,000
LumenosHSA1500/100% $1,500 $3,000 100% 70% 100% $1,500 $4,500
LumenosHSA2500/80% $2,500 $5,000 80% 60% 100% $5,000 $10,000
LumenosHSA2500/100% $2,500 $5,000 100% 70% 100% $2,500 $7,500
LumenosHSA3000/80% $3,000 $6,000 80% 60% 100% $5,000 $10,000
LumenosHSA3000/100% $3,000 $6,000 100% 70% 100% $3,000 $9,000
LumenosHSA5000/100% $5,000 $10,000 100% 70% 100% $5,000 $15,000
PlansforFamilies
LumenosHSA3000/70% $3,000 $6,000 70% 50% 100% $10,000 $20,000
LumenosHSA3000/100% $3,000 $6,000 100% 70% 100% $3,000 $9,000
LumenosHSA5000/80% $5,000 $10,000 80% 60% 100% $10,000 $20,000
LumenosHSA5000/100% $5,000 $10,000 100% 70% 100% $5,000 $15,000
LumenosHSA6000/80% $6,000 $12,000 80% 60% 100% $10,000 $20,000
LumenosHSA6000/100% $6,000 $12,000 100% 70% 100% $6,000 $18,000
LumenosHSA10000/100% $10,000 $20,000 100% 70% 100% $10,000 $30,000
Health Savings Account
•For2007*,youcanmaketax-deductiblecontributionstoyouraccountuptothefollowinglimits:
• Individual$2,850
•Family$5,650
Other Details
•Theplan’sannualdeductiblemustbesatisfiedbeforetradi-tionalhealthcoveragebegins.ThemoneyyoupayfromyourHealthSavingsAccountforcoveredmedicalexpensesappliestoyourdeductible.
• IfthereisnomoneyinyourHealthSavingsAccount,orifyouchoosenottousetheaccounttopayforcoveredservices,youwillpayanyremainingdeductibleout-of-pocketasa“Bridge”tothetraditionalhealthcoverage.
•Whentraditionalhealthcoveragebegins,theplanpaysthemajorityofcoveredexpenses,andyoupayalimitedcoinsur-anceamount.
•Theplanpays100%ofcoveredexpensesafteryoureachtheannualout-of-pocketmaximum,includingthedeductibleandcoinsurancepayments.
*ThecontributionlimitssetbytheU.S.TreasuryandtheIRSmaybeincreasedforinflationannually.Consumersoverage50maymakeadditional“catch-up”contribu-tors.Consultyourtaxadvisorfordetails.
Lumenos HSA plan options
Year 1 Year 2
HSA: $1,500contribution $1,500 SABalance: $0fromYear1,plus $1,500ContributionforYear2
$1,500
TotalExpenses:Preventivecareservices:$250ArthroscopicKneeSurgery:$4,200Prescriptiondrugs:$20
$4,650 TotalExpenses:Preventivecareservices:$200Officevisits:$100Prescriptiondrugs:$200
$500
Paidbypreventivecarebenefit–nodeductionfromHSA $250 Paidbypreventivecarebenefit–nodeductionfromHSA $200
Expensebalanceremaining $4,400 AmountpaidfromHSA(Steve’schoice) $300
AmountpaidfromHSA(Steve’schoice) $1,500
StevepaysremainderofBridgeamountneededtomeetannualdeductible($2,000-$1,500=$500)
$500
Expensebalanceremaining $2,400
AmountpaidbyTraditionalHealthCoverage(90%x$2,400=$2,160)
$2,160
StevepayscoinsuranceunderTraditionalHealthCoverage(10%x$2,400=$240)
$240
TotalAmountHSAandPlanPays $3,910
TotalAmountSteveAdamsPays $740
HSARollovertoYear2 $0 HSARollovertoYear3 $1,200
SinceStevedidnotspendallofhisHSAdollars,hedidnotneedtopayanyadditionalamountsout-of-pocketthisyear.
Steve Adams
Steveisahealthy35-year-oldwholovesskiingandtheoutdoors.Beinghealthyisimportanttohim,butheneverreallythinksaboutit.Unfortunately,hetookanastyspillontheslopesandhadtohavekneesurgerylaterintheyear.Sincehisexpenseswerehigherthanusual,Stevehadsomeout-of-pocketexpensesinhisfirstyear.HissecondyearwasmoretypicalandhewasabletobegintobuildsavingsinhisHSAforthefuture.
ServicesusedbySteve:
• OnlineHealthAssessment
• Onlinephysiciandirectoryandprofiles
• 24-HourNurseAdviceLine
ServicestohelpStevestayhealthy:
• Onlinefitnessprogram
Steve Adams’ HSA Plan
Stevecontributes$1,500tohisHSAeachyear.Hisplan’sdeductibleis$2,000.IfhechoosestousehisHSAtopayforcoveredservices,thiswillreducetheout-of-pocketamount(theBridge)neededtomeethisdeductiblebeforetheTraditionalHealthCover-agebegins.
How could the Lumenos HSA plan work for you?Let’slookatoneexampleofhowtheLumenosHSAplancanhelpindividualsandtheirfamilies.Youcanviewmoreexamplesatanthem.com.
Thisisanexample.Youractualexperiencewillvary.Allexpensesassumetheuseofin-networkproviders.
Need another reason to choose the Lumenos HSA Plan?Howabouthoweasyitistoapply.
OurLumenosHSAPlanoffersawealthofbenefits,including:
• 100%preventivecarecoverage
• AHealthSavingsAccounttobettermanageandcontrolyourhealthcaredollars
• Traditionalhealthcoveragetoprotectagainsthighmedicalexpenses
• Taxadvantagesonyourhealthcaresavings
• Exclusiveaccesstoonlinetools,information,andpersonalizedservicestohelpimproveandmaintainyourhealth
Toallthesebenefits,addonemore:it’seasytogetstarted.
Whetheryou’relookingforindividualorfamilycoverage,theapplicationcanbefilledoutandsubmittedeasilyandsecurelyonlineand,inmostcases,theapprovalprocesstakesonlyadayortwo.
Talktoyouragentorfinancialadvisortodayformoreinforma-tionandcompletedetails.Ahealthierfutureisjustahead.
ThecontributionlimitssetbytheU.S.TreasuryandtheIRSmaybeincreasedforinflationannually.Theselimitsincludecontributionsfromanysource.
AnthemBlueCrossandBlueShieldisthetradenameofRockyMountainHospitalandMedicalService,Inc.LifeanddisabilityproductsareunderwrittenbyAnthemLifeInsuranceCompany.IndependentlicenseesoftheBlueCrossandBlueShieldAssociation.®Anthemisaregisteredtrademark.TheBlueCrossandBlueShieldnamesandsymbolsareregisteredmarksoftheBlueCrossandBlueShieldAssociation.®LUMENOSisaregisteredtrademark.
07-00010(Rev.01/07)