Tailoring HSA Communication forTailoring HSA Communication for Every Life Stage & Situation

Hosted by:

UMB Healthcare Services

June 7, 2012

Your speaker

Kevin RobertsonVice President – National Sales Director, UMB Healthcare ServicesUMB Healthcare Services

The benefits of good communication

Note: Statistics from MetLife’s 9th Annual Employee Benefits Trends Study 2010

Best practices in benefits communications

Three Steps to Success

Know your audience

Meet Steve … the average UMB account holder

• 46 years old M i d i h hild• Married with children

• Had his HSA for two years• Balance of $1 800Balance of $1,800• Uses his HSA like a checking

account—spending about whathe saves each yearhe saves each year.

• Employer contributions—about $500 a year

• Not maxing out contributions• Not investing his balance

(but he’s eligible to)(but he s eligible to)

Angie

“I’m healthy and ll tigenerally use preventive

care and maybe a doctor visit or two”visit or two

Angie

Earning the tax savings nownow

Understanding her future needsfuture needs

Time-value of saving

Richard

“I have diabetes and need a lot of

medical care”

Richard

Tax savings on expenses Ability to adapt Ability to adapt Alternatives and advocacy

Dennis

“I just changed jobs”I just changed jobs

Dennis

Portability T iti Transition Mechanics (how

d thi k?)does this work?)

Sasha

“I’ tti l“I’m getting close to retirement”

Sasha

Catch-up contributions Catch-up contributions Using HSA funds in

retirement How Medicare will

impact her

Understand behavior

Understand behavior

Remaining Balance to Contributions—All Accounts

100% (= or +)6520

218%

83%

100% (= or +)23%

34

207%

8%80%–100%

60%–80%34

12% 40%–60%

20%–40%

8330%

4917%

0%–20%

0% (= or +)

Understand barriers

Inertia

Don’t have time

Saving in other ways Saving in other ways

Can’t afford to contribute more

HSAsavings

Didn’t know that

Your HSA is different

Flexible Spending Account Health Savings Account

For expenses now For expenses now and in the future

Some tax breaks Bigger tax breaks

Reimburse yourself during the plan year + 3 mos beyond

Reimburse yourself any time

“Use it or lose it” Rolls over from year to year

Save early

Don’t underestimate health care expenses in retirement.

The earlier you start, the more time for your savings to grow.

The power of compound interest

Here’s an example of how compounding works: If you saved $3,000 per year, compounded at a 5% rate ofcompounded at a 5% rate of return, after 30 years, you could potentially have $213,743 tax-free dollars to use when you need it. For example to pay for qualifiedFor example, to pay for qualified medical expenses, Medicare premiums, or to supplement your retirement income.

Note: This example is a hypothetical illustration of compounding returns over time and is not intended to represent any particular investment or savings vehicle. The rates of return are constant nominal rates, compounded monthly. Actual investments will fluctuate in value. Contributions are assumed to be made at the beginning of the month. It does not take into consideration taxes or other applicable deductions, which will lower returns.

Save more

Think before you pay.

Increase how much you save—small amounts make a big difference.

Friends and family can contribute on your behalf.

Tax savings

fall tax free

contributions interest withdrawals

Value in retirement

• Medical, dental and vision care expenses• Medicare premiums• Long-term care premiums

A d• And more…

Set objectives & metrics

UMB resources

hsa.umb.com

Q&A

Type in your question at anyType in your question at any time for the presenters

Contact UMB Healthcare Services:

hsa.umb.com

888-677-1115

hsasales@umb comhsasales@umb.com