The Sky is Falling 1.2

Not wanting to steal any of the Professor’s thunder, but just wanted to get something off my chest.

OK, so maybe you don’t care. That’s OK. This is short. Deal with it.

Prospective client has an old fashioned plan with a major carrier. The plan is very rich in benefits with $20 doc copays; $25 Rx copays and a (GASP) $500 deductible.

It also carries a hefty price tag.

Over $900 per month.

The plan they have now will not be renewed by their carrier in the summer. They will have the option then of moving to a higher deductible, lower benefits and a higher price; or they can leave this carrier and go somewhere else.

Yes, I did say a higher price.

Based on other renewals with this carrier, for this product, my guesstimate is about 30% more in premium.

Did I mention the higher premium is for less benefit?

For the SAME $900 per month they can have an HDHP PLUS a FULLY FUNDED HSA.

That means NO out of pocket for anything.

No out of pocket for doc visits.

No out of pocket for meds.

No out of pocket for a major claim. Unless the claim exceeds $5,000,000 . . .

So what did they say to my proposal?

If I can’t show them how they can save money over their current plan, they would rather stay where they are until August when the plan renews.

These people are not stupid. I drew them a picture . . . literally. They just think they are better off paying $20 to go to the doc, than paying nothing (after the HSA reimbursement).

OK, maybe they are stupid.

Someone just go ahead and shoot me.