SIHO CDHP Testimonials and Experiences

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Testimonials

A SIHO HSA Member says:

“This plan has worked well for our family. We have no ongoing medical conditions…just our annual exams. When we have the occasional flu or need new glasses, we have the ability to use the HSA card or pay out of pocket. That is the bonus to this program. . . when we pay out of pocket and keep the receipt. . .then we can get reimbursed at any time. I have a specific place where we keep all our receipts. . .and keep them separated by ‘HSA’ and ‘unreimbursed.’ The unreimbursed receipts continue to accumulate until I decide to take the money out of the HSA fund. This is a great cash flow tool for our family.”

The Bill C. Brown Agency says:

“We have an obligation to our valued group employer clients to identify and implement programs that can help control rising health care costs. SIHO’s HRA and its outstanding administration of these benefits has been a real asset for them to do so. “Consumer Driven Healthcare options such as the HRA are only as good as the company, network, and administration behind those benefits. We have entrusted SIHO to several of our group clients with outstanding results.”

CDHP Illustrative Cases

We will now look at a few real world examples of how the SIHO CDHP will work for some employer groups and employees:

Employer Group Experience

Lighthouse Software has been in business for eight years and offers a fairly rich health plan to their 40 employees. They have a $250 single deductible with a $15 primary care office visit co-pay. For their renewal they are offering an HRA with a $1,500 single deductible and allocating $750 toward each single employee’s HRA. Lighthouse pays 80% of the premium for all participating employees.

	Old Plan	HRA Plan
Number of Employees: Single / Family	24 / 16	24 / 16
Annual Premium for Group	$216,000	$172,800
Premium Paid by: Employer / Employees	$172,800 / $43,200	$138,240 / $34,560
Premium Savings by: Employer / Employee	N/A	$34,560 / $8,640
Estimated HRA Funding by Employer (25% of Allocation)	N/A	$10,500
Net Savings by Employer	N/A	$24,060
Percentage Savings from Old Plan	N/A	11.1%

SIHO HSA Customers have been reducing their health benefit costs as well. Here are some fully insured small group examples:

A small physician practice averaged a 20% increase in premium in the five years prior to the implementation of an HSA, an 8% average reduction since.
A mid-size manufacturer experienced an average premium increase of 23% for the first two years prior to adopting an HSA plan; they have averaged a 10% reduction over the two years since.
A large automotive dealer averaged a 14% premium increase prior to switching to an HSA design; they have had 0% premium change in the two subsequent years.
A large glass company averaged a 10% annual increase in premium for three years prior to switching to an HSA plan. Over the 2 years since they have averaged a 16% reduction in premium.

Employee Experiences

Marilyn Kearns

Marilyn is a 27 year old and a bit of a health nut. She enjoys many outdoor activities including hiking and biking. She is diligent about receiving all recommended preventive health benefits.

Annual Deductible:	$1,500
HRA Allocation:	$750

Year One Experience:
Services Received	Marilyn's Costs
Annual physical	Coverd in Full
Sick visit to primary care physician	$25 co-pay
Payment Summary
Paid by Marilyn	$25
Paid by HRA	$0
Paid by Health Plan	$320

HRA Balance Rollover	$750

Year Two Experience:
In year two Marilyn has a mishap on her bicycle and needs to seek treatment from the ER.
HRA Account:
Rollover from Year 1	$750
Year 2 HRA Allocation	$750
Total HRA Balance	$1,500
Services received	Marilyn's Costs
Annual Physical	Covered in Full
ER Visit Charges	$950
Marilyn's Share ($150 ER deductible)	$310
plus 20% of remainder
Prescription Drug Co-pay	$10
Payment Summary:
Paid by Marylin	$10
Paid by HRA	$310
Paid by Health Plan	$930
HRA Balance Rollover	$1,190

Even with a visit to the emergency room, after the second year Marilyn has $1,190 available in her HRA to meet her annual $1,500 deductible. She has also received all recommended preventive care at no cost to her. In addition, both Marilyn and her employer have saved on premiums for the SIHO HRA.

The Burris family will start year three with $5,000 in their HRA, enought to cover their entire deductible. They have received all preventive visits free of charge and saved sifnificantly on their payroll deduction for health insurance. In addition, they and their employer have paid less in premium during the two years with the SIHO HRA.

The Burris Family

David and Elizabeth Burris have two young children and the family’s health is pretty typical. David takes medication on a regular basis to help lower his cholesterol and their son Chad suffers from Asthma.

Annual Deductible: $5,000
HRA Allocation: $2,500

Unfortunately, Elizabeth has an ailment in Year One that requires outpatient surgery.

Year One Experience:
Services Received	Burries's Costs
Annual physicals, immunizations	Covered in Full
6 sick visits to primary care physician	$150 co-pays
Prescription Drugs	$960 co-pays
Hospital and Surgery Charges	$6.800
Burris Family Share (deductible plus 20% of $1,800 remainder)	$5,360
Payment Summary
Paid by Burris Family	$3,970
Paid by HRA	$2,500
Paid by Health Plan	$4,290
HRA Balance Rollover	$0

The Burris Family has a healthier year two with no major expenses incurred.

Year Two Experience:
HRA Account:
Rollover from Year One	$0
Year Two HRA Allocation	$2,500
Total HRA Balance	$2,500
Services received	Burris's Costs
Annual Physicals	Covered in Full
Three sick visits to primary care	$90 co-pays
Prescription Drug Co-pays	$900
Payment Summary:
Paid by Burris Family	$990
Paid by HRA	$0
Paid by Health Plan	$3,340
HRA Balance Rollover	$2,500