John M. Bragg, FSA
Geoffery Crofts, FSA
Faye Albert, FSA                          

Harold I. Cohen, FSA

   Bragg Associates Actuaries
   

      

 

 

Accumulations and Annual Benefits Under Health Savings Accounts

Let us show you:

How the HSA product works.

About pricing and wording of high deductible major medical companion product.

How to employ long term care supplements.

The value of Bragg Health Expectancy as a sales/administrative tool.

Annual Contribution        $ 2,600
Interest Assumed                    6%

 

Age 45

Age 55

  Male Nonsmoker Female Nonsmoker Male Nonsmoker Female Nonsmoker
Scenario I:
Contributions to Age 65
       

Will Be Healthy to Age

77 77 79 79
Assisted Living Years 5 5 5 5
Skilled Nursing Years 3 3 2 5
Accumulation at 65 $95,643 $95,643 $34,270 $34,720
Annual Benefits:        
Age 65 to end of healthy period $4,074 $3,276 $1,716 $1,202
During Assisted Living Period $10,185 $8,190 $4,291 $3,006
During Skilled Nursing Period $40,741 $32,758 $17,164 $12,024
         
Scenario II:
Contributions to End of Healthy Period
       
Accumulation End of Healthy Period $236,313 $236,313 $132,121 $132,121
Annual Benefits:        
Age 65 to End of Healthy Period --- --- --- ---
During Assisted Living Period $19,372 $14,068 $12,650 $7,865
During Skilled Nursing Period $77,489 $56,271 $54,600 $31,460

Notes: Healthy, assisted living, and skilled nursing periods are from Bragg Associates' Health Expectancy for individuals with no current medical impairments.
Contributions are from pre-tax dollars; interest earnings are tax-deferred.
Benefits are available tax-free for deductibles, co-pays, prescriptions, over-the-counter medications, and Long Term Care Insurance.
A basic Health Care insurance plan must be maintained with deductible of at least $2,600 and out-of-pocket maximum of $5,000 or less.
These illustrations and notes are based on our current understanding and are not guaranteed.
3/16/2004

 

David G. W. Bragg
Copyright 2006 John M. Bragg and Associates, Inc. All rights reserved.                                                   
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Revised: 06/15/10.