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.


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