CONSUMER DRIVEN HEALTH PLANS

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" colspan=2 height=90 BGCOLOR="#006699" TEXT="#080000" bgproperties="fixed" background="039285a1erlcgo.png"> <div> <FONT SIZE="5" COLOR="#FFCC66" FACE="Arial" ><B>LIFE, DISABILITY, MEDICAL, MEDIGAP, DENTAL, LTCI and ANNUITIES </B></FONT><B>     |     </B><A HREF="index.htm" TARGET="_top" TITLE="LIFE, DISABILITY, MEDICAL, MEDIGAP, DENT"><U><B>home</B></U></A></div> <div>                                                   </div> <div> </div> </td> </tr><tr> <td valign="top" width=210 BGCOLOR="#FFCC66" TEXT="#080000" background="038d2c00dkelyh.png"> <div> <B>W. FORREST VEAL, CLU</B></div> <div> <B>P. O. BOX 700222</B></div> <div> <B>DALLAS, TX 75370</B></div> <div> <B>972 250 6516</B></div> <div> <B>1 888 845 8325</B></div> <div> <B>Fax 1 775 542 0808</B></div> <div> <B>E-mail - vealbs@juno.com</B></div> <bR> <div> <A HREF="id12.htm" TARGET="_top" TITLE="INDIVIDUAL MEDICAL INSURANCE and Health "><U><B>Individual HDHP Quotes</B></U></A><B> </B></div> <div> <B>for a Health Savings Account</B></div> <div> <A HREF="id12.htm" TARGET="_top" TITLE="INDIVIDUAL MEDICAL INSURANCE and Health "><U><B> </B></U></A><B>                                                                                                                </B></div> </td> <td valign="top" height=390 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <I>CONSUMER DRIVEN HEALTH PLANS</I></div> <div> For a number of years, employers have had flexible benefit plans available which the IRS divides into several categories: Premium Only Plans (POP), Flexible Spending Account Plans (FSA), and Transportation Benefit Programs. Now, that the Consumer-Driven Health Plan design  has arrived and is being credited as a way to help control the costs of providing health benefits to employees, we have seen the introduction of Health Reimbursement Arrangements (HRAs) in 2002 and Health Spending Accounts (HSAs) in 2004. These Government provided regulations are designed to give individuals and employees more choices and control over the money being used to purchase health care. The challenge for employers and employees is to understand these programs and select the options that are best for them, if the ultimate goal of CDHPs is to be attained.  That is, to make employees value-conscious shoppers in the health care marketplace so that they can spend first dollar routine and preventative care health dollars to their advantage. These government regulations are vehicles designed to help cut employer's taxes when providing employee benefits and to maximize benefits for the employee by being able to purchase benefits with pretax dollars. Following are links to information explaining Section 125 and Section 132 Plans, HRAs and HSAs.</div> <bR> <div> <B>SECTION 125 AND SECTION 132 PLANS</B></div> <bR> <div> Section 125, also called a Cafeteria Plan includes the following: Premium Only Plan, Flexible Spending Account, Adult/Child Dependent Care and Adoption assistants. Section 132 includes the Transportation Benefit Plan. A good source of infomation about these plans can be found at the following web site:<A HREF="http://www.125plan.com" TARGET="_top" TITLE="http://www.125plan.com"><U><B> www.125plan.com</B></U></A>. At the site, click on "Employer" to go to an explanation of these plans. Note there is also a matrix comparison of these plans provided by a link in the third paragraph. This site is provided by MHM Resources, Inc. to promote their Administrative Services Programs.</div> <bR> <div> <B>HEALTH REIMBURSEMENT ARRANGEMENTS</B></div> <bR> <div> In June, 2002, the IRS authorized HRAs and published guidance regarding their tax treatment. These arrangements "not accounts" are solely funded with employer dollars. HRAs allow the employee to use the employer's money solely for the medical expenses authorized in the HRA Plan Document. The web site at <A HREF="http://www.hrahelper.com" TARGET="_top" TITLE="http://www.hrahelper.com"><U><B>www.hrahelper.com</B></U></A> will provide a lot of useful material about understanding HRAs and how they work, however, there are some areas at the web site that can only be accessed by members of the Employers Council on Flexible Compensation (ECFC). </div> <bR> <div> <B>HEALTH SAVINGS ACCOUNTS </B></div> <bR> <div> Starting January 1, 2004, an employee or individual insured by a qualifying high deductible health plan (HDHP) may establish a Health Savings Account (HSA) within specific guidelines. Helpful information to help you understand HSAs and how they work, is available at <A HREF="http://www.hsahelper.com" TARGET="_top" TITLE="http://www.hsahelper.com"><U><B>www.hsahelper.com</B></U></A>. The web site is provided by the Employers Council on Flexible Compensation (ECFC) and some areas can only be accessed by their members. Another good web site for HSA information is: <A HREF="http://www.ustreas.gov/offices/public-affairs/hsa/" TARGET="_top" TITLE="http://www.ustreas.gov/offices/public-af"><U><B>www.ustreas.gov/offices/public-affairs/hsa/</B></U></A></div> <bR> <div> <B>Note: </B>Call Forrest Veal, CLU to arrange a no obligations meeting, if you would like more information on the use and coordination of these CDHP programs plus help in understanding how to best use the programs in conjunction with your employee benefit plans. You may also request a High Deductible Health Plan quote by going back to the Home Page and click on Group Quote Request Form in the Form Section. Thank you for visiting our web site.    </div> <bR> <div> <B>To return to the table of subjects, click on "home" in the above blue border.</B></div> <bR> <bR> </td> </tr></table></body>