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HBA HOME BUILDING NEWS
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BUILDING YOUR BUSINESS
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FEBRUARY, 2013
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HBApdx.org
By Brian Leong,
Employee Benefits Consultant,
Montgomery and Graham Inc.
With the soaring cost of health
care, many consumers are turn-
ing to the health savings account
(HSA) as a way to combat rising
expenses. This financial tool is
quickly growing in popularity and
has the potential to save you a sig-
nificant amount of money. Here
are 10 reasons to love an HSA:
HSA’s fund health care
needs –
The HSA is first
and foremost designed to fund
health care expenses in conjunc-
tion with a high-deductible health
plan (HDHP) – a requirement to
set up an HSA. The HSA is a sav-
ings account that secures pretax
dollars in a fund for future medi-
cal needs, and helps meet the
deductible of the HDHP, should
something happen that takes
medical expenses beyond what is
affordable.
HSA’s use pretax funds
–
HSA’s may be set up
through employers or through fi-
nancial institutions like banks, in-
surance companies or third party
administrators. Contributions to
HSA’s through employers are set
up as pretax investments. HSA ac-
counts created through financial
institutions are designed so that
consumers can take an “above-
the-line” deduction on personal
taxes. One asset for many is that
taxable income is decreased, so
fewer taxes need to be
paid out.
HSA’s come with significant
premium savings over tradi-
tional insurance plans –
HDHP’s
come with much lower premiums
than a traditional plan. This is es-
pecially apparent to individuals
who pay premiums all year long
but don’t go to the doctor or
utilize medical services very of-
ten. For these people, paying the
premium can feel like throwing
money out the window. Based on
premium savings alone, some HSA
consumers see 20 to 40
percent savings each year.
HSA’s offer expanded cover-
age options for consumers
–
Unlike typical insurance plans
that have a highly negotiated list
of covered medical products or
services, HSA’s allow many ad-
ditional health-related expenses.
Doctors’ visits, hospital expenses
and prescriptions are covered, but
coverage also extends to some
over-the-counter drugs with a pre-
scription, dental and vision servic-
es, and certain “non-traditional”
treatments such as acupuncture
and deep tissue massage.
HSA’s allow negotiat-
ing power to secure dis-
counts onmedical services –
Be-
cause an HSA is a “cash” account, it
empowers consumers with an op-
tion to negotiate pricing on many
medical services, which can lead
to substantial savings on medical
expenses. For example, standard
imaging services can vary widely
in price depending on location
and payment method. An MRI, for
example, can cost anywhere from
$400 to $1800 for the exact same
service, so the price is often nego-
tiable.
HSA’s of fer control
and choices regarding
health care needs –
With these
plans, consumers have unlimited
choices regarding services, service
providers and medical expendi-
tures. With an HSA, one can go to
the doctor of his or her choice.
HSA’s are portable –
If a
consumer switches jobs,
the HSA account follow. And, un-
like traditional insurance plans,
consumers do not lose unused
funds in these accounts at the end
of the year. The consumer “owns”
this account and all benefits that
come from its good management.
HSA’s create financial
incentives for manag-
ing health care expenses
– Oc-
casionally there are unfortunate
cases where a catastrophic event
occurs and emergency medical
services are required that do not
allow time to “shop around,” but
the majority of medical transac-
tions are mundane and predict-
able. Since the HSA is a consum-
er-controlled cash account, HSA
participants are encouraged to
consider if a particular expense
is worth the cost or if a cheaper
alternative (like a generic medi-
cation instead of name brand)
might work equally well.
HSA’s are a powerful
tool for retirement in-
vesting –
Over time, a relatively
healthy person or someone who
is a decent financial manager can
save a good deal of money and
investment earnings in an HSA.
Consumers who are between
the ages of 55 and 65 also have
the opportunity to make addi-
tional “catch-up” contributions
to the fund. After age 65 the ac-
count can continue to be used for
medical expenses with no penal-
ties, but withdrawals for other
purposes are also possible and
often face fewer penalties than
withdrawals from an IRA.
HSA’s create a health-
conscious community
and put market forces to work
that drive down health costs
for everyone –
Because of the
incentive to save and earn mon-
ey, consumers are encouraged to
become educated on health care
and medical services to become
active participants in the control
of their health and wellness. Pro-
viders of medical products and
services are forced into a health-
ier competition for consumers.
Additionally, there is a personal
incentive to make smarter deci-
sions about the use of the health
care system, which decreases the
likelihood of its abuse. Overall, it
becomes a more efficient system
and the costs of medical services
decrease to meet the newmarket
realities.
The HSA is an easily under-
stood tool that offers consumers
a manageable way to take con-
trol of their health investments.
It encourages the consumer to
make healthier lifestyle choices,
better health-care-related finan-
cial decisions, and to invest and
save money over time for future
medical needs. Consumer-driv-
en health care has the power to
change a family’s financial future
while also providing positive
change in America’s health care
system as a whole.
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hand off are critical to your sales
success. If financing is one third of
the buy decision and your sales
team can address this early, then
you will compress the sales cycle
and improve the odds of a buyer
purchasing your home. Finance
training will teach your sales
team how to address this fear of
financing and turn it into a reason
to buy.
Should finance training for my
sales team be technical in na-
ture? Technical knowledge about
financing will rarely help your
sales team sell a home. Techni-
cal knowledge is critical for your
lender so they can correctly ap-
prove the buyer and manage the
closing process. Most delays and
errors with closings arise from
both a lack of technical knowl-
edge by the loan officer as well as
lack of control of the lending pro-
cess. Communicating financing
in a language that your buyers
understand based on their demo-
graphic profile will help you sell
more homes! Why is this? The rea-
son is simple. All human change,
including purchasing a home, is
driven by emotion. People buy
emotionally and then justify logi-
cally. So, if the sales team can dis-
cuss financing in a language that
the buyer understand that drives
emotion, then will significantly
increase the odds of the buyer
purchasing your homes.
A simple example is an entry
level buyer. An entry level buyer
generally doesn’t understand
rates, fees, closing costs or the
closing process. While they have
a high need for a home, their
fear of the financing is equally
as high. Their main issue is cash
to close and what is their new
monthly payment will be com-
pared to their current situation.
The successful sales person un-
derstands this. Rather than blurt-
ing our technical financial jargon,
they communicate in a simple
way that is very powerful. Rather
than saying “we offer a 3.5% 30
year fixed and pre-paid closing
costs,” the successful sales per-
son says “you can own this home
for $6,000 down, no other closing
costs, with a permanent month-
ly payment of $1,300/month.”
Moreover, if they did their home-
work, they are prepared to com-
pare rent versus buy and how the
new home compares to re-sales,
including why a new home is po-
Biz Tips:
Financing changes shouldn’t negatively affect business
tentially better.
Yes, financing has changed in
the past five years, but it doesn’t
need to negatively impact your
sales. Through planning, training,
and integration your preferred
lending partner will become a
valued part of the sales process
and will help improve your sales.
Take control of your financing
and you will increase your sales
and buyer satisfaction!
For more information, contact
Anthony Grasst at HomeStreet
Bank at (206) 264-4115 or anthony.
grasst@homestreet.com.
10 reasons to love a health savings account
9
Continued from page 11
I recently discovered Husky’s
LED work light and was thrilled
to find a replacement for the
yellow halogen lights I’ve been
using for years. Anyone who
has worked on a construction
site has experiences with
the super bright yellow
halogen work lights that
everyone uses. One
of my employees re-
cently brought me
one of Husky’s new
LED work lights and
I hope more people
start using these on
job sites.
The old halo-
gen lights are re-
ally bright, but they also have
downsides. The bulbs are fairly
fragile in that if the light ever
gets dropped or bumped, the
filament breaks easily and the
light goes out. Also, being halo-
gen bulbs, you cannot touch
them when you replace them
or the oils from your fingers will
cause the bulb to fail sooner than
normal. The fixtures are also ex-
tremely hot to the touch.
Husky’s LED work light elimi-
nates all of those issues and will
save you and your customers
money! Since it is an LED light, it
will not break if the light gets
dropped or bumped. It al-
so stays cool to the touch
no matter how long you
have it running. The light
is still extremely bright
and will last for 10 years
if used for three hours
per day. The best part
is that the power us-
age is only 15 watts
as opposed to 500 –
1,500 watts from the
old halogen light fixtures.
Husky is the in-house brand of
the Home Depot. The Husky 800
Lumen portable LED work light is
easy to transport with the com-
fort-grip handle. The LED long-
lasting bulb makes it lowmainte-
nance. It’s ideal for outdoor uses
in tight places due to its size and
weight.
COOL TOOL
NEW AND USEFUL COOL TOOLS & APPS
RECOMMENDED BY MEMBERS OF THE HBA
By Thomas Adams, Classic Electric, LLC
HUSKY 5 FT. 800 LUMEN PORTABLE LED WORK LIGHT
AVAILABLE AT:
Home Depot,
www.homedepot.com
Spread The Word
To register for this event,
contact Jessica Metteer at (503) 684-1880 or jessicam@hbapdx.org
BUILD Retreat
WHAT:
The
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is a collaborative relationship building and
learning retreat for Design, Remodeling, and Building industry professionals in
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bers of the NWSID, NKBA, ORA and PRO.
WHEN:
June 21 - 23 2013
WHERE:
Eagle Crest Resort, Redmond, Oregon
REGISTER EARLY AND SAVE $50!
Registration is just $175, if registered by February 15. Registration includes meals, all
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(* limited availability for bus from Portland, additional charge may apply for
Whitewater Rafting – first come, first served)
PRODUCED
BY