Introducing our new HDHP/HSA Program

1. Introducing our newHDHP/HSA Program

2. Today’s Presentation • What is an HDHP/HSA program? • Why is the company offering an HDHP/HSA program? • How do HDHP/HSA programs work? • How does my HSA work? • How do I get the most from my HDHP/HSA program? • How do I enroll in my HDHP/HSA program?

3. What is an HDHP/HSA?

4. Your HDHP/HSA Program • A qualified High Deductible Health Plan (HDHP) combined with a Health Savings Account (HSA) • Created as part of the Medicare Modernization Act of 2003 • Part of the fast-growing Consumer-Directed Healthcare (CDH) trend

5. Why is the company offeringan HDHP/HSA program?

6. Rising Cost of Health Insurance HDHPs May Have Lower Premium Costs Sample difference in premium costs in 2013. Estimated average annual premium of $5,006 for HDHP individual coverage and $14,155 for HDHP family coverage. vs. $6,025 for non-HDHP individual coverage and $16,623 for non-HDHP family coverage. Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2013. Chart compiled by Finity Communications.

7. Creating a Sustainable Healthcare Program • Consumer-Directed Healthcare programs may be more sustainable • CDH programs are designed to: • Provide lower premiums • Emphasize the importance of preventive care • Motivate healthy lifestyles • Encourage health consumerism

8. How do HDHP/HSA programs work?

9. HDHP + HSA + Wellness Program

10. How Your HDHP/HSA Works

11. HDHP/HSA Programs Provide Choice • HSA dollars can be used to pay for any IRS-qualified medical expense • Medical expenses must be primarily for the alleviation or prevention of a physical or mental illness • Your HDHP provides details about which medical expenses will count toward your deductible

12. How does my HDHP work?

13. High Deductible Health Plan (HDHP) • A health plan offered by your employer • HDHPs typically have higher deductibles and lower premiums than traditional health insurance plans • You pay for most healthcare costs until the deductible is reached

14. Your High Deductible Health Plan (HDHP) • Minimum annual deductible • Maximum annual out-of-pocket

15. Your High Deductible Health Plan (HDHP) • After the deductible, the HDHP begins to pay for covered benefits • Certain basic preventive care is covered before the deductible is reached • Other features of your HDHP • Finding out more about your HDHP

16. How does my HSA work?

17. Your Health Savings Account (HSA) • You must be enrolled in an HDHP to be eligible for a Health Savings Account • An HSA is a tax-advantaged account that can be used to pay for IRS-qualified medical expenses • No “use it or lose it” provisions • Your money is always yours • You can use funds for current or future medical expenses

18. HSA Benefits • More employee control • Choice of healthcare services • Tax advantages • Money rolls over each year • Portability if you leave the company

19. HSAs Put You in Control • Higher deductible generally means lower premium costs than traditional health insurance plans • You can put money into your HSA to pay for medical expenses before your deductible is reached • Money you don’t use is yours and rolls over each year

20. HSA Federal Tax Advantages State taxes may vary.

21. Your HSA Balance Rolls Over • There are no “use it or lose it” provisions with an HSA • Your HSA dollars roll over year after year

22. HSAs Are Portable • Your HSA goes with you if you change jobs • Money is immediately 100% yours • You can use money in your HSA to pay for COBRA

23. How does the wellness program work?

24. Wellness Resources • Health Risk Assessment • Interactive wellness tools and health trackers • In-depth education and information • Health management resources

25. How do I make the most of my HDHP/HSA program?

26. Making the Most of Your HDHP/HSA Program • Maximize the preventive care benefits • Fund your HSA up to the annual limit • Use your HSA only for IRS-qualified medical expenses • Become a conscious health consumer • Comparison-shop for high-value healthcare services • Make healthy lifestyle choices

27. Contribute the Maximum to Your HSA • If you have HSA funds at the end of the year, you can use them for future medical expenses • You can contribute up to the maximum even if it exceeds your HDHP deductible

28. Become a Health Consumer • Look for the best price on quality healthcare • Compare name-brand and generic prices • Adopt and maintain a healthy lifestyle

29. HDHP/HSA Program Tips • Use your HSA for medical expenses • Non-qualified expenses will be subject to current tax and potential penalties • Keeping records is important • For IRS purposes, keep receipts for at least three years after using HSA funds to pay for a medical expense

30. How do I enroll in myHDHP/HSA program?

31. 4 Simple Steps to Enroll in Your HDHP/HSA • Step One • Begin by enrolling in your HDHP • Step Two • Decide on your HSA contributions • Step Three • Enroll in your HSA • Step Four • Start saving for your future!

32. You can join yourHDHP/HSA program today!