South Windsor Board of Education High Deductible Health Plan (HDHP) Health Savings Account (HSA) February / March 2016 TEACHERS $2,000/$4,000 Rx Copays

Agenda Overview of High Deductible Health Plan (HDHP) & Health Savings Account (HSA) HDHP – Basic Structure HSA – Basic Structure Anthem’s HSA Plan Your HSA Plan Details at a Glance Using Your HDHP/HSA Plan 1

High Deductible Health Plan & Health Savings Account – An Overview An “HSA Plan” has two parts: –High Deductible Health Plan – the insurance benefit –Health Savings Account (HSA) – the bank account. The insurance benefit is built on the Century Preferred Platform. –Same Network of providers and Pharmacies. The Bank Account is owned by the participant. –You own the money, always. The Dental benefit structure is not changing and is not affected by your Medical plan election. 2

High Deductible Health Plan – Basic Structure The HDHP Medical Plan (Lumenos) is a PPO Plan, with in and out-of-network benefits. Medical Services now subject to Annual Deductible. –Copays no longer apply. Prescription Services now subject to Annual Deductible. –Copays apply after deductible has been met. Dental Services treated same as always; Dental expenses do not count towards Medical deductible. Preventative Medical Services paid at 100% (In-Network); not charged to Deductible. Lumenos High Deductible Plan: –$2,000 Annual Plan Year Deductible for Individual Coverage. –$4,000 Annual Plan Year Deductible for Family Coverage. 3

Health Savings Account – Basic Structure HSA Checking Account: –$1,000 BOE Deposit for Individual participants. –$2,000 BOE Deposit for Family participants. Employee may also fund their Bank Account with payroll deductions or personal deposits You may not participate in a non-HDHP benefit option and contribute to the HSA. Annual Tax Year Limits for contributions (2016): –Individual:$3,350Employee and Employer –Family:$6,750Employee and Employer –Additional “Catch Up” Contribution: $1,000/Year if Age 55+ Note: Board’s deposit is not subject to tax; personal deposits may also be pre-tax. Board and Personal deposits are not subject to tax if withdrawn for qualified Medical services, and used for a tax-qualified member/dependent. 4

Extra Cash Rewards Anthem’s HSA Plan HSA – Bank Account Funded by you and employer to help satisfy annual deductible and save for future medical expenses Preventive Care 100% In-Network Traditional Health Coverage Annual Deductible –Stay healthy with Preventive Care coverage. –You can make contributions to your account to use toward your deductible and/or co-insurance to pay for medical care and prescription drugs (or other qualified expenses). –Once you have satisfied your annual deductible, Traditional Health Coverage then pays towards additional expenses. –Earn dollars in the rewards account to help offset your coinsurance responsibility through rewards for healthy behaviors. –An annual out-of-pocket maximum protects you from large medical expenses. 5

Your HSA Plan Details at a Glance Anthem’s Lumenos ® with HSA PlanSingle CoverageFamily Coverage Preventive Nationally recommended servicesCovered 100% in network HSA South Windsor BOE will fund a portion of Annual Deductible Traditional Health Coverage Annual Deductible You can use the funds from your Health Savings Account to help satisfy your annual deductible $2,000 South Windsor BOE funds a portion $4,000 South Windsor BOE funds a portion Medical and Prescription Expenses After your deductible is satisfied the plan pays Medical and Script expenses as outlined: Medical 100% for in-network providers 80% for out-of-network providers Prescriptions $5/20/40 In-network Retail Annual out-of-pocket (OOP) maximum: Includes Deductible, Coinsurance In-Network & Out-of-Network $4,000 $8,000 6

Earn Cash Rewards Deposited Direct to your HSA Account Earn extra account dollars for activities that contribute to your health and well-being: –Future Moms Participation/Completion:Up to $200 –Healthy Lifestyle Online Participation:Up to $150 –Condition Care Participation/Completion:Up to $300 7

High Deductible Health Plan Plan Expenses Prior to Meeting Deductible: In Network Out of Network –Medical Services: Subject to DeductibleSubject to Deductible –Prescriptions: Subject to DeductibleSubject to Deductible Plan Expenses After Meeting Deductible to Out-of-Pocket Maximums: In Network Out of Network –Medical Services: 0% Coinsurance for20% Coinsurance for approved Covered Expensesamount; balance billing may apply –Prescriptions:Retail: $5/20/40 20% Coinsurance for approved Mail: $10/40/80 amount; balance billing may apply Preventive Care Services: 0% Coinsurance20% Coinsurance for approved amount; balance billing may apply 8

Using Your HSA Plan for Medical Expenses When you visit an in-network doctor: –Show your ID card at the time of service. –Typically you pay nothing at the time of service. Your provider will file a claim. –You will receive a Claim Recap showing the total cost and the “allowed” cost. Your provider will then bill you for the “allowed” cost of the service(s). –If you have funds in your HSA you can pay your provider using your HSA. –If you have fulfilled your deductible, Anthem will pay the provider directly. When you visit a doctor that is not in the network: –Show your ID card at the time of service. –You may be asked to pay at the time of services. –Use your HSA funds to pay your provider for services (provided you have the funds available). –If your provider does not file a claim on your behalf, you will need to file a claim with Anthem BCBS to ensure expenses get applied towards your out-of- pocket. You can download a claim form at anthem.com. 9

Using Your HSA Plan for Pharmacy Expenses When you visit a pharmacy: –Show your ID card –Until you have satisfied your annual deductible you will pay for prescription drugs at Anthem’s discounted prices. –You can use your HSA funds, as long as there are sufficient funds available in your HSA account. –Once you satisfy your deductible, Traditional Health Coverage begins, and you pay the applicable copay cost for In-network and coinsurance cost for Non- network scripts. o Retail 30 day supply – plan pays 100% In-network after Copays of $5/20/40. –For the lowest costs, visit to learn about generics and other cost saving measures. Or order your prescriptions by mail: –If you have not met your deductible, you will pay for the medications at Anthem’s discounted rate. –If you have met your deductible, Anthem will pay the pharmacy directly. –Order a 90-day supply: $10/40/80 in-network. –Take advantage of convenience of home delivery and possibly save money. 10

Making Tax-Free Contributions Ways you can contribute to your HSA account: –Pre-tax through payroll deductions –Post-tax by personal check When you file your taxes, you can make an adjustment to your gross income to receive the tax benefit You’ll receive deposit slips for your HSA in the mail –The Federal annual maximums for 2016 are (per household): $3,350 for individual coverage $6,750 for family coverage Note: Age 55 or older, additional $1,000 yr. allowed –Qualified expenses are listed at IRS website under Publication 502www.irs.gov Limited Use FSA –Pre-tax through payroll deductions –Reimburse anticipated dental & vision out-of-pockets Note: A regular FSA plan is considered as a non-HDHP benefit plan. 11

12 Covered Expenses –Services Covered under the HDHP (medical, scripts) –Services Count towards the Deductible (except Preventive) –Services Reimbursed by the HDHP (In or Out-of-Network) Qualified Expenses –Health Care expenses identified by the IRS as “Qualified” (see Publication 502, –Similar to Qualified Expenses under Sec. 125 Reimbursement Plans. –Includes: o Medical o Prescription Expenses o Dental Expenses o Vision Expenses o Certain OTC Expenses “Covered” vs. “Qualified” Medical Expenses

Anthem.com Quick answers to your questions View your coverage, doctors and prescriptions – with a single click Easily access health services to help improve your life – and those around you Provide access to your health information for loved ones Quickly find doctors and facilities in-network – and see which ones are best View complex information through simple charts, graphs and illustrations Get a side-by-side view of your claims and benefits The Anthem Care Comparison tool is also available to compare the cost of health care services 13