Introducing The High Deductible Health Plan (HDHP) with Health savings account (HSA) 2018 open enrollment: October 23 – November 10, 2017

INTRODUCING THE HDHP with HSA Effective January 1, 2018, Bentley will introduce a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) The plan will be offered through Harvard Pilgrim Health Care (HPHC), our current health plan administrator The HSA will be managed by HealthEquity, a new partner The HDHP with HSA will be offered alongside our three current plans: Best Buy HMO, HMO, and PPO Current plans will have modest changes for 2018 Benefits-eligible Faculty and Staff will have the opportunity to enroll in the HDHP with HSA during the 2018 Open Enrollment period Note: If you (or your spouse/partner, if a tax dependent) are enrolled in Medicare Part A or B or Medicaid, you will not be able to contribute to nor receive Bentley contributions to an HSA

Why is Bentley offering an hdhp with hsa? To provide another option for controlling your healthcare spend To provide you tax/financial benefits

HDHP: YOU’RE IN CHARGE OF YOUR HEALTHCARE DOLLARS The HDHP features lower payroll premiums. You pay more out of pocket at the point of care. After you reach your deductible, the plan pays a percentage of the cost of care, up to the out-of-pocket maximum, at which point the plan pays 100% Prescription drugs are covered as copays after you reach the deductible You can receive both in- and out-of-network care Note: you will be required to pay more for care if you use out-of-network providers

HDHP with HSA: UNDERSTANDING THE COSTS Maximum paid out of pocket after deductible is met Plan Provision HDHP w/ HSA In-Network Out-of-Network Annual Deductible $2,000 / $4,000 $4,000 / $8,000 Out-of-Pocket Maximum $6,000 / $12,000 Coinsurance 90%, after deductible 70%, after deductible Office Visit Emergency Room Inpatient / Outpatient Prescription Drugs (Retail / Mail Order) $15 / $30 / $50 copay $30 / $60 / $150 copay, after deductible n/a OOPM 100% after $4,000 (in-network) Health plan pays 90% (in network) $2,000 Deductible Employee’s share of deductible as little as $1,250 100% Preventive Care (in-network) Employer HSA funding up to $750 Unused HSA funds roll over year to year and are portable You can also contribute pre-tax dollars Note: in order to meet the $4,000 Individual out-of-pocket maximum, you must incur $22,000 in non-preventive covered services

Prescription coverage under the HDHP - UNDERSTANDING THE COST Reminder - OptumRx is the new pharmacy administrator The full cost of prescriptions count toward your deductible until it is satisfied Prescription drugs are covered as copays after you reach the deductible Call OptumRx at 855-546-3439 or visit at optumrx.com/CTRNS to check on the cost of your or the tier. Consider talking to your doctor about lower-cost alternatives, such as generic equivalents, and taking advantage of the mail order service to save money

HOW DEDUCTIBLES AND out-of-pocket maximumS WORK Everything is subject to the deductible, except preventive care. Once the deductible is met, the plan pays a certain percentage of the cost of care, and prescription drugs are subject to copays. The entire $4,000 family Deductible must be met before benefits are provided to any family member. There is no “embedded” individual deductible. Out-of-Pocket Maximum The entire $8,000 family out-of- pocket maximum must be met before benefits are provided to any family member. There is no “embedded” out-of-pocket maximum. Out-of-pocket maximum applies to all covered services, including the deductible.

Total Cost (Illustrative): coverage examples Total Cost (Illustrative): Your Cost: Explanation: Individual: Knee MRI (prior to deductible) $900 $900 Full cost, up to Individual deductible $4,000 Family Deductible, plus 10% Coinsurance on remainder ($1,000) Family: Outpatient Procedure (prior to deductible) $5,000 $4,100 $1,500 $1,500 Individual: 12-Month Tier 2 Medication, Mail Order (prior to deductible) Full cost, up to Individual deductible Individual: 12-Month Tier 2 Medication, Mail Order (after deductible) $1,500 $240 4x $60 Tier 2 Mail Order Copay

Healthcare Premiums: HOW THE HDHP with HSA stacks up The HDHP with HSA has lower payroll premiums than other plan options: Saving you $4,879 for Individual coverage (or $12,642 for Family coverage) vs. the PPO Saving you $2,020 for Individual coverage (or $5,236 for Family coverage) vs. the HMO Saving you $634 for Individual coverage (or $1,643 for Family coverage) vs. the Best Buy HMO

Hsa eligibility: DO YOU QUALIFY? In order to contribute to an HSA, you must: Be enrolled in a qualified High Deductible Health plan (HDHP) Not have other health coverage (see IRS Publication 969) Not be enrolled in any part of Medicare or Medicaid –nor can your spouse/partner, if s/he is a tax dependent Not be listed as a dependent on someone else’s tax return Not be active in the military* Not be enrolled in a Health Care FSA (including through a spouse’s plan) or have a Health Care FSA balance You must have a $0 balance in your Health Care FSA on 12/31/17 to make or receive Bentley’s HSA contributions in the first quarter of 2018 Being enrolled in a Dependent Care FSA does not impact your HSA eligibility * Veterans enrolled in a High Deductible Health Plans with no other disqualifying coverage and who have a service-connected disability may make or receive HSA contributions regardless of when they received VA benefits

HSA: TAX AND FINANCIAL BENEFITS An HSA is savings account that allows you to put aside pretax dollars to pay for qualified medical, dental, and vision expenses for you and your eligible dependents now—and in retirement Bentley helps fund your HSA in two ways (with a contribution on January 1st and matching contributions), and you can contribute too, up to the 2018 IRS limits: $3,450 Individual / $6,900 Family If you are 55 or older or turning 55 in 2018, you can contribute an additional $1,000 in catch-up contributions You benefit from a triple tax advantage: Tax-free contributions Tax-free interest/investment earnings Tax-free withdrawals for qualified expenses Other advantages of the HSA: You can take it with you if you change jobs The balance rolls over from year to year You have the potential to make money on your money by investing your account once you reach a certain balance

Additional $1,000 – if 55 or older Hsa Contributions (2018) January 1: Bentley makes a contribution to your HSA just for enrolling: Bentley Contributes: Individual: $250 Family: $500 Throughout the Year: you contribute to your HSA on a pre-tax basis, and Bentley matches, up to certain limits: You Contribute: Individual: $2,700 Family: $5,400 Bentley Matches: Individual: $500 Family: $1,000 If you take full advantage, Bentley will ensure you don’t exceed the 2018 IRS maximums* 2018 IRS Maximums: Individual: $3,450 Family: $6,900 Additional $1,000 – if 55 or older * Applies to payroll contributions only; Bentley cannot track contributions made outside of payroll. Bentley will ensure your payroll contributions do not exceed the IRS annual maximum.

Payroll Premium Savings & HSA Contribution example HMO: $2,553 2018 Payroll Premium Contributions (Individual): HDHP with HSA: $533 Savings: $2,020 You can contribute some, or all, of these savings to your HSA on a pre-tax basis - = + Bentley will contribute $250, and match dollar-for-dollar up to an additional $500 Your HSA Contribution: $750 = Total Payroll Premium Savings & Bentley HSA Contribution: $2,770 If you contribute an additional $680, you will reach the 2018 IRS limit ($3,450) The highest cost you could incur (worst-case scenario) under our HDHP with HSA plan design is $4,000, only $550 more than the IRS HSA contribution limit

WHAT ARE QualifyING HSA expenses? Qualified medical expenses are outlined in IRS publication 502, and IRC Section 213 and include: Deductibles Copays Coinsurance Eyeglasses/contact lenses Dental care Important notes regarding eligible expenses: HSA funds can be used for qualified expenses for your tax dependents. You cannot use HSA funds for adult child dependents or domestic partners’ claims unless you claim them as dependents on your tax return. You can only use HSA funds for reimbursement of claims incurred after the date the HSA is opened (January 1). You can continue to use HSA funds for qualified expenses even if you are no longer enrolled in a qualified HDHP, however, you are not able to contribute additional funds to the HSA if you are no longer enrolled in a qualified HDHP. If you use HSA funds to pay for non-qualified expenses, those funds will be taxed as ordinary income and be subject to an additional 20% penalty.

Is the hdhp with hSA right for you? The HDHP with HSA may be right for you if you: Are willing to have higher deductible (and point-of-care costs) in exchange for lower payroll premium costs Prefer the tax/retirement savings opportunity Want to have access to both in- and out-of-network providers, knowing that out-of-network care costs more Would like Bentley to contribute to your HSA

How to use your hdhp with hsa: ALEX® Bentley will provide you with ALEX®, an interactive animated online tool, to help you decide which plan best meets your needs

TOOLS & Resources YOU CAN USE Once you enroll in the HDHP with HSA, you’ll have access to a variety of helpful tools and resources. HPHC Portal HealthEquity HPHC $aveOn

LEARN MORE – COMING SOON If you enroll in the HDHP with HSA, you’ll be invited to an education session in December (dates/times TBD). Discussion topics will include: How to make the most of the HDHP All about HSAs: contributing, saving, investing, and using Maximizing your tools and resources: HPHC, HealthEquity, and $aveOn

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