American Benefit Administrators HSA Administration

Agenda HSA Overview Cost Savings with HSAs Why Our HSA Program is Right for Your Business Why Our HSA Program is Right for Your Employees Next Steps Edit as needed.

HSA Overview

What is an HSA? An HSA is a tax-advantaged account for the purpose of paying for eligible medical expenses Not employment based Allows contributions by the employer and employee Annual contribution limits 2018: $3,450.00 individual – $6,900.00 family HSAs are available only to individuals with qualifying High Deductible Health Plan (HDHP) coverage Not available to those receiving benefits under Medicare

24% HSA Growth Potential for people to put money into an HSA Percent 29.0 31.3 33.9 36.9 36.7 39.4 NOTES: CDHP is consumer-directed health plan, which is a high deductible health plan (HDHP) with a health savings account (HSA). HDHP no HSA is a high-deductible health plan without an HSA. The individual components of HDHPs may not add up to the total due to Rounding. Data are based on household interviews of a sample of the civilian noninstitutionalized population. SOURCE:: NCHS, National Health Interview Survey, 2010–2016, Family Core component. Potential for people to put money into an HSA 24% of people covered by an HDHP do not have an HSA and may be eligible to open one 2010-2016 In 2016, 39.4% of persons under age 65 with private health insurance were enrolled in an HDHP, including 15.5% who were enrolled in a CDHP (an HDHP with a health savings account [HSA]) and 23.9% who were enrolled in an HDHP without an HSA. Among those with private insurance, enrollment in HDHPs has generally increased since 2010.   The percentage who were enrolled in an HDHP increased more than 14 percentage points, from 25.3% in 2010 to 39.4% in 2016. More recently, the percentage who were enrolled in an HDHP increased, from 36.7% in 2015 to 39.4% in 2016. The percentage who were enrolled in a CDHP doubled, from 7.7% in 2010 to 15.5% in 2016. More recently, the percentage who were enrolled in a CDHP increased, from 13.3% in 2015 to 15.5% in 2016.

HSA Spotlight Total assets today $37B $1.7 $3.4 $5.5 $7.2 $9.9 $12.2 $15.5 $19.3 $24.2 $30.2 $37.0 $44.5 $53.2 Total assets today $37B in 2018, growing to estimated $53.2B in 2018 investments $8.8B HSA RESEARCH REPORT - 2/12/2017

What is an High Deductible Health Plan (HDHP)? Minimum annual HDHP deductible 2018: $1,350.00 individual – $2,700.00 family Annual HDHP out-of-pocket maximum 2018: $6,650.00 individual – $13,300.00 family Cannot provide first dollar coverage, with certain exceptions – preventive care, dental, vision, limited-use FSA

2018 Health Savings Accounts Contribution Limits, Deductibles and Out-of-Pocket Expenses Minimum Deductible Maximum Out-of-Pocket Contribution Limit 55+ Contribution SINGLE $1,350 $6,550 $3,450 $1,000 FAMILY $2,700 $13,300 $6,900

HSA Product Characteristics Consumer Owned Contributions Distributions Account Balance Must be paired with a qualified high deductible health plan (HDHP) May pair with Limited Purpose FSA and/or HRA Vision, dental expenses only Employer and/or consumer may contribute to account Contributions made by payroll deduction, check, transfer IRS restrictions on annual contribution amount No third party substantiation required – consumer responsible Internal Revenue Code §213(d) expenses may be reimbursed Funds may be withdrawn for non-qualified expenses with penalty Funds carry over year to year (perpetual account) Funds are portable Funds may be invested and earn interest for greater savings potential

Account Characteristics CDH Plan Comparisons Account Characteristics HSA HRA FSA Who owns the account? Consumer Employer Who contributes to the account? Consumer and/or employer What amount can be contributed? The IRS establishes the annual allowable amount and indexes this amount for inflation. There are no restrictions. Currently, no restrictions. Beginning 1/1/13, limited to $2,500 per covered employee. How are contributions made? Through payroll deduction, check, or transfer. Through payroll deduction. Can funds in the account carry over from year to year? Yes. Depends on plan design opted by employer. No. Are funds portable in the event of job change or death? No. Funds are forfeited. Do funds accrue interest? Yes, interest can accrue. No. Interest does not accrue. Can funds be invested? Yes. Funds can be invested. Is third party substantiation of expenses required? No. Consumer is responsible for substantiating the use of funds. Yes. Each claim or transaction must be substantiated. Is the annual amount of the contribution available on the first day of coverage? No. Funds are available after they are contributed. Depends on the employer’s choice for funding the plan What expenses can be reimbursed? All IRS-defined medical expenses All or a subset of IRS- defined medical expenses Can funds be withdrawn for non- medical expenses? Yes, but these funds are subject to an additional 20% tax penalty, except when an individual is 65 or older, disabled or died during the year.

Our HSA Solution The only true multi-account solution for HSAs – all account types are available on a single platform and service experience, debit card, and mobile apps Provides a comprehensive, one-stop, compliant HSA administration capability Includes both cash accounts and investment options Includes a private labeled custodian option with secure, FDIC-insured deposits at HealthcareBank, a division of Bell State Bank & Trust, a $4B financial institution Insert your logo here

Why Our HSA Program is Right for Your Business

HSAs Help with Account Retention 40% of HSA enrollees hold onto accounts for at least 3 years.

Employer Experience Enrollment and Eligibility Management Use the Consumer Data Exchange to integrate with WEX Health Cloud for exchanging eligibility files, or enroll employees through the Employer Portal. Employee Management Online lookup helps employers respond to employees’ questions and issues. Automated Communications Over 10 statements and notifications – all accessible via e-mail, consumer portal, and mail when necessary. Account Funding Multiple options available for funding accounts, including scheduled contributions, ACH funding, and file-based contribution submission Reporting Over 50 standard employer reports and notifications, as well as custom reports, if available, are accessible via email and/or secure, self-service Employer Portal

Powerful HSA Reporting for Employers HSA Account Summary HSA Account Summary Employer HSA Summary Report Employer HSA Account Details Report Custodial/Admin HSA Management Custom Reporting Solutions

Insulation from Compliance and Regulatory Complexity Privacy, Security… HIPAA and privacy compliance of personal, medical, financial data 99.99% online portal uptime Online access secure, authenticated (two-factor) HSA investment allocations controlled by consumer Compliance… Reconciliation and proactive maintenance of accounts Paperless legal disclosures Compliance processing (OFAC/CIP/IDV) Debit Card real-time integration and compliance HSA maximum contribution controls HSA tax reporting

Value: Employer’s Perspective Self-Service Empowers Consumers Consistent Communication & Branding Opportunities Employer Portal Empowers Employers 24x7 access to manage their CDH accounts Secure, encrypted access to accounts Easy to use interface (saves time) Access to forms on the system Online enrollment & claim filing Ability to track claims Quick reimbursement with direct deposit Less help is needed from HR (makes your job easier) Automated communication - email alerts One-click answers to benefit questions Opportunity to brand the solution & the debit card Plan details and documentation Employee/Plan Participant research and service Reports - Advanced benefit management tools & analysis available online or via e-mail Paperless banking transactions – NACHA file generated for you

Why Our HSA Program is Right for Your Employees Replace “Employees” with Consumers, Members, Participants as needed.

Auto-stacked accounts. 85 – 95% auto-substantiation Employee Experience Consumer Portal Robust, branded portal empowers consumers, providing everything they need to know about their account, with an industry-leading design that enables quick and easy navigation of content Convenient Self Service 24x7 Consumer Portal Mobile application Online enrollment Integrated investment management Mobile App Mobile app lets tech-savvy consumers manage their CDH accounts right from their phone Auto-stacked accounts. 85 – 95% auto-substantiation Automated Communications Over 10 statements and notifications – all accessible via e-mail, consumer portal, and mail when necessary. Flexible Payment Options Consumer can choose from: Debit card, which increases consumer satisfaction by reducing paperwork. Consumer-Initiated Payment on Consumer Portal Claims Exchange with auto-pay or Expense Tracker

Single Platform Multi-Account Health Savings Accounts One-stop solution for all consumer driven healthcare accounts Cash Account Investment Accounts Health Reimbursement Accounts Stacked Card Diverse Plan Design Options Flexible Spending Accounts Stacked Card with HSA, HRA Standard and Limited Purpose Dependent Care FSA

On-line Bill Pay & Contributions Consumers may send payment directly to the parties who need payment. Request check to reimburse themselves or send directly to their provider HSA eContribute Consumers may choose to have contributions set up from more than one bank account Flexible payment methods Consumers may update their reimbursement and distribution payment methods at any time during the plan year—not just at enrollment.

Integrated HSA Investments No minimum balance FDIC insured cash and interest bearing account Attractive investments Industry leading investment options No fees for trades Integrated Investment Guidance Tool Convenient self-service 24x7 Intuitive Consumer Portal Online enrollment Integrated investment management Seamless, flexible fund access Integrated debit card Online access to accounts Automatic, intuitive 2-way sweep

HSA Investment Experience Stock Market at-a-glance HSA Investment Account Homepage! Message Center Pie chart shows election by percent Account Balance Rate of Return YTD sweep from cash account Rate of Return Analytics Easy access to update & realign investments Net Investment with Returns Analytics

Integrated HSA Investments Powerful Features Automatic Portfolio Rebalancing Automatic Sweep Integrated Resources Investment Guidance Tool

Online Investment Guidance Tool Sophisticated financial-planning tool Helps consumer determine healthcare expenses needs upon retirement Provides personalized risk assessment Educates consumers in respect to investment options Perform infinite number of “what if scenarios” Recommends specific asset class allocations Provides information and tools to select mutual funds Records consumer choices and returns seamlessly into investment platform

ABA Mobile App Mobile App allows consumers to: Check available balances- including cash & investment Access account details HSA contributions HSA Distributions Use ‘Quick View’ to view graphs Check claims requiring receipts Submit claims notional accounts Submit receipts using camera Enter & view expense info via ‘expense tracker’ Report a debit card as lost or stolen Click to call/email Customer Service Update username/password Native app for iOS and Android

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