Presented by Steve Costello and Erin Devine of CBG Benefits Introducing HSA Qualified Medical Insurance 2013 - 2014 Presented by Steve Costello and Erin Devine of CBG Benefits

Open Enrollment Changes Choice of Two Medical Plans Harvard Pilgrim Best Buy HMO $1,000/$2,000 Deductible Current Plan – 3% reduction Riedell will contribute $500 per employee to the HRA Harvard Pilgrim Best Buy HSA HMO $2,000/$4,000 New Plan – 23% reduction Riedell will contribute $500 per employee to the HSA Defined Contribution Employer Funding Guardian Dental New Plan – 25% reduction HR Connection Enrollment & Education Portal Renewal Presentation   HMO Options Deductible II – 3% PPO $1,000 Deductible with Hospital Choice Cost Share +10% Solution: Renew HMO Options Deductible II and introduce the HSA Compatible PPO Middle Saver Deductible Plan Presentation will: Outline Medical Plan Design Describe Health Savings Account (HSA) Explain employer contributions to HSA account Show reduced premiums for employees

Traditional Plan vs. HSA Plan

HSA Eligibility HSA Compatible Health Plan Requirements: High-deductible medical plan Full family or “collective deductible” deductible must be met before the plan pays benefits to any member All Rx is subject to the plan deductible Employees must: Be enrolled in only a qualified health plan on the first day of any month for which eligibility is claimed Not be enrolled in Medicare Not be claimed as a dependent on someone else’s tax return Not be enrolled in a standard FSA (including spouse)

Current Best Buy HMO $1,000 New HSA Best Buy HMO $2,000 Deductible: $1,000/$2,000 $2,000/$4,000 Deductible Year: Plan Year: Deductible tracked per individual; no member can incur more than the individual deductible Plan Year: Deductible tracked per family; full family deductible must be met before plan provides benefits In-Network Annual Preventive Care Covered in full Physician Office Visit $20 copay Covered in full after deductible Specialist Office Visit Chiropractic Office Visit PT,OT, Speech Office Visit Mental Health Office Visit Diagnostic Laboratory & X-Ray Emergency Room Visit $100 copay after deductible $150 copay after deductible Out-Patient Day Surgery RX Copay 30-day supply $5/$20/$30/$50 RX Copay 90-day supply $10/$40/$60/$150 RX Deductible None Combined with medical deductible

Health Savings Account (HSA) A Tax – Free Savings Account Contribute and keep what you don’t spend Money stays with you regardless of employment Unlike FSA, funds roll over from year to year Contributions can be adjusted periodically Invest and earn interest on your balance tax free Online portal for managing/paying bills

HSA Contribution Limits HSA Contribution Limits for 2014: Employee Only: $3,300 Family: $6,450 Note: People over age 55 can make an additional catch up contribution of $1,000 Riedell Contributions to HSAs: Employee Contribution Max Employee Only: $500  Employee Only: $2,800 Family: $500  Family: $5,950 Note) Employees enrolled in the FSA cannot establish the HSA until February 1, 2014

Defined Contributions Allowance Annually Monthly Bi-Weekly Employee Only $3,545.90 $295.49 $136.38 Family $9,402.32 $783.53 $361.63 Defined Contribution Applied to Medical Plan & Dental Bi-Weekly Contribution HMO $1,000 + Dental HSA $2,000 + Dental Employee Only $113.68 $65.37 Employee + Family $306.19 $177.69 Annual Payroll Deduction Difference - Combined Medical & Dental HMO $1,000 + Dental HSA $2,000 + Dental Employee Only -$404.30 -$1,660.36 Employee+ Family -$979.16 -$4,320.16

Q. Who is eligible to open and contribute to a Health Savings Account? A. Here are the HSA eligibility requirements: Enrolled in a qualified HSA health Plan No other health coverage Not be enrolled in Medicare Not be claimed as a dependent on someone else’s tax return Not be enrolled in a FSA

Q. What happens to the money in my HSA if I leave my job, retire or enroll in a non HSA qualified Health Plan? A. You take the money with you whenever you go. The HSA is in your name. It is your account. If you enroll in Medicare or go to another employer that doesn’t have a qualified HDHP, you can still use your HSA money to pay for co-pays and qualified medical expenses, but you won’t be able to make contributions to your HSA.

Q. My domestic partner is covered on my insurance plan Q. My domestic partner is covered on my insurance plan. Can I use my HSA for my domestic partner’s medical expenses? A. If your domestic partner meets the IRS qualifications of a tax dependent you can legally use your HSA funds for his/her medical expenses.

Q. Do I pay for the full doctor’s visit when I go to the doctor? A. You are responsible to pay the amount your insurance has contracted you to pay, typically a discounted rate, until your deductible is met. You can use your HSA for this expense. It is best to have the doctor’s office put the charge through so you receive credit to the deductible and know exactly what to pay.

Q. I paid for an eligible medical expense out of pocket Q. I paid for an eligible medical expense out of pocket. Can I reimburse myself with money from my HSA? Yes. You can reimburse yourself from your HSA for any expense incurred after the HSA was established. There is no time limit for reimbursements.

Q. Can I make adjustments to my HSA account contributions? Yes. You can make adjustments to your contributions. You must notify HR 15 days before the adjustment is to take place.

Q. Are there fees associated with my HSA? A. The account set up fee and monthly admin fee are covered by your employer while you are an employee. If you leave your employer your account may be charged up to $3.95 per month or you may select another HSA Vendor. There is no fee for electronic reimbursements and payments but $2.00 fee per paper check. Lost/stolen/damaged cards are $5.00 and paper statements are $1.00 but electronic statements are free.

Q. When can I invest my funds? You can invest your funds once you reach a $2,000 balance. You can do this through the HealthEquity web portal. Earnings are tax free and do not impact your annual contribution limit.

Q. How do I access my account? A. You will receive a VISA debit card in the mail and instructions to verify your account. You can see your account balance, claim transactions and more online. You can also pay providers, reimburse yourself and manage your personal information. Access your account at www.myhealthequity.com. You can call HealthEquity at 877-694-3938 and someone is available to help 24/7/365.

Member Portal: log on at www.myhealthequity.com

Key things to know about the HRA & FSA plan: Health Reimbursement Account (HRA) and Flexible Spending Account (FSA) Key things to know about the HRA & FSA plan: The HRA and FSA vendor will be HealthEquity HealthEquity will pay HRA claims directly to the provider FSA participants will receive a VISA debit card Employees enrolled in the HSA are not eligible for a standard FSA HSA employees eligible for a limited FSA – funds can be used for dental and vision expenses only

Guardian Dental Dental Benefit Details In Network Out of Network Plan Year Calendar Year Annual Plan Maximum (per person) $1,000 Maximum Rollover Included Preventative Service 100% Basic Service 80% Major Service 60% 50% Orthodontia Service None Waiting Period

HR Connection Enrollment Portal