Winning with an HSA Nothing in this communication is intended as legal, tax, financial, medical or marital advice. Always consult a professional when making life changing decisions. It is the members' responsibility to ensure eligibility requirements as well as if they are eligible for the plan and expenses submitted. No soliciting. No recording. No photography. No part of this presentation may be copied, recorded, or rebroadcast in any form.

Winning with an HSA Speaker Notes: HealthEquity is the oldest and largest dedicated health savings account custodian, and because of that we are passionate about HSAs and their ability to empower our members to build health savings for their future/ retirement With the healthcare industry being as complex and ever-changing as it is, none of us really know what insurance we might have in the future or what medical expenses we may encounter. Because of that, it makes sense to try to plan and save for those future expenses, just like we plan and save for retirement, and an HSA is ultimately the best way to do that… so let’s talk about why….

Health care costs in retirement The average couple retiring this year will incur $220,000* to cover medical expenses during retirement This is $325,000 gross withdrawal from traditional 401(k) plan to achieve net $220,000 medical expense in retirement** -or- Only $220,000 tax free withdrawal from HSA * Fidelity Benefits Consulting https://www.fidelity.com/viewpoints/retirement/retirees-medical-expenses ** Assumes 33% tax rate

Why choose an HSA? Easy win in today’s complex health care system: Save now: Lower monthly insurance premiums HSA deposits aren’t taxed or are tax deductible Typically lowers income tax liability Save for the future: The average retired couple will need $220,000 to cover medical expenses not covered by Medicare in retirement* HSA funds roll over from year to year Tax-free interest earned You keep the money even if you change jobs or insurance plans Comprehensive and easy investment options Same doctors, same network, same pricing Speaker notes: Use statistic to emphasis the importance of using the HSA to save for medical expenses in retirement Emphasis the benefit of staying in network if possible: Same doctors, same network, same pricing. However you can choose to go out of network and still use tax free funds from the HSA. * Source: Fidelity http://www.fidelity.com/inside-fidelity/employer-services/fidelity-analysis-reveals-extra-health-care

Two Parts: Health Plan + Savings Account HSA-qualified plan through insurance Preventative services covered at 100% Office Visits, Rx, Deductible, Copays, and Coinsurance ALL count towards Out of Pocket maximum There are actually two parts to an HSA – a special type of health plan paired with a tax-advantaged savings account. HSA through HealthEquity Tax-free savings for medical expenses Works in conjunction with the HSA powered plan HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-free with very few exceptions. Please consult a tax advisor regarding your state's specific rules.

How an HSA works Traditional health plan vs. HSA-qualified health plan Lower monthly premium Higher deductible Larger monthly premium Lower deductible Speaker Notes: Money into the savings account is Tax Free Money into savings account

Qualified medical expenses: How an HSA works You and/or your employer $ Speaker Notes After age 65 the HSA can be used for non-medical expenses with no additional penalties similar to an IRA or 401k. $ Qualified medical expenses: Exams, prescriptions, procedures, vision, dental and more For illustrative purposes only. Visit the IRS website for a complete list of qualified medical expenses.

Maximize your savings Maximize your HSA contributions in 2016: Single-coverage: $3,350 (2015: $3,350) Save up to $1005 in Taxes!* Family-coverage: $6,750 (2015: $6,650) Save up to $2025 in Taxes!* Catch-up contribution, age 55+: $1,000 Speaker notes: - At the very least, members should make deposits into their HSA that match their medical expenses incurred so they can benefit from tax savings. *Estimated savings are based on an assumed combined federal and state income tax bracket of 30%. Actual saving will depend on your taxable income and tax status. HealthEquity does not provide tax advice.

How to contribute to your HSA Make pre-tax contributions through payroll deductions Change your payroll contributions at any time Make post-tax contributions directly to HealthEquity online or by sending a check Fully fund your HSA on day one Make contributions anytime after your HSA is open Can make contributions up until April 15th for the previous tax year It is the member’s responsibility to ensure eligibility requirements as well as if they are eligible for the plan and expenses submitted. One should consult a tax advisor as individual factors and situations vary.

Who is eligible for an HSA? To contribute to an HSA, you need to: Be covered ONLY by an HSA-qualified health plan Other health coverage (including Medicare, a traditional health plan) may disqualify you No full purpose FSA (including through a spouse) Not claimed as a dependent on someone else’s tax return It is the member’s responsibility to ensure eligibility requirements as well as if they are eligible for the plan and expenses submitted. One should consult a tax advisor as individual factors and situations vary.

HSA winners Speaker Notes: We constantly hear from people that an HSA powered health plan is not right for them for various reasons: “I spend too much on healthcare” “I never go to the doctor” However, here at HealthEquity we’ve done some research to compare HSA powered plans with traditional insurance, and the different ways people spend money on healthcare. We discovered that no matter how you spend money on health care, there is the potential to save on this type of plan. We’ve identified 4 main categories of healthcare consumers, and we will discuss how each can save on the following slides. Additionally you can visit the site: www.Healthequity.com/me to determine who you are

The shopper SHOPPER: High medical utilizer Hits out-of-pocket maximum with traditional health plan How a Shopper wins: Significantly lower monthly premiums No copays on top of out-of-pocket expenses Out-of-pocket expenses are paid with tax-free HSA funds Speaker: Try to give examples and make it relatable to the audience. Example: “I think of a shopper as maybe a young family with several children. Maybe there are a lot of visits to the ER for broken bones and stitches, or several visits to the instacare during cold and flu season.” One way that a shopper can potentially save on this plan is that they don’t have copays on top of out of pocket expenses. A lot of people don’t realize how those copays can really add up throughout the year for all of those visits. * Results may vary. Based on plan design, contributions and your tax rate.

The minimalist MINIMALIST: Low medical utilizer Desires flexibility and minimum monthly premium How a Minimalist wins: Significantly lower monthly premiums Out-of-pocket expenses are paid with tax-free HSA funds Speaker Notes: A minimalist has the potential to save a lot of money on this type of plan because they simply don’t go to the doctor very much. Preventative visits are covered at 100%, so they will have very few additional expenses per year on top of that. Most of what they save can go right into the account and rollover for years to come A lot of our minimalists tend to use their HSA dollars for things like dental and vision throughout the year. * Results may vary. Based on plan design, contributions and your tax rate.

The saver SAVER: Financially savvy Optimizes account savings How a Saver wins: Another avenue for investing tax-free Significantly lower monthly premiums Out-of-pocket expenses are paid with tax-free HSA funds Speaker: Our savers are really thinking of this as a long-term investment tool They typically take advantage of our investment options for long term tax free growth, and may not even use the funds in their HSA for medical expenses now so they can build the balance up The reason they feel comfortable paying out of pocket now and leaving the money in the HSA is because there is no time limit to go back and reimburse themselves for those expenses. * Results may vary. Based on plan design, contributions and your tax rate. For illustrative purposes only. Investments available to HSA holders are subject to risk, including the possible loss of the principle invested and are not FDIC insured or guaranteed by HealthEquity. Results may vary. Based on plan design, contributions and your tax rate.

The survivor SURVIVOR: One or more chronic conditions Hits out-of-pocket maximum with traditional health plan How a Survivor wins: Prescription out-of-pocket expenses are capped, no copays Significantly lower monthly premiums No copays on top of out-of-pocket expenses Out-of-pocket expenses are paid with tax-free HSA funds Speaker Notes: One way that survivors can potentially save with this type of plan is that their prescription out of pocket expenses are capped. They may have several expensive prescriptions which would allow them to reach the out-of-pocket max early in the year, and then they would pay nothing for their medical expenses the rest of the year. * Results may vary. Based on plan design, contributions and your tax rate.

Let us do the math! Compare your health plans side-by-side Plan comparison tool Let us do the math! Compare your health plans side-by-side www.CompareMyHSA.com

Convenient Access Convenient access Use your HealthEquity account to Debit card Online Using our free mobile app By telephone Use your HealthEquity account to Check your balance Review transactions Review claims Submit new claims or documents Send payments and reimbursements Access tax documents Debit card is issued by Bancorp Bank pursuant to a license from Visa U.S.A. Inc. The Bancorp Bank; Member FDIC.

HealthEquity mobile app Convenient, powerful tools: On-the-go access for all account types Take a photo of documentation with phone and link to claims and payments Send payments and reimbursements from HSA Manage debit card transactions View claims status Available FREE for iOS and Android Must activate account via HealthEquity website in order to utilize mobile app.

Account Mentors 866.346.5800 www.healthequity.com Always available Our member services agents are taking calls 24 hours a day, every day of the year Call today Let us conduct a personal assessment of your plan options 866.346.5800 www.healthequity.com HealthEquity, Inc. does not provide legal, tax, financial or medical advice. Always consult a professional when making life changing decisions. 19