Infinisource HSA Administration 11/20/2019

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 2020: $3,550 individual – $7,100 family HSAs are available only to individuals with qualifying High Deductible Health Plan (HDHP) coverage Not available to those receiving benefits under Medicare

What is an High Deductible Health Plan (HDHP)? Minimum annual HDHP deductible 2020: $1,400 individual – $2,800 family Annual HDHP out-of-pocket maximum 2020: $6,900 individual – $13,800 family Cannot provide first dollar coverage, with certain exceptions – preventive care, dental, vision, limited-use FSA

HSA Trends - Adoption Nearly 2/3 of employers will offer an HDHP with an HSA in 2013, and an additional 25% are considering such an offering in the next 2-3 years. This means that as many as 9 out of 10 employers may offer this type of plan by 2015 For employers planning to offer a CDHP in 2013, 79% say they will offer a CDHP linked to an HSA in 2013, up from 75% in 2012, while 29% will offer a CDHP linked to an HRA, up from 16% in 2012 Enrollment in high deductible plans with HSAs increased from 20.5% to 29.5% in 2011 60% of employers offering single coverage and 57% offering family coverage through HSA-qualified HDHPs make contributions towards the HSA In mid-2012, HSA assets totaled $14.1 billion, a year over year increase of nearly 21% since mid-2011 By 2015, HSA assets are projected to grow to $27.6 billion 40% of companies include HSAs in their retiree medical strategy, and another 20% are planning to do so in the next 3 years

HSA Trends - Demographics 49% of all individual HSA/HDHP enrollees were age 40 or over; 51% were under age 40 On average, HSA account balances have grown 31% each year The average yearly administration fee for HSA investment programs is $32 Average employer contributions to HSAs are $886 for single coverage & $1,559 for family coverage The average HSA accountholder is saving approximately $500 in taxes annually Nearly 1/4 of continuously contributing HSA account holders save most of their contributions, which will help pay for escalating costs of health care in retirement

Maximum Out-of-Pocket 2020 Health Savings Accounts Contribution Limits, Deductibles and Out-of-Pocket Expenses Minimum Deductible Maximum Out-of-Pocket Contribution Limit 55+ Contribution SINGLE $1,400 $6,900 $3,550 $1,000 FAMILY $2,800 $13,800 $7,100

HSA Product Characteristics Consumer Owned Account Balance Contributions Distributions 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 may carry over year to year Funds are portable Funds may be invested and earn interest for greater savings potential Evolution1 Inc. ©2013 • All Rights Reserved

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

Why Our HSA Program is Right for Your Business

Employer Experience Employee Management Employer Portal Online lookup helps employers respond to employees’ questions and issues. Employer Portal Securely access data and reports, submit changes and files, and proactively schedule contributions EMPLOYER PORTAL Automated 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 Enrollment and Eligibility Management Conveniently exchange eligibility files, or enroll employees through the Employer Portal. Account Funding Multiple options available for funding accounts, including election-based scheduled contributions, ACH funding, and file-based contribution submission via Consumer Data Exchange. Or use Employer Portal to directly set up recurring contribution schedule, and load payroll deductions and employer contributions.

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

Insulation from Compliance and Regulatory Complexity Privacy, Security… Compliance… 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 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

HSA’s Empower Employers & Employees Employer Portal – Empowers Employers 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 Consumer Portal – Empowers Employees 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)

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

Employee Benefits We’ve made it simple for Employees! No minimum balance FDIC insured cash and interest bearing account Attractive investments Industry leading investment options No fees for trades Convenient self-service 24x7 Intuitive Consumer Portal Online enrollment Single sign-on to investments Seamless, flexible fund access Integrated debit card Online access to accounts Automatic, intuitive 2-way sweep

Employee Experience Automated Communications Mobile Consumer Portal Mobile app lets tech- savvy consumers manage their CDH accounts right from their phone. Over 10 statements and notifications – all accessible via e-mail, consumer portal, and mail when necessary. Consumer Portal Robust, branded portal empowers employees, providing everything they need to know about their account, with an industry- leading design that enables quick and easy navigation of content. Flexible Payment Options Employee can choose from: Debit card, which increases consumer satisfaction by reducing paperwork. Consumer-Initiated Payment on Consumer Portal

HSA Employee Experience Pay bill with Debit Card Sara goes to the doctor Sara receives bill from provider and matching EOB showing amount owed Sara has options! Use Online Consumer-Initiated Payment Provider submits expense to health plan Pay bill with after-tax dollars and submit for reimbursement Pay bill with after-tax dollars and leave money in HSA to accrue interest Health plan processes claim and applies discounts Pre-set to add to Expense Tracker – then later choose to pay from HSA or pay with after-tax dollars and leave money in HSA to accrue interest Pre-set to pay provider claims automatically by check or EFT

Integrated HSA Investments Powerful Features Account Information Balance by Investment Personal Rate of Return Fund Performance Transaction Detail Fund Activity Summary Pending/Activity history Manage My Account Investment Elections Realign Investments Transfer Investments Automatic Rebalance Integrated Resources Planning & Guidance Account Projection Financial Calculators Reference FAQ Personal Performance Rate of Return Automatic Sweep Automatic Portfolio Rebalancing

Consumer: Tax Forms Online Form 8889 – Consumer files with taxes Form 1099 – Distributions Distribute by February 1st Form 5498 – Contributions Distributed by June 1st Must include yearly total of contributions and form 8889 with tax forms

Our Mobile App Apps allow your employees to: Check available balances View account activity Drill into claim transactions and contributions Access convenient customer service contact info Submit claims Upload receipts using device’s camera