©2007 Regence BlueCross BlueShield of Utah Regence HSA Healthplan A new kind of health care coverage [Enter Your Own Information Here] [Enter Your Clients Information Here]

©2007 Regence BlueCross BlueShield of Utah 2 Regence HSA Healthplan What is an HSA? How does it work? The Power of HSA The Power of Regence Banking Partners HSA Bank Wells Fargo

©2007 Regence BlueCross BlueShield of Utah 3 What is an HSA? How does it work?

©2007 Regence BlueCross BlueShield of Utah 4 Health Savings Account: How it Works Enroll in anHSA-qualified health plan Open a Health Savings Account The health plan and HSA work together coverage under the health plan kicks in once the deductible is satisfied the account belongs to the employee contributions are tax-deductible start paying for qualified medical expenses from the HSA right away save and invest for future health care expenses or retirement

©2007 Regence BlueCross BlueShield of Utah 5 More About the Health Plan Employees must be covered by an HSA-qualified health plan in order to open and contribute to a Health Savings Account Premiums are generally more affordable than traditional health plans You control your overall health care costs by determining how much to fund employees health savings accounts IRS Rules for HSA-Qualified Health Plans Minimum deductible amounts Maximum out-of-pocket limits All medical and prescription benefits, except for preventive care, must be subject to the deductible

©2007 Regence BlueCross BlueShield of Utah 6 HSA Contributions Pre-tax contributions can be made by both employees and employers Annual contribution maximums are determined by the IRS Account Ownership & Use The employee owns the funds permanently, they roll-over each year and follow the employee wherever he/she goes HSA funds can be invested for future medical expenses or retirement HSA funds can be used tax-free for qualified medical expenses More about the HSA HSA-Qualified Medical Expenses Deductible Coinsurance Alternative care Dental care Vision care Out-of-pocket expenses for services covered by the health plan: Lasik eye surgery OTC medications And much more! Out-of-pocket expenses for services beyond the health plan, such as:

©2007 Regence BlueCross BlueShield of Utah 7 Additional IRS Guidelines Eligibility Employees must meet the following IRS guidelines in order to open and contribute to an HSA Must be enrolled in an HSA- qualified health plan Must not have coverage under another health plan, such as a spouses plan Cannot be enrolled in Medicare Cannot be claimed as a dependent on someone elses tax return Comparability & Nondiscrimination Comparability, which requires that employers provide comparable contributions (same dollar amount or same % of deductible) to employees in the same class, applies only to employer groups which do not have a section 125 (cafeteria) plan. Nondiscrimination, which prohibits employers from favoring highly compensated and/or key employees, applies only to employer groups which have a section 125 (cafeteria) plan.

©2007 Regence BlueCross BlueShield of Utah 8 The Power of HSA

©2007 Regence BlueCross BlueShield of Utah 9 HSA: A Different Kind of Health Plan Contribution Control You choose how much to contribute, giving you more control over your annual health care costs Your HSA contributions become a growing asset for your employees, as they roll over each year and offer a tax-free investment vehicle Employees have a choice whether to spend their HSA funds on qualified medical expenses today, or save for future medical expenses or retirement Employees have ultimate ownership over their health care dollars Employees own the funds Employees own the decisions Plan Personalization Roll Over OWNERSHIP

©2007 Regence BlueCross BlueShield of Utah 10 Tax Advantages HSA is the only investment opportunity that offers this unique triple tax savings Employee Employee HSA contributions are tax-deductible for the employee Interest and investment gains are not taxable HSA distributions for qualified medical expenses are tax-free Employer Employer HSA contributions are tax-deductible for the employer Employee contributions made under a section 125 cafeteria plan do not count as wages and therefore result in lower payroll taxes

©2007 Regence BlueCross BlueShield of Utah 11 The Power of Regence

©2007 Regence BlueCross BlueShield of Utah 12 Regences Full Service Solution Robust Benefit Package Employee Navigationa l Tools AdministrativeSupport Unlimited, upfront preventive care and built-in wellness programs Coverage against the unexpected Support at each step of the way Multiple lifelines for personalized support Guided tours from the basics to plan customization and total ownership

©2007 Regence BlueCross BlueShield of Utah 13 Robust Benefit Package Unlimited preventive care coverage before the deductible gives your employees access to the care they are most likely to use Built-in wellness programs help your employees lead healthier lives, including: 24-hour access to CareEnhance ® Nurseline Regence Health Coach for 1:1 support Special Beginnings maternity program Wellness Preventive Financial Protection Catastrophic coverage protects your employees against the unexpected

©2007 Regence BlueCross BlueShield of Utah 14 Benefit Snapshot Benefit Options Provider Networks Lifetime Maximum Deductible Options OOP Maximum Coinsurance Office Visits Preventive Care Prescriptions In-Network Traditional ValueCare $2 million $1,500 single / $3,000 family $2,500 single / $5,000 family* $3,500 single / $7,000 family* $5,000 single / $10,000 family *$3,000 embedded single deductible option available 80% Deductible & coinsurance Deductible waived No annual limits 80% coinsurance 80% (Subject to deductible) Out-of-Network Non-Contracting 60% Deductible & coinsurance Deductible waived No annual limits 60% coinsurance $3,000 single / $6,000 family $5,000 single / $10,000 family $7,000 single / $14,000 family $10,000 single / $20,000 family $5,000 single / $10,000 family$10,000 single / $20,000 family

©2007 Regence BlueCross BlueShield of Utah 15 Your Guide to HSA Welcome. Employee Navigational Tools Scenario-based education tool & calculator for plan selection during open enrollment Scenario-based education tool & calculator for plan selection during open enrollment HSA Flash Tutorial HSA-trained customer service advocates HSA-trained customer service advocates 24-hour nurseline 24-hour nurseline Personal health coaches Personal health coaches Member Welcome Kit Guided tour takes employees through the set-up process and HSA resources Guided tour takes employees through the set-up process and HSA resources A community of Regence members A community of Regence members Ask-the-HSA Expert Ask-the-HSA Expert Podcasts, webinars and helpful articles Podcasts, webinars and helpful articles Personalized 1:1 Support myRegence.com

©2007 Regence BlueCross BlueShield of Utah 16 Administrative Support Enrollment Get Up & Running Fully supportive compliance testing Employee set-up instruction & support Welcome kit Education Inform Employees Educational materials Interactive decision-making tools & resources Supporting communication Ongoing Support The Day-to-Day Personalized employee support, navigation & online tools Regence provides full support at each step of the way to meet the needs of you and your employees

©2007 Regence BlueCross BlueShield of Utah 17 Banking Solution: HSA Bank

©2007 Regence BlueCross BlueShield of Utah 18 HSA Bank Banking Experience A national leader in health savings accounts with a high level of experience Provides both online and paper enrollment Website allows members to check account balance and transfer funds; integrates with MS Money or Quicken Debit card, checks, and manual reimbursement available Investment Options Employees can transfer funds easily between their health savings account and the brokerage Access to stocks, bonds, and over 11,000 mutual funds Employees can make trades online, over the phone, or through a broker

©2007 Regence BlueCross BlueShield of Utah 19 HSA Bank Rate Chart Service Description Rate or Charge Monthly Fee$3.25 (waived if balance is over $3,000) Set-up FeeNo charge Debit CardsNo charge InvestmentsSee terms and conditions

©2007 Regence BlueCross BlueShield of Utah 20 Banking Solution: Wells Fargo

©2007 Regence BlueCross BlueShield of Utah 21 Wells Fargo Bank Banking Experience Wells Fargo is one of the largest financial services institutions in the nation Paper enrollment only Website allows members to view account balance and download forms Funds are accessed through debit cards or manual reimbursement requests Investment Options 6 different investment options are available Options range from more conservative money market funds to a 100% equity option

©2007 Regence BlueCross BlueShield of Utah 22 Wells Fargo Rate Chart Service Description Rate or Charge Monthly Fee$3.75 (waived if balance is over $2,500) Set-up FeeNo charge Debit CardsNo charge InvestmentsNo charge

©2007 Regence BlueCross BlueShield of Utah 23 Regence HSA Healthplan Regence offers a full-service HSA solution, with: A robust benefit package that combines comprehensive preventive care and wellness programs with solid coverage A full suite of member tools and personalized support to facilitate navigation at every step of the way Full support to employers through open enrollment and beyond One-stop service for both health plan and financial services