High Deductible Health Plans & Health Savings Account

Today’s Agenda Review of High Deductible Health Plan (HDHP) What is an HSA & Who is eligible Advantages of an HSA How it works Tools to help you with your decision making Be an educated consumer

High Deductible Health Plan (HDHP)

Your Benefits - HDHP In-Network Out-of-Network Deductible $3,500 Individual $7,000 Family Payment Level 90% after deductible 80% after deductible Out-of-Pocket Limit $1,400 Individual $2,800 Family $2,800 Individual $5,600 Family Lifetime Maximum Unlimited Primary Care Physician Specialist Emergency Room/Urgent Care

Preventive Care Benefit Highlights In-Network ( Preventive Visits (adult & pediatric) 100% Deductible does not apply Pediatric Immunizations Routine Gynecological Exam Routine Mammograms Preventive Diagnostic Screening

Prescription Drug Program Retail (31/60/90) day supply Plan pays 100% after deductible Mail Order (90-day supply)

Qualified High Deductible Health Plans Plan Highlights 100% coverage on in-network preventive office visits; not subject to the deductible. Deductible applies to ALL non-preventive medical services AND prescriptions. Deductibles are aggregate. This applies to only those in a Family plan. One person or a combination of family members must meet the family deductible before benefits begin to pay. Same access to doctors and hospitals that you have today The Blue Cross network-negotiated discounted rate for all in-network medical services and prescription drugs is the member’s responsibility until the deductible is satisfied. Reimbursement may be made from your Highmark HSA Talking Points: Deductible includes both medical and Rx expenses Family deductible administered as true “aggregate” deductible No embedded “individual” deductible exists in this plan design

What is an HSA? A Health Savings Account, or HSA, is a tax-advantaged savings account that's available to people whose only health care coverage is provided through a qualified high-deductible health plan. Since the deductible — or amount you must pay out of pocket before these plans begin to cover benefits — is high, establishing an HSA to self-fund your out-of-pocket care expenses may help you save money.

Who Is Eligible? Individuals covered under the High Deductible Health Plan: Can NOT be covered by any other health plan that is not a qualified high- deductible plan Can NOT be enrolled in Medicare Can NOT be claimed as a dependent on another person’s tax return

THE BASICS ON HEALTH SAVINGS ACCOUNTS It’s your money. You choose how to pay for care services. It’s portable. It goes where you go, even if you change jobs. Account funds roll over from year to year. You can pay for an exceptional range of health care services and products. That includes services – such as dental and vision care – that may not be covered under your health plan. You get “triple-tax savings.” HSA contributions and earnings are tax exempt as long as they are used for qualified medical services. Once you reach a $500 account balance, you can invest in a wide range of mutual funds for short- or long-term growth potential. It’s convenient. You access and track all of your health care spending online at your Highmark member website. Your account is offered through a trusted industry leader, Bank of America, who serves as the custodian.

Preferred Custodian Review Let’s talk about the HSA Custodian… Bank of America Highmark’s preferred Custodian Advantages of choosing Bank of America: Authorization of pre-tax payroll deductions into your account Integration of CDHP and HSA Investment opportunity for over 20 Mutual Fund options Must reach a $500 balance in your account prior to purchasing funds When an employee invests, the responsibility is solely on them.  Whether there are gains from the market or losses, it’s no different than someone investing on their own.  As the taxpayer, the HSA account holder is solely responsible for the money in their account and how it is used Maintenance fee of $3.50 per month covers all transactions and debit card

Contributions & Distributions Regulations determined & enforced by the Internal Revenue Service Contributions For 2013 contributions from all sources are limited to $3,250 Single Coverage $6,450 Family Coverage Catch-up contributions of $1,000 allowed for members over age 55 in 2013 Distributions Intended use is for “qualified medical expenses” as defined by section 213(d) of the Internal Revenue Code Same ‘Qualified Medical Expenses’ List for a Flexible Spending Account If money from the HSA is used for qualified medical expenses, then the money is spent tax-free Unqualified distributions are subject to income tax and 20% penalty

Highmark HSA How does it work? www.highmarkbcbs.com

Health Savings Account Options Your Health Savings Account will be established automatically upon enrollment in the HDHP Can be managed online through the Highmark Blue Cross Blue Shield website Must go to website and accept terms and conditions Different Methods of Contribution Payroll Contribution Personal Check ACH Debit Different Methods of Claims Submission Debit Card All HSA participants will receive a debit card tied to account Additional cards can be requested for family members Claim-by-Claim Authorization Different Methods of Reimbursement Direct Payment to Provider Direct Deposit Check to Member

Website Login and Registration Enter User ID & Password in the Log In box, or For new registrants click “Register Now” New Registrants will receive a PIN to allow complete access Getting started is easy!

To Open an HSA Click on the link “Start a Health Savings Account and Save”

Please wait 7-10 business days for your HSA to be open Once your HSA is open you will automatically receive: 1) A Welcome Kit 2) A Debit Card

Tools & Resources

ONLINE TOOLS ENCOURAGING SMART CARE DECISIONS Provider Search: Simplifies choosing the right provider Care Cost Estimator: Estimates the portion you may have to pay for services Patient Experience Review: Lets you rate your provider and review other opinions Hospital Advisor: Helps you choose the right hospital based on national quality ratings Mobile Site: Helps you find providers, view new claims, and can pull up your ID card Our tools include a Provider Search with Patient Experience Review… …Hospital Advisor, which helps members understand the quality ratings available for hospitals… …A new online Member Health Statement… …A Compare Care Costs tool and an Out-of-Pocket Cost Estimator… …And they’re all easy to access, located right on your member website. Confidential and Proprietary

See overall patient ratings based on five criteria: Provider Directory: Patient Experience Review See overall patient ratings based on five criteria: Experience: Was it good or bad? Recommendation: Would you recommend the doctor to family and friends? Communication: Did you understand what the doctor said? Availability: Was it hard to get an appointment? Environment: What was the office like? Members can see ratings based on five criteria... How was the experience? Would you recommend the doctor, physical therapist, occupational therapist, nurse practitioner or other provider? Did you understand what he or she said? How hard was it to get an appointment? And what was the office like? Confidential and Proprietary

Confidential and Proprietary Care Cost Estimator Estimate the portion you could have to pay based on your cost sharing. The Out-of-Pocket Cost Estimator will let members see roughly how much they’ll owe for the selected procedures, based on their specific cost-sharing plan. 21 Confidential and Proprietary 21

Online HSA Savings Calculator Calculate how much you can save over time on a pre-tax basis

Additional Consumerism Tools & Resources Expense Summary & View Your Claims Plan Activity Statement Wellness and Research Tools Through Partnership with WebMD® Blues on Call My Care Navigator

5 Money Saving Actions Choose generic drugs over brand name drugs. You can save up to 6 times the cost of brand name drugs and get the same results Go to Urgent Care Centers rather than the ER for common, non life threatening health concerns. ER visits for common conditions like the flu, colds, rashes, or ankle sprains can be 2 to 3 times more expensive than urgent care centers. Have typical blood tests performed at Independent Labs rather than hospitals It possible to save up to 50% and most labs are quick and efficient and offer convenient hours, too. Get X-rays and other imaging tests performed at an X-ray or Imaging Center rather than a hospital On average, X-Rays, CT Scans and MRIs performed at most hospitals are up to 30 percent more expensive than those done at an imaging center. When you have any medical tests performed, give the lab the contact information of your provider You’ll be less likely to have tests repeated unnecessarily. On average, you can save between $83 to $105 on common lab tests and $ 1,100 and $1,800 on imaging tests.

Should You Choose the High Deductible Health Plan? Determine the difference in your premium contribution for each health plan option Compute potential tax savings from your HSA contributions Calculate potential earnings from accumulated funds in your HSA Review your out-of-pocket expenses and compare to the premium cost of each plan Use the tools on the Highmark website to estimate your costs

Questions??