Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 1 Introducing our new HDHP/HSA Program

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. Today’s Presentation What is an HDHP/HSA program? Why is the company offering an HDHP/HSA program? How do HDHP/HSA programs work? How does my HSA work? How do I get the most from my HDHP/HSA program? How do I enroll in my HDHP/HSA program?

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. What is an HDHP/HSA?

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 4 Your HDHP/HSA Program A qualified High Deductible Health Plan (HDHP) combined with a Health Savings Account (HSA) Created as part of the Medicare Modernization Act of 2003 Part of the fast-growing Consumer-Directed Healthcare (CDH) trend

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 5 Why is the company offering an HDHP/HSA program?

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 6 Rising Cost of Health Insurance HDHPs May Have Lower Premium Costs Sample difference in premium costs in Estimated average annual premium of $4,949 for HDHP individual coverage and $14,514 for HDHP family coverage. vs. $6,212 for non-HDHP individual coverage and $17,204 for non-HDHP family coverage. Source: Kaiser/HRET Survey of Employer- Sponsored Health Benefits, Chart compiled by Finity Communications.

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 7 Creating a Sustainable Healthcare Program Consumer-Directed Healthcare programs may be more sustainable CDH programs are designed to: Provide lower premiums Emphasize the importance of preventive care Motivate healthy lifestyles Encourage health consumerism

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 8 How do HDHP/HSA programs work?

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. HDHP + HSA + Wellness Program HDHP/HSA Program Health Consumerism Healthy Lifestyle

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 10 How Your HDHP/HSA Works HSA HSA Funded by Employee &/or Employer Eligible Expenses Paid Out of HSA Before Deductible HDHP HDHP Premiums Paid by Employee &/or Employer Covered Expenses Paid by HDHP Benefits After Deductible Wellness Certain Preventive Care Covered Before the Deductible Wellness Program Offers Resources, Tools, and Information

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 11 HDHP/HSA Programs Provide Choice HSA dollars can be used to pay for any IRS- qualified medical expense Medical expenses must be primarily for the alleviation or prevention of a physical or mental illness Your HDHP provides details about which medical expenses will count toward your deductible

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. How does my HDHP work?

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 13 High Deductible Health Plan (HDHP) A health plan offered by your employer HDHPs typically have higher deductibles and lower premiums than traditional health insurance plans You pay for most healthcare costs until the deductible is reached

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 14 Your High Deductible Health Plan (HDHP) Minimum annual deductible Maximum annual out-of-pocket Coverage Type Self-Only$1,300 Family$2,600 Coverage Type Self-Only$6,450$6,550 Family$12,900$13,100

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 15 Your High Deductible Health Plan (HDHP) After the deductible, the HDHP begins to pay for covered benefits Certain basic preventive care is covered before the deductible is reached Other features of your HDHP Finding out more about your HDHP

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. How does my HSA work?

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 17 Your Health Savings Account (HSA) You must be enrolled in an HDHP to be eligible for a Health Savings Account An HSA is a tax-advantaged account that can be used to pay for IRS-qualified medical expenses No “use it or lose it” provisions Your money is always yours You can use funds for current or future medical expenses

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 18 HSA Benefits More employee control Choice of healthcare services Tax advantages Money rolls over each year Portability if you leave the company

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. HSAs Put You in Control Higher deductible generally means lower premium costs than traditional health insurance plans You can put money into your HSA to pay for medical expenses before your deductible is reached Money you don’t use is yours and rolls over each year

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 20 HSA Federal Tax Advantages Pre-Tax Contributions Tax-Free Withdrawals Tax-Free Growth State taxes may vary.

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 21 Your HSA Balance Rolls Over There are no “use it or lose it” provisions with an HSA Your HSA dollars roll over year after year

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 22 HSAs Are Portable Your HSA goes with you if you change jobs Money is immediately 100% yours You can use money in your HSA to pay for COBRA

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 23 How does the wellness program work?

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 24 Wellness Resources Health Risk Assessment Interactive wellness tools and health trackers In-depth education and information Health management resources

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 25 How do I make the most of my HDHP/HSA program?

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. Making the Most of Your HDHP/HSA Program Maximize the preventive care benefits Fund your HSA up to the annual limit Use your HSA only for IRS-qualified medical expenses Become a conscious health consumer Comparison-shop for high-value healthcare services Make healthy lifestyle choices

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 27 Contribute the Maximum to Your HSA If you have HSA funds at the end of the year, you can use them for future medical expenses You can contribute up to the maximum even if it exceeds your HDHP deductible Maximum Contribution Catch-Up Contribution (55 and Up) Self-OnlyFamily 2015$3,350$6,650$1, $3,350$6,750$1,000

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 28 Become a Health Consumer Look for the best price on quality healthcare Compare name-brand and generic prices Adopt and maintain a healthy lifestyle

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 29 HDHP/HSA Program Tips Use your HSA for medical expenses –Non-qualified expenses will be subject to current tax and potential penalties Keeping records is important –For IRS purposes, keep receipts for at least three years after using HSA funds to pay for a medical expense

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 30 How do I enroll in my HDHP/HSA program?

Copyright © 2010–2015 Finity, Inc. All Rights Reserved Simple Steps to Enroll in Your HDHP/HSA Step One –Begin by enrolling in your HDHP Step Two –Decide on your HSA contributions Step Three –Enroll in your HSA Step Four –Start saving for your future!

Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 32 You can join your HDHP/HSA program today!