Health Savings Account Qualified Plan What is it and how does it work?

2 What is a HSA? pre-tax A Health Savings Account Qualified Plan allows you to set aside your pre-tax income to pay for health related expenses.

3 HSA Features and Plan Design Plan Design DeductibleIn-Network Out-of-Network Individual $1,500$1,500 Family$3,000$3,000 You have the ability to set aside 100% of the Plan Deductible into your HSA.

4 HSA Features and Plan Design Plan Design Deductible DeductibleIn-NetworkOut-of-Network Individual $1,500$1,500 Family$3,000$3,000 Individuals can set aside $1,500 and $3,000 for a family in their HSA! Coinsurance Coinsurance20% after deductible30% after deductible Out of Pocket Max Out of Pocket Max* Individual$2,500$5,000 Family$5,000$10,000 * After deductible and copays You have the ability to set aside 100% of the Plan Deductible into your HSA.

5 What are the benefits? Tax Advantages – Tax Advantages – Contributions are pre-tax. Make Money – Make Money – Your account balance earns interest! HSAs are not “use or lose” – HSAs are not “use or lose” – your account balance can roll from year to year. Portability – Portability – If you leave your current job for any reason, your HSA can be used through you new employers health plan.

6 Example Are are in individual who has set aside the maximum $1,500 in your HSA. $5,000 Surgery and Hospital stay You have a $5,000 hospital charge that includes a surgical operation and a three day stay in an in-network hospital. You are responsible for: $5,000 Charge - $1,500 Pre-tax HSA $3,500 Balance x 20 % Coinsurance $ 700 Out of Pocket Total Out of Pocket: $2,200

7 How do I make informed consumer decisions? Your employer wants you to have the tools available to make smart, consumer-oriented health care decisions. One such tool is HSB HealthWatch, available as a link through the HSB website. As part of your plan, HSB HealthWatch gives you: an assessment and tracking of your health status personalized stage-based information medical self-care information daily health news

8 FAQ Q: How can I make my HSA last? Q: How can I make my HSA last? A: When buying a brand-name prescription, ask if a generic medication is available – there is a good chance that a less expensive generic alternative is available. Generics contain the same active ingredients as brand name counterparts and are subject to the same strict FDA quality standards. Also, ask yourself if a trip to the doctor’s office is necessary. Use the tools available like HSB HealthWatch, E-Doc or WebMD to self-diagnose health problems you may be experiencing. There are many OTC prescription strength medications available that are less expensive and more easily accessible than a doctor’s prescription.

9 FAQ (Continued) Q: If I don’t use my HSA this year, can it roll over to the following plan year? Q: If I don’t use my HSA this year, can it roll over to the following plan year? A: Yes, it’s your money! Unlike FSA dollars, any unused balance in your HSA will roll to the next plan year. Q: If I am no longer with my employer, is any unused balance in my HSA my money to keep? Q: If I am no longer with my employer, is any unused balance in my HSA my money to keep? A: Yes. If you choose to leave, are terminated, or retire, you can take your HSA with you. Complete portability is a great benefit to a Health Savings Account.