Taking the Heap to HDHPs Karen K. Sones, HR Strategic Project Director First Horizon National Corporation

Be Your Best The Evolution Enhanced HSA Contributions Prior to 2009 Multiple PPO plans 2011 HSA Contributions 2009 Introduced HDHP HDHP Participation

Be Your Best The Evolution - Details 3 Prior to 2009 Multiple PPO plans with deductibles Deductibles ranging from $250 to $1250 Introduced high deductible plan in 2009 $1500 deductible 10% enrollment in HDHP Added Employer HSA contributions in 2011 $1500 deductible Maximum $500 in employer HSA contributions 26% enrollment in HDHP Increased Employer HSA contributions in 2013 $1300 deductible Maximum $700 in employer HSA contributions 34% enrollment in HDHP

Be Your Best 2014 Plan Design 4 $1300 Plan$2000 Plan DeductibleOut of Pocket Max DeductibleOut of Pocket Max Single$1,300$4,500$2,000$6,000 Family$2,600$,9000$4,000$12,000 Employer HSA Contributions Base Pay $50,000 or less Non Tobacco User Health Risk Assessment Matching Total Annual Contribution Employee$150 $200 = $700 Employee +1 or Family $300 $200$400= $1200

Be Your Best Why Full Replacement HDHP? 5 Promotes wise health care choices Encourages financial planning Tax benefits when combined with HSA Lowers overall cost to employee/company Shares the cost more equitably Transparency changes behavior

Be Your Best 6 Road to Successful Transition Develop a foundation for change Address fear of change Offer choices Communicate candidly Consider transition support Engage employees as partners Teach ownership and accountability

Be Your Best Total Cost of Health Care Medical Claims Pharmacy Expenses Administrative Cost Total Cost For The Company: It’s a partnership Employee and their physician make decisions on most appropriate care while evaluating available options and costs AND Employer negotiates with health plan carriers and pharmacy vendors to obtain the highest possible network discounts Employer negotiates with health plan carriers and pharmacy vendors to receive the best possible pricing for administrative services Employee and Employer share the cost through premium payment 7

Be Your Best Total Cost of Health Care PremiumsDeductiblesCoinsurance Total Cost For Employee: Shared with Employer Pretax biweekly payroll deductions Includes preventive benefits at 100% without a deductible First $1300/$2600 incurred each calendar year for medical and/or pharmacy expenses Can use Company Provided HSA Contributions to help pay the deductible 20% of expenses incurred after the deductible is met Capped at out of pocket limit Can use Company Provided HSA Contributions to help pay the coinsurance PLANNING IS KEY This should be a part of your family’s budget 8

Be Your Best 9 Employee Education Topics Insurance 101 HDHP HSA Financial Preparedness Methods Online & Print Computer based training Meetings Team Meetings Family Meetings One on ones

Be Your Best 10 Questions me: