1. Copyright 2010 First Horizon Msaver, Inc. AGENDA What is an HSA? Elements of Consumerism HSA Examples – Do the Math Resources Studies – HSAs are working! HSA Usage Trends Health Reform and CDHPs Connect with Eric on Linked In! www.linkedin.com/in/ericjohnson262 817-366-7536 EDJohnson@FirstHorizon.com

2. Copyright 2010 First Horizon Msaver, Inc. Do the Math!

3. Copyright 2010 First Horizon Msaver, Inc. Copay vs. HSA $3k deductible 100% Copay Plan $3k deductible 100% HDHP

4. Copyright 2010 First Horizon Msaver, Inc. Plan Design – No Copays $3,000 Deductible 100% coverage after deductible Dr: $30 Rx: $10 / $40 / $60 COPAY

5. Copyright 2010 First Horizon Msaver, Inc. Plan Design – No Copays $3,000 Deductible 100% coverage after deductible Dr: Negotiated rate / deduct. Rx: Negotiated rate / deduct. HSA $3,000 Deductible 100% coverage after deductible Dr: $30 Rx: $10 / $40 / $60 COPAY

6. Copyright 2010 First Horizon Msaver, Inc. Plan Design – No Copays $3,000 Deductible 100% coverage after deductible Dr: $30 Rx: $10 / $40 / $60 Monthly: $347 Yearly:$4,164 $3,000 Deductible 100% coverage after deductible Dr: Negotiated rate / deduct. Rx: Negotiated rate / deduct. Monthly: $297 Yearly:$3,564 COPAY HSA

7. Copyright 2010 First Horizon Msaver, Inc. Premium Savings – Put in HSA $3,000 Deductible 100% coverage after deductible Dr: $30 Rx: $10 / $40 / $60 Monthly: $347 Yearly:$4,164 $3,000 Deductible 100% coverage after deductible Dr: Negotiated rate / deduct. Rx: Negotiated rate / deduct. Monthly: $297 Yearly: $3,564 COPAY HSA $600/year

8. Copyright 2010 First Horizon Msaver, Inc. Whats the Risk? $3,000 Deductible Doctor copays Prescription copays (all paid with after tax dollars) COPAY

9. Copyright 2010 First Horizon Msaver, Inc. Whats the Risk? $3,000 Deductible Doctor copays Prescription copays (all paid with after tax dollars) $3,000 Deductible $600 deposited in HSA $2,400 Total Exposure (all paid with pre-tax dollars) COPAYHSA

10. Copyright 2010 First Horizon Msaver, Inc. Example 1 Low Utilizer

11. Copyright 2010 First Horizon Msaver, Inc. Low Utilizer Annual physical: $0 No other doctor visits or prescriptions No refund from insurance company COPAY

12. Copyright 2010 First Horizon Msaver, Inc. Low Utilizer Annual physical: $0 No other doctor visits or prescriptions $600 in HSA to use for dental, vision, or future medical expenses HSA Annual physical: $0 No other doctor visits or prescriptions No refund from insurance company COPAY

13. Copyright 2010 First Horizon Msaver, Inc. Qualified Medical Expenses Until 1/1/11

14. Copyright 2010 First Horizon Msaver, Inc. Great R.O.I. for Employers Employers will get their moneys worth Low Utilizers will appreciate their benefits Employees will be happier

15. Copyright 2010 First Horizon Msaver, Inc. The Winner and New Champion HSA COPAY HSA

16. Copyright 2010 First Horizon Msaver, Inc. Example 2 Medium Utilizer

17. Copyright 2010 First Horizon Msaver, Inc. Medium Utilizer Annual physical: $0 COPAY HSA

18. Copyright 2010 First Horizon Msaver, Inc. Medium Utilizer Annual physical: $0 2 sick visits:$60 COPAY

19. Copyright 2010 First Horizon Msaver, Inc. Medium Utilizer Annual physical: $0 2 sick visits:??? HSA Annual physical: $0 2 sick visits:$60 COPAY

20. Copyright 2010 First Horizon Msaver, Inc. Price Transparency Tools www.FirstHorizonMsaver.com

21. Copyright 2010 First Horizon Msaver, Inc. Price Transparency Tools Office Visit, Established Patient, Level 2 (zip code 76012) Minor problem requiring a limited exam and treatment – approximately 10 minutes with the doctor $70 Office Visit, Established Patient, Level 3 (zip code 76012) Moderate problem requiring counseling and treatment, may require coordination of care with other providers – approximately 15 minutes with the doctor $113

22. Copyright 2010 First Horizon Msaver, Inc. Medium Utilizer Annual physical: $0 2 sick visits:$60 Annual physical: $0 COPAYHSA 2 sick visits:$226

23. Copyright 2010 First Horizon Msaver, Inc. Medium Utilizer Annual physical: $0 2 sick visits:$60 Synthroid ($10)$120 Lipitor ($60)$720 COPAY

24. Copyright 2010 First Horizon Msaver, Inc. Medium Utilizer Annual physical: $0 2 sick visits:$60 Synthroid ($10)$120 Lipitor ($60)$720 COPAY Annual physical: $0 2 sick visits:$226 Synthroid Lipitor HSA ?

25. Copyright 2010 First Horizon Msaver, Inc. Price Transparency Tools www.FirstHorizonMsaver.com

26. Copyright 2010 First Horizon Msaver, Inc. Synthroid (100 MCG ) $26.09$20.35 $20.74 $22.83 $20.79 $18.24 MyFloridaRx.com Insurance Company

27. Copyright 2010 First Horizon Msaver, Inc. Lipitor (10 MG ) Not Listed $95.27 $97.41 $99.95 $96.59 $88.80 Insurance Company

28. Copyright 2010 First Horizon Msaver, Inc. Medium Utilizer Annual physical: $0 2 sick visits:$60 Synthroid ($10)$120 Lipitor ($60)$720 COPAY Annual physical: $0 2 sick visits:$226 Synthroid ($18)$216 Lipitor($89)$1,068 HSA

29. Copyright 2010 First Horizon Msaver, Inc. Medium Utilizer Annual physical: $0 2 sick visits:$60 Synthroid ($10)$120 Lipitor ($60)$720 Total$900 COPAY Annual physical: $0 2 sick visits:$226 Synthroid ($18)$216 Lipitor($89)$1,068 Total$1,510 HSA

30. Copyright 2010 First Horizon Msaver, Inc. Medium Utilizer Total: $900 COPAY Total: $1,510 minus HSA: $ 600 HSA

31. Copyright 2010 First Horizon Msaver, Inc. Medium Utilizer Total: $900 Total (after tax): $900 COPAY Total: $1,510 minus HSA: $ 600 Total: $ 910 HSA

32. Copyright 2010 First Horizon Msaver, Inc. Federal Income Tax Brackets 2010 Tax RateMost Single FilersMarried Couples Filing Jointly 10%Not over $8,375Not over $16,750 15%$8,375 – $34,000$16,750 – $68,000 25%$34,000 – $82,400$68,000 – $137,300 28%$82,400 – $171,850$137,300 – $209,250 33%$171,850 – $373,650$209,250 – $373,650 35%Over $373,650

33. Copyright 2010 First Horizon Msaver, Inc. Medium Utilizer Total: $900 COPAY Total: $1,510 minus HSA: $600 minus Tax Savings $378 (25%) HSA

34. Copyright 2010 First Horizon Msaver, Inc. FICA Tax Rate 2010 6.2% of first $106,800 1.45% with no limit 7.65% matched by employer TOTAL

35. Copyright 2010 First Horizon Msaver, Inc. Texas Sales Tax Holiday

36. Copyright 2010 First Horizon Msaver, Inc.

37. Medium Utilizer Total: $900 Total (after tax): $900 COPAY Total: $1,510 minus HSA: $600 minus Tax Savings $378 (25%) Total: $532 HSA

38. Copyright 2010 First Horizon Msaver, Inc. Medium Utilizer Total: $900 Total (after tax): $900 COPAY Total: $1,510 minus HSA: $600 minus Tax Savings $378 (25%) Total: $532 Savings vs. Copay: $368 HSA

39. Copyright 2010 First Horizon Msaver, Inc. Medium Utilizer Total: $900 Total (after tax): $900 Remaining Risk: $3,000 + addl copays COPAY Total: $1,510 minus HSA: $600 minus Tax Savings $378 (25%) Total: $532 Savings vs. Copay: $368 Remaining Risk: $1,490 HSA

40. Copyright 2010 First Horizon Msaver, Inc. The Winner and Still Champion HSA COPAY HSA

41. Copyright 2010 First Horizon Msaver, Inc. Example 3 High Utilizer

42. Copyright 2010 First Horizon Msaver, Inc. High Utilizer Annual physical: $0 COPAY

43. Copyright 2010 First Horizon Msaver, Inc. High Utilizer Annual physical: $0 4 sick visits: $120 COPAY

44. Copyright 2010 First Horizon Msaver, Inc. High Utilizer Annual physical: $0 4 sick visits: $120 1 Generic ($10) $120 1 Brand ($40) $480 1 Non-Form. ($60) $720 COPAY

45. Copyright 2010 First Horizon Msaver, Inc. High Utilizer Annual physical: $0 4 sick visits: $120 1 Generic ($10) $120 1 Brand ($40) $480 1 Non-Form. ($60) $720 1 Hospital Visit: $3,000 COPAY

46. Copyright 2010 First Horizon Msaver, Inc. High Utilizer Annual physical: $0 4 sick visits: $120 1 Generic ($10) $120 1 Brand ($40) $480 1 Non-Form. ($60) $720 1 Hospital Visit: $3,000 Total: $4,440 COPAY

47. Copyright 2010 First Horizon Msaver, Inc. High Utilizer Annual physical: $0 4 sick visits: $120 1 Generic ($10) $120 1 Brand ($40) $480 1 Non-Form. ($60) $720 1 Hospital Visit: $3,000 Total: $4,440 Deductible: $3,000 COPAYHSA

48. Copyright 2010 First Horizon Msaver, Inc. High Utilizer Total: $4,440 Deductible: $3000 minus HSA: $600 COPAY HSA

49. Copyright 2010 First Horizon Msaver, Inc. High Utilizer Total: $4,440 Deductible: $3000 minus HSA: $600 minus tax savings: $750 COPAY HSA

50. Copyright 2010 First Horizon Msaver, Inc. High Utilizer Total: $4,440 Total (after tax): $4,440 Deductible: $3,000 minus HSA: $600 minus tax savings: $750 Total (after tax): $1,650 COPAY HSA

51. Copyright 2010 First Horizon Msaver, Inc. High Utilizer Total: $4,440 Total (after tax): $4,440 Deductible: $3,000 minus HSA: $600 minus tax savings: $750 Total (after tax): $1,650 Savings: $2,790 COPAY HSA

52. Copyright 2010 First Horizon Msaver, Inc. High Utilizer Total: $4,440 Total (after tax): $4,440 Remaining Risk:Copays Deductible: $3,000 minus HSA: $600 minus tax savings: $750 Total (after tax): $1,650 Savings: $2,790 COPAY HSA

53. Copyright 2010 First Horizon Msaver, Inc. High Utilizer Annual physical: $0 6 sick visits: $180 2 Generic ($10) $240 2 Brand ($40) $960 2 Non-Form. ($60) $1,440 1 Hospital Visit: $3,000 Total: $5,820 COPAY

54. Copyright 2010 First Horizon Msaver, Inc. High Utilizer Total: $5,820 Total (after tax): $5,820 Deductible: $3,000 minus HSA: $600 minus tax savings: $750 Total (after tax): $1,650 Savings: $4,170 COPAY HSA

55. Copyright 2010 First Horizon Msaver, Inc. High Utilizer Total: $5,820 Total (after tax): $5,820 Remaining Risk:Copays Deductible: $3,000 minus HSA: $600 minus tax savings: $750 Total (after tax): $1,650 Savings: $4,170 Remaining Risk: $0 COPAY HSA

56. Copyright 2010 First Horizon Msaver, Inc. Knockout!

57. Copyright 2010 First Horizon Msaver, Inc. The Undisputed Champion HSA COPAY HSA

58. Copyright 2010 First Horizon Msaver, Inc. Dual Option Choice is an important part of consumerism At renewal, employees will do the selling