1. Myths of HSAs

2. HSAs are only for the healthy oNo significant difference exists between having an HDHP or a non-HDHP and reporting average to excellent health (96.2% v. 92.2%) Source: Consumer Benchmark Survey, 4/08 (Appendix A) o11% of HSA-eligible enrollees reported having a health status of poor or fair, compared to 12% of non-HSA account holders Source: CDHPs: Consumer Perspectives, 9/07 (Appendix B)

3. HSAs are only for the wealthy o66.3% of respondents had an annual household income of less than $85,000 Source: Consumer Benchmark Survey, 4/08 (Appendix A) o42% of HSA holders have incomes of less than $50,000 Source: U.S. Department of Treasury: Dramatic Growth of HSAs (Appendix C)

4. HSAs are only for the young oHSA Bank’s average accountholder age is 44 o50.2% of respondents were 45 years-old or older Source: Consumer Benchmark Survey, 4/08 (Appendix A) o46% of HSA accountholders are 40 years old or older within the individual market Source: January 2008 Census, AHIP, 4/08 (Appendix D)

5. People with HSAs are less likely to receive timely medical care oNo significant difference exists between respondents with an HDHP and those with a non-HDHP when deciding against a treatment due to cost oNo significant difference exists between respondents with an HDHP and those with a non-HDHP when deciding to delay a treatment due to cost Source: Consumer Benchmark Survey, 4/08 (Appendix A)

6. People with HSAs are less likely to receive timely medical care oPeople with HSAs are 30% more likely to get an annual exam compared to people with traditional plans oPeople with HSAs are 20% more likely to follow a treatment regimen than people with traditional plans oPeople with HSAs are 25% more likely to engage in healthy behaviors than people with traditional plans Source: Consumer-Directed Health Plan Report – Early Evidence is Promising, 6/05 (Appendix E)

7. People with HSAs are less likely to receive timely medical care oHSA eligible enrollees and non-CDHP members decided not to go to the doctor at the same rate (18%) oHSA eligible enrollees and non-CDHP members delayed going to the doctor or having a procedure at the same rate (17%) oHSA eligible enrollees and non-CDHP members delayed filling or did not fill a prescription at the same rate (15%) Source: CDHPs: Consumer Perspectives, 9/07 (Appendix B)

8. HSAs do nothing but shift costs from employers to employees oThe average cost per employee with HSA- based CDHPs is 14.5% lower than the average cost per employee with a PPO that has a deductible of $1000 or more oFor large employers, the average cost per employee with an HSA is 26.2% lower than the average cost per employee with a PPO Source: Mercer National Survey of Employer-Sponsored Health Plans, 11/07 (Appendix F)

9. CDHPs are not gaining traction with employers o47% of large employers offered a CDHP in 2008 Source: Business Insurance, May 26, 2008 (Appendix G) o72% of employers with 10 or more employees indicated they are very likely to offer a CDHP in 2008 Source: Mercer National Survey of Employer-Sponsored Health Plans, 11/07 (Appendix F) oThe employer’s average cost per employee for a CDHP is lower than the average cost per employee in an HMO (by 16.2%), PPO (by 18.8%), and POS (by 22.6%) Source: Mercer National Survey of Employer-Sponsored Health Plans, 11/07 (Appendix F)

10. Employees are very unhappy with CDHPs oCDHPs have a satisfaction rating of 85% as compared to 92% for other plans Source: Business Insurance, May 26, 2008 (Appendix G) oOf the 537 respondents that have an HDHP, 72.6% chose that plan over a traditional plan Source: Consumer Benchmark Survey, 4/08 (Appendix A)