1. 0 Health Savings Accounts (HSA) May 2014

2. 1 What is a Health Savings Account? ©2013 WageWorks Inc. All rights reserved. It's a special savings account for people who have a qualified high deductible health plan (HDHP). The HSA allows you to save tax-free dollars to pay for IRS-qualified medical expenses the HDHP doesn't cover.

3. 2 Who Can Open an HSA? Must be: Enrolled in a qualified High Deductible Health Plan Not entitled to Medicare (entitled = eligible + enrolled) May not have coverage under another health plan or Healthcare FSA, (spouse’s plan) unless permitted coverage Not claimed as a dependent on someone else’s tax return ©2013 WageWorks Inc. All rights reserved.

4. 3 Eligible HSA Expenses ©2013 WageWorks Inc. All rights reserved. Medical office visits Prescription drugs Hospital fees Lab & x-ray fees Chiropractic care and acupuncture Vision care (eyeglasses, contacts, Lasik surgery Dental care Adult and child orthodontia Over-the-counter, non-prescription products and prescribed medications* Hearing aids To find out more, visit www.wageworks.com *Over-the-counter medicines require a prescription as of 1/1/2011

5. 4 HSA Pays for Dependents, too! Use HSA to pay for your eligible dependents’ health care expenses — even if they’re not enrolled in HDHP Eligible dependents include anyone you can legally claim as dependent on federal income tax form ©2013 WageWorks Inc. All rights reserved.

6. 5 Contributions to your HSA You decide how much to contribute and invest 2014 IRS Annual Maximum Contributions  $3,300 Individual  $6,550 Family Age 55 and older: Additional $1,000 “catch- up” contribution allowed Contribute pre-tax through DPS payroll deduction. ©2013 WageWorks Inc. All rights reserved.

7. 6 No hassle payment options WageWorks Health Care Card — just like debit card Pay My Provider — direct online payments Pay Me — direct transfers to your checking account or checks mailed to your home Pay Me Back — traditional reimbursement with claim forms and explanation of benefits forms (EOBs) ©2013 WageWorks Inc. All rights reserved.

8. 7 It’s Your Money. Period. HSA goes with you no matter where you go Don’t have to be enrolled in HDHP to withdraw money from HSA Can use HSA even when switch employers or retire ©2013 WageWorks Inc. All rights reserved.

9. 8 What Costs are Associated with the HSA? No account set-up fee or monthly service charge An HSA debit card is included at no cost. Spouse and dependent cards are also available at no cost All overdraft and investment fees associated with the HSA are the responsibility of the member Other costs that may apply are disclosed in communication pieces provided by HSA Bank in your welcome kit ©2013 WageWorks Inc. All rights reserved.

10. 9 Please take note! Withdrawals are tax-free for eligible healthcare expenses defined by IRS Code Sec.213(d) Expense must be incurred on or after date you established your HSA. Withdrawals for non-qualified expenses become income and subject to income taxes plus a 20% penalty. You will be required to file tax forms related to your HSA account. Tip! Make a file for your receipts and store them in a safe place. ©2013 WageWorks Inc. All rights reserved.

11. 10 Is a CDHP right for you? Consider CDHP and HSA if you:  Want to save hundreds or thousands of dollars a year on health care premiums  Want coverage for big expenses, but don’t want to pay for coverage you may never use  Want to set aside tax-free income now for future health care expenses  Want more control over how and when you spend your health care dollars ©2013 WageWorks Inc. All rights reserved.

12. 11 Questions ©2013 WageWorks Inc. All rights reserved.

13. 12 ©2013 WageWorks Inc. All rights reserved.