1. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 1 Health Savings Account A New Medical Plan through Blue Shield Presented by: Cassidy O’Hara (Broker)

2. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 2 What is a Health Savings Account? In December of 2003, the Medicare Prescription Drug, Improvement & Modernization Act established a new type of tax-favored Health Savings Account (HSA). An HSA is owned by the individual, not an employer. The individual decides:  How much to contribute.  Whether to pay for medical expenses from the account or save the account for future use.  Financial institution and type of investment.  There are no “use it or lose it” rules.  Accounts can grow through investment earnings.  HSAs are completely portable.

3. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 3 Health Plan Highlights  Blue Shield 90/70 PPO (in-network): $10 co-pay for office visits, $250/$500 deductible, 90% coverage, $10/15/30 Rx Annual Maximum Out of Pocket = $1,000 / $2,000 (Rx additional)  Blue Shield PPO 2250 (in-network): No insurance coverage until $2250 or $4500 deductible is met. Annual Maximum Out of Pocket = $3,000 / $5,500 (includes Rx)

4. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 4 2005 HSA Medical Plan Blue Shield Health Savings Account (HSA) In-NetworkOut-Network Deductible $2,250/$4,500 $2,250/$4,500 Office Visit 20% 50% Hospital 20% 50% Labs & X-ray 20% 50% Prescriptions 20% 50% Out of Pocket Max $3,000 member/ $3,000 member/ $5,500 family $5,500 family $5,500 family $5,500 family

5. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 5 New Employee Monthly Costs Effective July 1 st 2005 Plan Choices Employee Only Employee + Spouse Employee + Child(ren) Employee + Family Blue Shield HMO/NMCO $65.00$95.00$95.00$155.00 Blue Shield PPO $90.00$160.00$160.00$220.00 Kaiser$55.00$85.00$85.00$145.00 Guardian Dental $10.00$15.00$15.00$20.00 Guardian Vision $5.00$7.00$7.00$10.00 Blue Shield HSA $0.00$0.00$0.00$0.00 Agile will contribute to HSA + $30.00 + $60.00

6. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 6 Single Coverage Claims Scenarios (if in-network)

7. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 7 Family Coverage Claims Scenarios (if in-network) Premium Savings & Agile contribution to HSA account $3360

8. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 8 HSA Eligibility An eligible individual is one that:  Is covered by a high deductible health plan (HDHP)  Is not covered by other insurance excluding specific injury insurance and accident, disability, dental, vision, or long- term care  Is not enrolled in Medicare  Cannot be claimed as dependent on someone else’s tax return.

9. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 9 HSA Contributions Contributions to an HSA can be made by the employer or by the individual, or both.  By the individual on the post-tax basis, it is an “above the-line” tax deduction.  Agile will make monthly contributions to HSA Bank. The maximum amount that can be contributed to an HSA is:  Amount of the high deductible pro-rated to number of months covered. 2005 = 6 months: $1125 Single & $2250 Family  Company will be contributing $180 Single & $360 Family for 2005  Maximum employee contribution $945 Single & $1890 Family for 2005  In 2006 maximum employee contribution $1890 Single & $3780 Family

10. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 10 Is the HSA Good for Me? Members (Families) who will PAY $2,640 for PPO Health Insurance, will now RECEIVE $720 a year or a $3,360 positive swing.  That $3,360, if put into an H.S.A, can fund all expenses against the $4500 deductible and can be rolled over if not used  Funds may be invested as CDs, money market funds  Funds may be withdrawn tax-free to pay for qualified Health Expenses per IRS code  Money Agile adds to H.S.A. not subject to federal taxes  Money employee adds to H.S.A is 100% deductible from their federal income tax at year end

11. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 11 Coverage Before HSA Deposit SINGLE COVERAGE FAMILY COVERAGE Member pays the first $2250 Member pays the first $4500 Member pays up to $750 Member pays up to $1000 Blue Shield now pays 100% 0% 100%80%

12. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 12 Coverage After HSA Deposit SINGLE COVERAGE Deposit $2250 in HSA Account Deposit $4500 in HSA Account Member pays up to $750 Member pays up to $1000 Blue Shield now pays 100% 100% 80% Claims may be incurred before the build up of funds in your HSA. You may reimburse yourself for medical expenses you paid early in the year before you had built up your HSA. FAMILY COVERAGE

13. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 13 Qualified Medical Expenses (Partial List) -Acupuncture -Chiropractor -Dental -Prescription Drugs -Eyeglasses -Braces -Laser Eye Surgery -Hearing Aids -Hospital Bills -Physician Office Visits -Laboratory & Testing-Contact Lenses-Psychiatric Care -Immunizations -Postnatal Care -Prenatal Care -Drug & Alcohol Treatment -Therapy Equipment -Medical Equipment -Sterilization -Nursing -LTC Premiums -Hydrotherapy -Guide Dog -Arch Supports -Artificial Limbs -Vasectomy -Contraceptives -Ambulance -Dermatologist -Physical Therapy -Oxygen

14. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 14 Managing this program  Accessing HSA You may use your debit card or checkbook provided by HSA Bank to pay for any qualified medical expenses while eligible.  Tax Reporting  Must file 1040 and include IRS form 8889 (summary provided by HSA Bank)  1099-HSA also needs to be filed if any distributions are made (provided by HSA Bank)

15. 2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 15 Questions???

16. © COPYRIGHT 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL. Thank you!