WELCOME Health Savings Account (HSA) Basics. THE BASICS.

WELCOME

Health Savings Account (HSA) Basics

THE BASICS

Copyright © 2011 HealthEquity, Inc. All rights reserved. HealthEquity and the HealthEquity logo are registered trademarks and service marks of HealthEquity, Inc.Confidential and proprietary. Reproduction without express written consent is prohibited.

TRADITIONAL VS HSA PLAN


HSA COMPONENTS

Insurance Company

BCBS ArizonaFinancial Custodian

HealthEquity

HSA WITH QUALIFIED HIGH-DEDUCTIBLE PLAN

HDHPLow-Premium, High-Deductible Health Plan

THE INSURANCE PIECE

HSAHealth Savings Account

THE ACCOUNT USED TO FUND THE DEDUCTIBLE—TAX-FREE


WHAT’S AN HSA?

• Savings account that you own and:– Can use to pay for qualified medical expenses– Earn interest on– Can invest when a certain threshold is met

Qualified Medical Expense

Your HSA You and/orEmployer Contribute


AM I ELIGIBLE?

To qualify for an HSA, an individual:• Must be covered by a qualified high-

deductible health plan (HDHP)

– Must be 18 years or older

– Can’t be enrolled in Medicare

– Can’t be claimed as a dependent on someone else's tax return

– Can’t have other health coverage, unless permitted by the IRS (i.e.TRICARE, DoD, FSA)


CONTRIBUTE TO YOUR HSA

• For 2011, the maximum tax-free contributions the IRS allows you to make to your HSA are:

– Single-coverage $3,050

– Family-coverage $6,150

– Catch-up contribution, age 55 or older $1,000

• You can fully fund your HSA on day one, subject to the annual maximum amount.

• You can make contributions anytime after your HSA is open.

• Deposits can be made pre-tax through payroll deduction, online, or sent to HealthEquity.

WHY AN HSA?


• Save (and keep) your money

– Lower premiums, tax-free, long-term savings

– You own the account and the money stays with you

• Grow your money

– Money rolls over year to year

• Access the best tax-savings opportunity available

– Contributions aren’t taxed and reduce your annual taxable income

– Withdrawals are never taxed or penalized when used for qualified medical expenses; including Rx, dental, vision

– Earnings aren’t taxed

BENEFITS OF AN HSA


• Keep your doctor

– Even if your doctor isn’t a network provider, you can use your HSA to pay your bill

• Protect your account and your pocket book

– Change jobs or retire and keep your account and balance

– Most HSA-qualified plans have maximum out-of-pocket limits• Reach your limit, and expenses are fully covered.• Before you reach your limit, use your HSA balance to pay costs.

– Can cover spouse/dependent expenses, even if on another health plan• Your spouse and dependents don’t need to be covered by the HDHP

to use your HSA funds to pay their out-of-pocket medical expenses.

BENEFITS OF AN HSAContinued


QUESTIONS TO ASK YOURSELF

• How much do I pay out of my paycheck for each plan?

• What is the deductible for each plan type?

• What is the out-of-pocket maximum for each plan?

• How much do I want to contribute to my HSA?

• How much will I spend on health care this coming year?

• What are my out-of-pocket costs for each plan type?

WHY A HEALTHEQUITY® HSA?


BENEFITS OF A HEALTHEQUITY® HSA

1. Easy-to-use online access to claims and payments• Integrates with 40+ national health plans• Enroll in HSA and health plan, access claims, pay bills/get

reimbursements from a single online portal

2. Live service any day, anytime• Live Member Services specialists available 24/7/365


BENEFITS OF A HEALTHEQUITY® HSA

3. Remarkable education and support• Help negotiating payment schedules with a provider

• Safe, effective ways to save on health care costs

• Average costs for your ZIP code

• Tax tips about HSAs—for now and the future

4. Plus:• FDIC-insured cash deposits

• No setup or inactivity fees

• Competitive interest rates

• Free investment options with no transaction fees—something most banks don’t offer

MEMBER EXPERIENCE


MEMBER EXPERIENCE

HealthEquity Receives Enrollment

Welcome Kit and Debit Card

First Login to Web Portal

Account Screeningand Set Up

01001010010110

Open Enrollment Meetings and Communications

Ongoing Interactions

Ongoing60–90 days prior

Enrollment

40 days prior 20 days prior 17 Days prior 15 days prior Plan Yr. Begins


MEMBER PORTAL WEB TUTORIALSwww.healthequity.com/tutorials


MEMBER PORTAL: Log On at www.myhealthequity.com


HSA HOW TO:Doctor Visits

Go to the doctor

Doctor sends insurance company the bill

Provider sends bill to employee

No co-pays

Insurance carrier adjusts price based on discounts

Employee pays the provider with HealthEquity® Visa® Health Account Card*

*This card is issued by The Bancorp Bank pursuant to a license from Visa U.S.A. Inc. The Bancorp Bank; Member FDIC.


HSA HOW TO:Pharmacy Prescriptions

Go to pharmacy

Pharmacy applies discount

Pharmacy sends claim to insurance company

Show medical ID card

Pay with HSA card

Insurance company applies amount to your deductible–no paperwork needed


10 FREQUENTLY-ASKED QUESTIONS

1. How do I contribute to my HSA? Payroll deduction for pre-tax contributions. For post-tax, call HealthEquity, go online and set up EFT, or send a check with form.

2. How do I find out my account balance?Go online or call HealthEquity.

3. How do I use my HSA to pay for my prescriptions?Simply swipe your HSA Visa card at the pharmacy.

4. I forgot to pay for a prescription with my HSA card, how do I get reimbursed?Go online to set up EFT to reimburse yourself or call HealthEquity.

5. Where can I use my HSA card?Run it like a credit card at your pharmacy or medical office.


6. Can I get a card for my spouse?Yes. Just let HealthEquity know when you activate your card.

7. Will I receive a statement for my account?Yes, monthly.

8. Is my HSA FDIC insured?Yes. (Funds you choose to invest are not).

9. Does the money I have in my HSA roll over from year to year or do I lose the money at the end of the year?The money rolls over year to year. You don’t lose the money in your HSA. It’s your money. And you earn interest on it!

10. Do I pay for the full doctor’s office visit when I go to the doctor?Some doctors require you pay upfront; most will bill you later. Remember, you’re only responsible to pay the discounted amount determined by your insurance benefit. Don’t let the doctor overcharge you at the point of service.

10 FREQUENTLY-ASKED QUESTIONS


MEMBER SERVICES

HealthEquity Member Services is open all day, everyday, 24/7/365

866.346.5800• Understand and manage the financial side of health care

• Save and spend health care dollars more wisely

• Build equity in your health plan

Any Questions?

YOUR QUESTIONS?

Thank You

WELCOME Health Savings Account (HSA) Basics. THE BASICS.

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