2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 1 Health Savings Account A New Medical

2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 1

Health Savings Account Health Savings Account

A New Medical Plan A New Medical Plan through Blue Shieldthrough Blue Shield

Presented by:Presented by:

Cassidy O’Hara (Broker)Cassidy O’Hara (Broker)


What is a Health Savings What is a Health Savings Account?Account?

In December of 2003, the Medicare Prescription Drug,Improvement & Modernization Act established a new

type oftax-favored Health Savings Account (HSA).

An HSA is owned by the individual, not an employer. An HSA is owned by the individual, not an employer. The individual decides:The individual decides: How much to contribute. How much to contribute. Whether to pay for medical expenses from the account or Whether to pay for medical expenses from the account or

save the account for future use.save the account for future use. Financial institution and type of investment.Financial institution and type of investment.

There are no “use it or lose it” rules.There are no “use it or lose it” rules. Accounts can grow through investment earnings.Accounts can grow through investment earnings. HSAs are completely portable.HSAs are completely portable.


Health Plan HighlightsHealth Plan Highlights

Blue Shield 90/70 PPO Blue Shield 90/70 PPO (in-network):(in-network): $10 co-pay for office visits, $250/$500 deductible, $10 co-pay for office visits, $250/$500 deductible,

90% coverage, $10/15/30 Rx 90% coverage, $10/15/30 Rx

Annual Maximum Out of Pocket = Annual Maximum Out of Pocket = $1,000 / $2,000 (Rx additional)$1,000 / $2,000 (Rx additional)

Blue Shield PPO 2250 Blue Shield PPO 2250 (in-network):(in-network): No insurance coverage until $2250 or $4500 deductible No insurance coverage until $2250 or $4500 deductible

is met.is met.

Annual Maximum Out of Pocket = Annual Maximum Out of Pocket = $3,000 / $5,500 (includes Rx)$3,000 / $5,500 (includes Rx)


2005 HSA Medical Plan2005 HSA Medical Plan

Blue Shield Health Savings Blue Shield Health Savings Account (HSA) Account (HSA)

In-NetworkIn-Network Out-NetworkOut-NetworkDeductibleDeductible $2,250/$4,500 $2,250/$4,500

$2,250/$4,500$2,250/$4,500

Office VisitOffice Visit 20% 20% 50% 50%

HospitalHospital 20% 20% 50% 50%

Labs & X-rayLabs & X-ray 20% 20% 50% 50%

PrescriptionsPrescriptions 20% 20% 50% 50%

Out of Pocket Max $3,000 member/ $3,000 Out of Pocket Max $3,000 member/ $3,000 member/member/

$5,500 family $5,500 family $5,500 family $5,500 family


New Employee Monthly Costs New Employee Monthly Costs Effective July 1Effective July 1stst 2005 2005

Plan ChoicesPlan ChoicesEmployee Employee

OnlyOnly

EmployeEmployee + e +

SpouseSpouse


Child(renChild(ren))


FamilyFamily

Blue Shield HMO/NMCOBlue Shield HMO/NMCO $65.00$65.00 $95.00$95.00 $95.00$95.00 $155.00$155.00

Blue Shield PPOBlue Shield PPO $90.00$90.00 $160.00$160.00 $160.00$160.00 $220.00$220.00

KaiserKaiser $55.00$55.00 $85.00$85.00 $85.00$85.00 $145.00$145.00

Guardian DentalGuardian Dental $10.00$10.00 $15.00$15.00 $15.00$15.00 $20.00$20.00

Guardian VisionGuardian Vision $5.00$5.00 $7.00$7.00 $7.00$7.00 $10.00$10.00

Blue Shield HSA Blue Shield HSA $0.00$0.00 $0.00$0.00 $0.00$0.00 $0.00$0.00

Agile will contribute to Agile will contribute to HSA HSA + $30.00+ $30.00 + $60.00+ $60.00 + $60.00+ $60.00

+ + $60.00$60.00


Single Coverage Claims Single Coverage Claims ScenariosScenarios

(if in-network)(if in-network)

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$500 Claim $2250 Claim $50,000+ Claim

PPO 250

PPO 2250

You Pay

Premium

Savings &

Agile

contribution to

HSA account

$1440


Family Coverage Claims Family Coverage Claims ScenariosScenarios

(if in-network)(if in-network)

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$500 Claim $4500 Claim $50,000+Claim

PPO 250

PPO 2250

You Pay

Premium Savings &

Agile contribution

to HSA account

$3360


HSA EligibilityHSA Eligibility

An eligible individual is one that:An eligible individual is one that:

Is covered by a high deductible health plan (HDHP)Is covered by a high deductible health plan (HDHP) Is not covered by other insurance excluding specific Is not covered by other insurance excluding specific

injury insurance and accident, disability, dental, injury insurance and accident, disability, dental, vision, or long-term carevision, or long-term care

Is not enrolled in MedicareIs not enrolled in Medicare Cannot be claimed as dependent on someone else’s Cannot be claimed as dependent on someone else’s

tax return.tax return.


HSA ContributionsHSA Contributions

Contributions to an HSA can be made by the Contributions to an HSA can be made by the employer or by the individual, or both.employer or by the individual, or both.

By the individual on the post-tax basis, it is an “above By the individual on the post-tax basis, it is an “above the-line” tax deduction.the-line” tax deduction.

Agile will make monthly contributions to HSA Bank.Agile will make monthly contributions to HSA Bank.

The maximum amount that can be contributed to The maximum amount that can be contributed to an HSA is:an HSA is:

Amount of the high deductible pro-rated to number of Amount of the high deductible pro-rated to number of months covered. 2005 = 6 months: $1125 Single & months covered. 2005 = 6 months: $1125 Single & $2250 Family$2250 Family

Company will be contributing $180 Single & $360 Family Company will be contributing $180 Single & $360 Family for 2005for 2005

Maximum employee contribution $945 Single & $1890 Maximum employee contribution $945 Single & $1890 Family for 2005Family for 2005

In 2006 maximum employee contribution $1890 Single In 2006 maximum employee contribution $1890 Single & $3780 Family& $3780 Family


Is the HSA Good for Me?Is the HSA Good for Me?

Members (Families) who will PAY $2,640 for PPO Members (Families) who will PAY $2,640 for PPO Health Insurance, will now RECEIVE $720 a year Health Insurance, will now RECEIVE $720 a year or a $3,360 positive swing.or a $3,360 positive swing.

That $3,360, if put into an H.S.A, can fund all expenses 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 against the $4500 deductible and can be rolled over if not usedused

Funds may be invested as CDs, money market fundsFunds may be invested as CDs, money market funds

Funds may be withdrawn tax-free to pay for qualified Health Funds may be withdrawn tax-free to pay for qualified Health Expenses per IRS codeExpenses per IRS code

Money Agile adds to H.S.A. not subject to federal taxesMoney Agile adds to H.S.A. not subject to federal taxes

Money employee adds to H.S.A is 100% deductible from their Money employee adds to H.S.A is 100% deductible from their federal income tax at year endfederal income tax at year end


Coverage Before HSA DepositCoverage Before HSA Deposit

SINGLE COVERAGE

FAMILY COVERAGE

OFFICE VISITS

PREVENTIVE

LAB / X-RAY

DME

PHYSICAL THERAPY

SURGERY

HOSPITAL

EMERGENCY

AMBULANCE

MATERNITY

CHIRO

RX

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%


100%

0% 100%80%


Coverage After HSA DepositCoverage After HSA Deposit

SINGLE COVERAGE

OFFICE VISITS

PREVENTIVE

LAB / X-RAY

DME

PHYSICAL THERAPY

SURGERY

HOSPITAL

EMERGENCY

AMBULANCE

MATERNITY

CHIRO

RX

Deposit $2250 in HSA

Account

Deposit $4500 in

HSA Account

Member pays up to

$750

Member pays up to

$1000


100%


100%

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


Qualified Medical Expenses Qualified Medical Expenses (Partial List) (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


Managing this programManaging this program

Accessing HSAAccessing HSAYou may use your debit card or checkbook provided by HSA You may use your debit card or checkbook provided by HSA

Bank to pay for any qualified medical expenses while Bank to pay for any qualified medical expenses while eligible. eligible.

Tax ReportingTax Reporting Must file 1040 and include IRS form 8889Must file 1040 and include IRS form 8889

(summary provided by HSA Bank)(summary provided by HSA Bank) 1099-HSA also needs to be filed if any distributions are 1099-HSA also needs to be filed if any distributions are

made (provided by HSA Bank)made (provided by HSA Bank)


Questions???Questions???

© COPYRIGHT 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL.

Thank you!Thank you!

Documents

2005 Heath Savings Account (HSA) Overview COPYRIGHT © 2005 AGILE SOFTWARE CORPORATION. COMPANY CONFIDENTIAL Slide 1 Health Savings Account A New Medical