20150506 Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 1 Introducing our new HDHP/HSA Program

20150506 Copyright © 2010–2015 Finity, Inc. All Rights Reserved.

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Introducing our newHDHP/HSA Program

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Today’s Presentation

• What is an HDHP/HSA program?• Why is the company offering an

HDHP/HSA program?• How do HDHP/HSA programs work?• How does my HSA work?• How do I get the most from my HDHP/HSA

program?• How do I enroll in my HDHP/HSA program?

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What is an HDHP/HSA?


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Your HDHP/HSA Program

• A qualified High Deductible Health Plan (HDHP) combined with a Health Savings Account (HSA)

• Created as part of the Medicare Modernization Act of 2003

• Part of the fast-growing Consumer-Directed Healthcare (CDH) trend


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Why is the company offeringan HDHP/HSA program?


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Rising Cost of Health InsuranceHDHPs May Have Lower Premium CostsSample difference in premium costs in 2014.

$4,949$6,212

$14,514

$17,204

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

HDHP Non-HDHP

Individual FamilyEstimated average annual premium of $4,949 for HDHP individual coverage and $14,514 for HDHP family coverage. vs. $6,212 for non-HDHP individual coverage and $17,204 for non-HDHP family coverage.

Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2014. Chart compiled by Finity Communications.


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Creating a Sustainable Healthcare Program

• Consumer-Directed Healthcare programs may be more sustainable

• CDH programs are designed to:• Provide lower premiums• Emphasize the importance of preventive care• Motivate healthy lifestyles• Encourage health consumerism


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How do HDHP/HSA programs work?

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HDHP + HSA + Wellness Program


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How Your HDHP/HSA Works


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HDHP/HSA Programs Provide Choice

• HSA dollars can be used to pay for any IRS-qualified medical expense

• Medical expenses must be primarily for the alleviation or prevention of a physical or mental illness

• Your HDHP provides details about which medical expenses will count toward your deductible

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How does my HDHP work?


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High Deductible Health Plan (HDHP)

• A health plan offered by your employer• HDHPs typically have higher deductibles and

lower premiums than traditional health insurance plans

• You pay for most healthcare costs until the deductible is reached


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Your High Deductible Health Plan (HDHP)

• Minimum annual deductible

• Maximum annual out-of-pocket

Coverage Type 2015 2016

Self-Only $1,300 $1,300

Family $2,600 $2,600

Coverage Type 2015 2016

Self-Only $6,450 $6,550

Family $12,900 $13,100


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Your High Deductible Health Plan (HDHP)

• After the deductible, the HDHP begins to pay for covered benefits

• Certain basic preventive care is covered before the deductible is reached

• Other features of your HDHP• Finding out more about your HDHP

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How does my HSA work?


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Your Health Savings Account (HSA)

• You must be enrolled in an HDHP to be eligible for a Health Savings Account

• An HSA is a tax-advantaged account that can be used to pay for IRS-qualified medical expenses

• No “use it or lose it” provisions• Your money is always yours• You can use funds for current or future medical

expenses


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HSA Benefits

• More employee control• Choice of healthcare services • Tax advantages• Money rolls over each year• Portability if you leave the company

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HSAs Put You in Control

• Higher deductible generally means

lower premium costs than traditional

health insurance plans• You can put money into your HSA to pay for

medical expenses before your deductible is reached

• Money you don’t use is yours and rolls over each year


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HSA Federal Tax Advantages

State taxes may vary.


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Your HSA Balance Rolls Over

• There are no “use it or lose it” provisions with an HSA

• Your HSA dollars roll over year after year


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HSAs Are Portable

• Your HSA goes with you if you change jobs• Money is immediately 100% yours• You can use money in your HSA to pay for COBRA


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How does the wellness program work?


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Wellness Resources

• Health Risk Assessment• Interactive wellness tools and

health trackers• In-depth education and information• Health management resources


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How do I make the most of my HDHP/HSA program?

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Making the Most of Your HDHP/HSA Program

• Maximize the preventive care benefits• Fund your HSA up to the annual limit• Use your HSA only for IRS-qualified

medical expenses• Become a conscious health consumer• Comparison-shop for high-value healthcare

services• Make healthy lifestyle choices


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Contribute the Maximum to Your HSA

• If you have HSA funds at the end of the year, you can use them for future medical expenses

• You can contribute up to the maximum even if it exceeds your HDHP deductible

Maximum Contribution Catch-Up Contribution

(55 and Up)Self-Only Family

2015 $3,350 $6,650 $1,000

2016 $3,350 $6,750 $1,000


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Become a Health Consumer

• Look for the best price on quality healthcare

• Compare name-brand and generic prices

• Adopt and maintain a healthy lifestyle


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HDHP/HSA Program Tips

• Use your HSA for medical expenses– Non-qualified expenses will be subject to current tax

and potential penalties

• Keeping records is important– For IRS purposes, keep receipts for at least three

years after using HSA funds to pay for a medical expense


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How do I enroll in myHDHP/HSA program?


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4 Simple Steps to Enroll in Your HDHP/HSA

• Step One– Begin by enrolling in your HDHP

• Step Two– Decide on your HSA contributions

• Step Three– Enroll in your HSA

• Step Four– Start saving for your future!


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You can join yourHDHP/HSA program today!

Documents

20150506 Copyright © 2010–2015 Finity, Inc. All Rights Reserved. 1 Introducing our new HDHP/HSA Program