2013/14 Plan Options

1. 2013/14 Plan Options Dual Choice

2. Statewide, Nationwide, and Around the World • Blue Plans represents the nation’s largest and most experienced health care benefit companies. • Blue Plans cover 100 million people—nearly one-third of all Americans—inall 50 states, the District of Columbia and Puerto Rico. • Blue Cross and Blue Shield of Nebraska insures or provides benefit administration for more than 700,000 people. Members have access to: 92% Physicians 96% Hospitals BLUE CROSS AND BLUE SHIELD OF NEBRASKA

3. Introductions Kent Trelford-Thompson Manger Government and Association Business Sue Warner Senior Regional Representative (Northern Nebraska) Tara Stevenson Senior Regional Representative (Southern Nebraska)

4. Definitions of Acronyms • EHA – Educators Health Alliance • HDHP - High Deductible Health Plan • HSA – Health Savings Account • FSA – Flexible Spending Account • BCBSNE – Blue Cross and Blue Shield of Nebraska • HSA Administrator – Bank that holds HSA funds

5. Agenda • Dual Choice Plan Options • What are Health Savings Accounts • How can I utilize my Health Savings Account • Plan Comparison

6. $750 Deductible PPO Deductible: $750 Employee only or $1,500 Family Coinsurance: 80% / 20% $2,250 Employee only or $4,500 Family Office Visit Copay: $30 per visit PCP $50 per visit Specialist Routine Care Benefits: Routine Care Benefits are payable under Federal Health Care Reform. Benefits are subject Age, Gender and Frequency limitations. Pharmacy Benefits: Generic – 25% coinsurance ($5 Min $25 Max) Formulary Brand Name – 25% Coinsurance ($30 Min $60Max) Non-Formulary Brand Name – 50% coinsurance ($60 Min $90 Max)

7. $3,100 High Deductible Health Plan Deductible: $3,100 Employee Only or $6,200 Family Coinsurance: 100% / 0% $0 Employee Only or $0 Family Office Visit Copay: Office visits applied to Deductible Routine Care Benefits: Routine Care Benefits are payable under Federal Health Care Reform. Benefits are subject to Age, Gender and Frequency limitations. Pharmacy Benefits: All pharmacy benefits are applied to Deductible Note: Any coverage other than Employee Only the entire family deductible must be reached prior to benefits being paid at 100%

8. Health Savings Account A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high deductible health plan (HDHP). The funds contributed to an account are not subject to federal income tax at the time of deposit. HSA’s are owned by the individual and funds may be used to pay for qualified medical expenses.

9. Benefits of an HSA • You see the true cost of medical care and have better control over how your dollars are spent. • Funds roll over from year to year. • There is no “use it” or “lose it”. • Funds belong to you – regardless.

10. Who Can Open a Health Savings Account? • Age Requirement : 18 or older • Must be enrolled in a qualifying High Deductible Health Plan • Cannot be covered by any non-qualified HDHP Health Insurance • Cannot be enrolled in Medicare • Cannot be claimed as a dependent on another individual's tax return

11. 2014 HSA Contributions Maximum annual contribution amount for 2014 is: $3,300 Individual Coverage $6,550 Family Coverage 2014 Catch-up Contributions for HSA owner's ages 55+ $1,000 for 2009 and thereafter ***if the account owner has a spouse who is covered under the HDHP, and they are 55+ they qualify to make the catch-up contribution – this contribution would need to be into their own account.

12. HSA Distributions • Distributions for qualified medical, dental or vision expenses are not taxed. • Non-qualified expenses are taxable as ordinary income plus an additional 20% penalty. • Distributions for non-qualified expenses taken after age 65 are taxed at current tax rate and are not subject to the 20% penalty.

13. What Medical Expenses Qualify? • Prescriptions and qualified deductible expenses • Qualified long-term care services and a percentage of long term care insurance premiums • COBRA premiums • Health insurance for those on unemployment compensation • Eye Exams • Dental Exams

14. Advantages of HSAs • Triple Tax Savings • Tax deductions when you contribute to your account • Tax-free earning through investments/interest • Tax-free withdrawals for qualified medical expenses • Portability-accounts are completely portable if you : • Change your medical coverage • Move to another State • Change your marital status

15. Rate Comparison (Medical Rates Only)

16. Example of Out-of-Pocket Cost

17. Total Cost Comparison

18. Total Cost Comparison (2)

19. Questions Thank you