High Deductible Health Plans & Health Savings Account

1. High Deductible Health Plans & Health Savings Account

2. Today’sAgenda • Review of High Deductible Health Plan (HDHP) • What is an HSA & Who is eligible • Advantages of an HSA • How it works • Tools to help you with your decision making • Be an educated consumer

3. High Deductible Health Plan (HDHP)

4. Your Benefits - HDHP

5. Preventive Care Benefit Highlights

6. Prescription Drug Program • Retail (31/60/90) day supply Plan pays 100% after deductible • Mail Order (90-day supply) Plan pays 100% after deductible

7. Qualified High Deductible Health Plans Plan Highlights • 100% coverage on in-network preventive office visits; not subject to the deductible. • Deductible applies to ALL non-preventive medical services AND prescriptions. • Deductibles are aggregate. This applies to only those in a Family plan. One person or a combination of family members must meet the family deductible before benefits begin to pay. • Same access to doctors and hospitals that you have today • The Blue Cross network-negotiated discounted rate for all in-network medical services and prescription drugs is the member’s responsibility until the deductible is satisfied. • Reimbursement may be made from your Highmark HSA

8. What is an HSA? • A Health Savings Account, or HSA, is a tax-advantaged savings account that's available to people whose only health care coverage is provided through a qualified high-deductible health plan. • Since the deductible — or amount you must pay out of pocket before these plans begin to cover benefits — is high, establishing an HSA to self-fund your out-of-pocket care expenses may help you save money.

9. Who Is Eligible? Individuals covered under the High Deductible Health Plan: • Can NOT be covered by any other health plan that is not a qualified high- deductible plan • Can NOT be enrolled in Medicare • Can NOT be claimed as a dependent on another person’s tax return

10. THE BASICS ON HEALTH SAVINGS ACCOUNTS • It’s your money. You choose how to pay for care services. • It’s portable. It goes where you go, even if you change jobs. • Account funds roll over from year to year. • You can pay for an exceptional range of health care services and products. That includes services – such as dental and vision care – that may not be covered under your health plan. • You get “triple-tax savings.” HSA contributions and earnings are tax exempt as long as they are used for qualified medical services. • Once you reach a $500 account balance, you can invest in a wide range of mutual funds for short- or long-term growth potential. • It’s convenient. You access and track all of your health care spending online at your Highmark member website. • Your account is offered through a trusted industry leader, Bank of America, who serves as the custodian.

11. Preferred Custodian Review Let’s talk about the HSA Custodian… Bank of America • Highmark’s preferred Custodian • Advantages of choosing Bank of America: • Authorization of pre-tax payroll deductions into your account • Integration of CDHP and HSA • Investment opportunity for over 20 Mutual Fund options • Must reach a $500 balance in your account prior to purchasing funds • When an employee invests, the responsibility is solely on them.  Whether there are gains from the market or losses, it’s no different than someone investing on their own.  As the taxpayer, the HSA account holder is solely responsible for the money in their account and how it is used • Maintenance fee of $3.50 per month covers all transactions and debit card

12. Contributions & Distributions • Regulations determined & enforced by the Internal Revenue Service • Contributions • For 2013 contributions from all sources are limited to • $3,250 Single Coverage • $6,450 Family Coverage Catch-up contributions of $1,000 allowed for members over age 55 in 2013 • Distributions • Intended use is for “qualified medical expenses” as defined by section 213(d) of the Internal Revenue Code • Same ‘Qualified Medical Expenses’ List for a Flexible Spending Account • If money from the HSA is used for qualified medical expenses, then the money is spent tax-free • Unqualified distributions are subject to income tax and 20% penalty

13. Highmark HSAHow does it work?www.highmarkbcbs.com

14. Health Savings Account Options • Your Health Savings Account will be established automatically upon enrollment in the HDHP • Can be managed online through the Highmark Blue Cross Blue Shield website • Must go to website and accept terms and conditions • Different Methods of Contribution • Payroll Contribution • Personal Check • ACH Debit • Different Methods of Claims Submission • Debit Card • All HSA participants will receive a debit card tied to account • Additional cards can be requested for family members • Claim-by-Claim Authorization • Different Methods of Reimbursement • Debit Card • Direct Payment to Provider • Direct Deposit • Check to Member

15. Website Login and Registration • Enter User ID & Password in the Log In box, or • For new registrants click “Register Now” • New Registrants will receive a PIN to allow complete access • Getting started is easy!

16. To Open an HSA • Click on the link “Start a Health Savings Account and Save”

17. Please wait 7-10 business days for your HSA to be open Once your HSA is open you will automatically receive: 1) A Welcome Kit 2) A Debit Card

18. Tools & Resources

19. ONLINE TOOLS ENCOURAGING SMART CARE DECISIONS • Provider Search: Simplifies choosing the right provider • Patient Experience Review: Lets you rate your provider and review other opinions • Care Cost Estimator: Estimates the portion you may have to pay for services • Hospital Advisor: Helps you choose the right hospital based on national quality ratings • Mobile Site: Helps you find providers, view new claims, and can pull up your ID card Confidential and Proprietary

20. Provider Directory: Patient Experience Review See overall patient ratings based on five criteria: • Experience: Was it good or bad? • Recommendation: Would you recommend the doctor to family and friends? • Communication: Did you understand what the doctor said? • Availability: Was it hard to get an appointment? • Environment: What was the office like? Confidential and Proprietary

21. Care Cost Estimator Estimate the portion you could have to pay based on your cost sharing. 21 Confidential and Proprietary

22. Online HSA Savings Calculator Calculate how much you can save over time on a pre-tax basis

23. Additional Consumerism Tools & Resources • Expense Summary & View Your Claims • Plan Activity Statement • Wellness and Research Tools Through Partnership with WebMD® • Blues on Call • My Care Navigator

24. 5 Money Saving Actions • Choose generic drugs over brand name drugs. • You can save up to 6 times the cost of brand name drugs and get the same results • Go to Urgent Care Centers rather than the ER for common, non life threatening health concerns. • ER visits for common conditions like the flu, colds, rashes, or ankle sprains can be 2 to 3 times more expensive than urgent care centers. • Have typical blood tests performed at Independent Labs rather than hospitals • It possible to save up to 50% and most labs are quick and efficient and offer convenient hours, too. • Get X-rays and other imaging tests performed at an X-ray or Imaging Center rather than a hospital • On average, X-Rays, CT Scans and MRIs performed at most hospitals are up to 30 percent more expensive than those done at an imaging center. • When you have any medical tests performed, give the lab the contact information of your provider • You’ll be less likely to have tests repeated unnecessarily. On average, you can save between $83 to $105 on common lab tests and $ 1,100 and $1,800 on imaging tests.

25. Should You Choose the High Deductible Health Plan? • Determine the difference in your premium contribution for each health plan option • Compute potential tax savings from your HSA contributions • Calculate potential earnings from accumulated funds in your HSA • Review your out-of-pocket expenses and compare to the premium cost of each plan • Use the tools on the Highmark website to estimate your costs

26. Questions??