Consumer Driven Health Plans

1. Consumer Driven Health Plans WSAC Employee Health Care Benefits Forum

2. Consumer Driven Health Plans • Number of employers offering some type of consumer driven health plan has increased dramatically • 36% of large employers offered and HRA or HSA in 2012* • Three main tax-advantaged accounts offered are: • Flexible Spending Account (FSA) • Health Reimbursement Account (HRA) • Health Savings Account (HSA) *2012 Mercer Survey of Employer-Sponsored Health Plans

3. Flexible Spending Account (FSA) Employer spend Employee • FSA fund Employee Qualified Medical Expenses IRC 213(d) Employer

4. Flexible Spending Account (FSA) • Employer-sponsored benefit program via Section 125 • Employer determines eligibility • Funded by employer and employee salary reductions • $2,500 maximum employee contribution • Use it or lose it rule

5. Health Reimbursement Account (HRA) Employer • HRA spend fund Qualified Medical Expenses IRC 213(d) Employer

6. Health Reimbursement Account (HRA) • Employer established account • Employer determines eligibility • Funded by employer • No maximum contribution • Generally does not carry-over (unless allowed by employer)

7. Health Savings Account (HSA) Employer spend • HSA Employee • QUALIFIED high-deductible plan(no other plans allowed) fund Qualified Medical Expenses IRC 213(d) Full Rollover Employee fund Employer

8. Health Savings Account (HSA) • Anyone can establish account • Only in conjunction with coverage under a high-deductible plan • Funded by employer and employee salary reductions • Maximum contributions for 2013 • $3,250 for individual • $6,450 for family • Funds roll over each year and account is portable

9. Overview

10. Further questions? Nancy Kokenge Area Vice President, Client Consultant Email: Nancy_Kokenge@ajg.com Phone: 509.901.1313 Jessica Haguewood Client Consultant Email: Jessica_Haguewood@ajg.com Phone: 509.838.5571