Eric Northey Health Insurance Associates

1. Health Savings Accounts Eric NortheyHealth Insurance Associates FOR: Hurst-Euless-Bedford INDEPENDENT SCHOOL DISTRICT

2. Carrier Pays 100% $2K 80% Co-Ins 20% 80% Co-Ins $500 Deductible How TRS Health Plans Work ActiveCare 1 ActiveCare 2 ActiveCare 3 Lifetime Maximum Carrier Pays 100% Carrier Pays 100% Carrier Pays 100% Non-Routine $2K $2K 20% 80% Co-Ins 20% 80% Co-Ins $1K 20% $1K $1100 20% 80% Co-Ins $500 Except for Preventive Care: $500/yr/member Deductible Deductible Negotiated Rates Co-Pays Dr Rx Co-Pays $25/$35 Dr $20/$30 You Pay Entire Bill Subject to Ded & Co-Ins Routine $10/$15/$20 Rx $10/$15/$20 Eric Northey Health Insurance Associates

3. HDHP & HSA 2 Parts • HDHP • High Deductible Health Plan • TRS ActiveCare-1 Employee Only Qualifies • Min Deductible - $1,100 Individual • HSA • Health Savings Account • Like a Supercharged Medical IRA • Max Contributions for 2008 are: • $2,900 for Individuals ($5,800 for Families) • Better • All the benefits of an IRA Plus • Tax free current and future spending for qualified medical expenses Eric Northey Health Insurance Associates

4. Comparison Between HSA & PPO • Here is an example used by TRS to illustrate the different costs for the different plans (Page 30 of the enrollment guide). • Comparison between; • “TRS ActiveCare 1”, and • “TRS ActiveCare 3” Eric Northey Health Insurance Associates

5. Example 1: It’s the Flu ActiveCare 3 ActiveCare 1 • Event Cost • Co-Pay Dr = $20 • Co-Pay Rx = $10 • Negotiated Rate = $85 • N.R. Rx = $25 • Annualized Cost • Premium = $3,024 • Co-Pay (s) = $30 • Total = $3,054 • Premium = $492 • N.R. (s) = $110 • Total = $602 Savings = $2,452 Eric Northey Health Insurance Associates

6. How an HDHP & HSA Work Employee Pre-Tax PayrollDeduction Dr Office/ Hospital Premium Insurance Card HDHP • To obtain network discount • To determine remaining deductible • To apply charges to deductible HSA Optional Contribution $0 to Annual Maximum of $2,900 Ind* $5,800 Fam* HSA Debit Card • Pay for charges • qualified payments are tax free • Remaining balance remains in account * 2008 IRS Limits Eric Northey Health Insurance Associates

7. HSA Financial Institution UMB Bank, n.a. • Checkbook • Debit Card • Online Enrollment • Employer Contribution • Individual Contribution • Payroll Contribution • Interest Bearing Account • Individual Securities • Self Directed • Mutual Funds • Online Portal • Online Statements Eric Northey Health Insurance Associates

8. What can HSA’s be used for? Eric Northey Health Insurance Associates

9. Who Qualifies? • You have a qualified High Deductible Health Plan (HDHP) TRS ActiveCare 1 Employee Only • HEB ISD’s Current Enrollment (subject to change after the Spring and Fall Open enrollment) • Employee only - 191 employees • Employee & Dependents - 101 employees (spouse, child or family) • You have no other health coverage except what is permitted under Other health coverage. • You are not enrolled in Medicare. • You cannot be claimed as a dependent on someone else's tax return. Eric Northey Health Insurance Associates

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