Andrews University

1. Andrews University Employee Benefits Plan Year 2005/2006 February, 2005

2. *Deductible Applies ** Note: Andrews HSA Bank contributions per month are as follows: Employee Only: $50 Employee + 1: $100 Employee + 2 or more: $100

3. What is a HDHP/HSA? • High Deductible Health Plan • A healthcare plan meeting IRS plan design requirements • All benefits subject to the deductible with the exception of wellness benefits • HSA Healthcare Savings Account • Eligibility • Can not be enrolled in Medicare • Can not be covered under another group health plan • An account owned by the employee • Can be funded with employer and employee funds on a pre-tax basis • Balance rolls over year after year (portable) • May accrue interest • Withdrawals must be for qualified medical expenses

4. Sample Claim Illustration

5. Sample Claim Illustration

6. Andrews University – 2005 Health Comparison Costs

7. Wellness Incentives • Employees can help reduce plan costs by staying healthy • The plan is considering financial incentives for participating in the Health Fair • Incentives will be reductions to employee contributions • Amount of incentive is currently under review

8. Andrews University • Bank selection • March, 2005 • Employee “town hall” meetings • March, 2005 • Detailed plan review (3 benefit summaries will be provided) • Plan Option Pricing

9. Andrews University • April, 2005 - Enrollment packet will be mailed to employees and will include: • Medical plan summaries • Medical plan pricing • Enrollment form • HSA set-up forms • Flexible Spending Account enrollment materials

10. Andrews University • Enrollment • To be completed/returned by May, 2005 • Plan effective date: July 1, 2005