Aetna and Health Equity

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Aetna and Health Equity Aetna HDHP Medical and

Pond Health Equity Danny Humphrey Health Equity

2 VMware Winning with an HSA Copyright 2013 HealthEquity, Inc. All rights reserved. HealthEquity and the HealthEquity logo are registered trademarks and service marks of HealthEquity, Inc. Confidential and proprietary. Reproduction without express written consent is prohibited.

3 Aetna HDHP Medical Plan Features Allows you to elect an HSA account administered by HealthEquity There are no copays A deductible must be satisfied before coinsurance kicks-in Plan has a maximum out of pocket. Once satisfied the plan pays medical and pharmacy costs at 100% 3

Aetna HDHP Plan (Aetna Choice POS II) HSA Eligible Calendar Year Deductible In-Network $1,350 Individual $2,700 Family Out-of-Network $1,350 Individual $2,700 Family Coinsurance 10% after deductible

4 Aetna HDHP Plan (Aetna Choice POS II) HSA Eligible Calendar Year Deductible In-Network $1,350 Individual $2,700 Family Out-of-Network $1,350 Individual $2,700 Family Coinsurance 10% after deductible 30% after deductible Calendar Year Out-of- Pocket Maximum $2,000 Individual $4,000 Family $6.000 Individual $12,000 Family Office Visit 10% after deductible 30% after deductible Preventive Care 100% 30% after deductible Hospital Lab and X-Ray Emergency Room 10% after deductible 30% after deductible 10% after deductible 30% after deductible 10% after deductible 10% after deductible 4

5 Deductible Out-of-pocket Max 100% Preventive Care (in-network) Deductible Out-of-pocket Max 100% Preventive Care (in-network) How Does the Aetna HDHP with HSA Plan Work? Single Coverage Family Coverage 0% after you reach the OOP $2,000 in-network/ $6,000 out-of-network 0% after you reach the OOP $4,000 in-network/ $12,000 out-of-network Then pay coinsurance 10% in-network/ 30% out-of-network Then pay coinsurance 10% in-network/ 30% out-of-network Pay the deductible $1,350 in-network/ $1,350 out-of-network Coverage Level *Contribution $750 Employer + Employee $ Pay the deductible $2,700 in-network/ $2,700 out-of-network Coverage Level *Contribution $1,500 Employer + Employee $ *Includes one time seed money of $250 for single and $500 for family in

6 Aetna HDHP (Choice POS II) Aetna Pharmacy Management Prescription Programs Rx Retail Generic Formulary Brand Formulary Non-Formulary (up to a 30 day supply) Rx Mail Generic Formulary Brand Formulary Non-Formulary (*Up to a 90 day supply) Participating Pharmacy 10% after deductible 10% after deductible 10% after deductible ***Coinsurance applies after deductible is met*** 10% after deductible 10% after deductible 10% after deductible ***Coinsurance applies after deductible is met*** Non-Participating Pharmacy 50% after deductible 50% after deductible 50% after deductible Not Covered. ***Preventive Medications Deductible is waived for certain preventive medications such that only the coinsurance applies. A full list of these drugs is available on Aetna Navigator or the following link Preventive Drug List * * Obtain a 90 day Rx from your MD. Mail Order Drug (MOD) forms can be found on Once on MOD obtain refills onlineobtain a 90 day Rx from your MD. Mail Order Drug (MOD) forms can be found on Once on MOD obtain refills online 6

7 Winning with an HSA 7

Copays, and Coinsurance ALL count towards Out of Pocket maximum HSA through

8 Two Parts: Health Plan + Savings Account HSA-qualified plan: Aetna High Deductible Health Plan Preventative services covered at 100% Office Visits, Rx, Deductible, Copays, and Coinsurance ALL count towards Out of Pocket maximum HSA through HealthEquity Tax-free savings for medical expenses Works in conjunction with the HSA powered plan

couple will need $220,000 to cover medical expenses not covered by Medicare in retirement** HSA funds roll over from year to year Tax-free interest earned You keep the money even if you change jobs

9 Why choose an HSA? Easy win in today s complex health care system: Save now: Lower monthly insurance premiums HSA deposits aren t taxed* Typically lowers income tax liability* Save for the future: The average retired couple will need $220,000 to cover medical expenses not covered by Medicare in retirement** HSA funds roll over from year to year Tax-free interest earned You keep the money even if you change jobs or insurance plans Comprehensive and easy investment options Same doctors, same network, same pricing Triple Tax Savings!! In tax free Grows tax free Out tax free *Tax statements refer to federal taxes. A few states treat HSA contributions as taxable. Those states include California, Alabama, and New Jersey. Consult your tax advisor for more details. **Source: Fidelity 9

Deductible) - Lower monthly premium - Higher deductible

10 How an HSA works Traditional health plan vs. HSA-qualified health plan (Aetna PPO) (Aetna High Deductible) - Lower monthly premium - Higher deductible - Larger monthly premium - Lower deductible - Money into savings account 10

11 How an HSA works You and VMware $ $ Qualified medical expenses: Exams, prescriptions, procedures, vision, dental and more For a complete list of qualified expenses see Publication

* Family-coverage: $6,750 Save up to $2025 in Taxes!

12 Maximize your savings Maximize your HSA contributions in 2016: Single-coverage: $3,350 Save up to $1005 in Taxes!* Family-coverage: $6,750 Save up to $2025 in Taxes!* Catch-up contribution, age 55+: $1,000 *Based on 30% tax rate. Actual results may vary. 12

13 How to contribute to your HSA VMware is contributing into your HSA! Individual: $500, Family: $1,000 Plus first year seed: $250, $500 Make pre-tax contributions through payroll deductions Change your payroll contributions at any time Make post-tax contributions directly to HealthEquity online or by sending a check Fully fund your HSA on day one Make contributions anytime after your HSA is open Can make contributions up until April 15 th for the previous tax year *Post-tax contributions ONLY 13

14 Who is eligible for an HSA? To contribute to an HSA, you as the account holder need to: Be covered ONLY by an HSA-qualified health plan Other health coverage (including Medicare, Tricare, a traditional health plan) may disqualify you No general purpose FSA (including through a spouse) Not claimed as a dependent on someone else s tax return 14

15 Who can use my HSA dollars? Spouse For Federal tax purposes, HSAs can be used to pay medical expenses of same-sex spouses For Federal tax purposes, domestic partners are not considered spouses Domestic Partners can set-up their own unsponsored HSA with HealthEquity Tax Dependents If a child is still a tax-dependent (up to age 19 or, if full-time student, age 24), then the child s out-of-pocket medical expenses can be paid with your HSA When your child is no longer a tax-dependent but on your medical insurance plan (through age 26), then your child s out-of-pocket medical expenses cannot be paid with your HSA Dependent can set-up their own unsponsored HSA with HealthEquity 15

16 HSA winners 16

The shopper SHOPPER: High medical utilizer Hits out-of-pocket maximum with traditional health plan How a Shopper wins: Significantly lower monthly premiums No copays

17 The shopper SHOPPER: High medical utilizer Hits out-of-pocket maximum with traditional health plan How a Shopper wins: Significantly lower monthly premiums No copays on top of out-of-pocket expenses Out-of-pocket expenses are paid with tax-free HSA funds * Results may vary. Based on plan design, contributions and your tax rate. 17

The minimalist MINIMALIST: Low medical utilizer Desires flexibility and minimum monthly premium How a Minimalist wins: Significantly lower

18 The minimalist MINIMALIST: Low medical utilizer Desires flexibility and minimum monthly premium How a Minimalist wins: Significantly lower monthly premiums Out-of-pocket expenses are paid with tax-free HSA funds * Results may vary. Based on plan design, contributions and your tax rate. 18

19 The saver SAVER: Financially savvy Optimizes account savings How a Saver wins: Another avenue for investing tax-free Significantly lower monthly premiums Out-of-pocket expenses are paid with tax-free HSA funds * Results may vary. Based on plan design, contributions and your tax rate. 19

The survivor SURVIVOR: One or more chronic conditions Hits out-of-pocket maximum with traditional health plan How a Survivor wins: Prescription out-of-pocket expenses are capped, no copays

20 The survivor SURVIVOR: One or more chronic conditions Hits out-of-pocket maximum with traditional health plan How a Survivor wins: Prescription out-of-pocket expenses are capped, no copays Significantly lower monthly premiums No copays on top of out-of-pocket expenses Out-of-pocket expenses are paid with tax-free HSA funds * Results may vary. Based on plan design, contributions and your tax rate. 20

Plan comparison tool & Member Resource Site VMware HealthEquity Member Resource Site: www.

21 Plan comparison tool & Member Resource Site VMware HealthEquity Member Resource Site: Aetna Plan Comparison Tool 21

com/ed/vmware Using our free mobile app By telephone Use your HealthEquity account to Check

22 Convenient Access Convenient access Debit card Online Single Sign on through the VMware benefits site Using our free mobile app By telephone Use your HealthEquity account to Check your balance Review transactions Review claims Submit new claims or documents Send payments and reimbursements Access tax documents Invest your HSA dollars 22

23 HSA Investment overview VMware Copyright 2013 HealthEquity, Inc. All rights reserved. HealthEquity and the HealthEquity logo are registered trademarks and service marks of HealthEquity, Inc. Confidential and proprietary. Reproduction without express written consent is prohibited.

24 HSA fund lineup summary VMware Metrics Number of funds Management style Fund expense average HQY Investment Admin fee Share class types HSA Investments 26 Active (14) Passive (12) Active 0.49 Passive Institutional Admiral *Administration & bookkeeping fee of 0.40% (40 bps) annual paid to HealthEquity via fund expense in the form of a revenue share. No fund minimums, loads, short-term redemption fees or trading costs Options for customization to mirror 401(k) plan funds (mutual funds only) Investor Choice I, II & III can be made the primary fund lineup 24

25 HealthEquity Advisor Two levels of advisory service to choose from: Self-driven GPS Auto-pilot 25

GPS Guidance provided by Advisor, implemented by you Recommended portfolio advice Recommended rebalance Recommended fund and asset class rotation Weekly performance

26 GPS Guidance provided by Advisor, implemented by you Recommended portfolio advice Recommended rebalance Recommended fund and asset class rotation Weekly performance summary (SEC Compliant) Monitoring & alerts ( s & texts) Subscription-based, cancel at any time Easy trade button Monthly fee.05% of invested balance ($.50 per $1000) 26

Auto-pilot Automatically implemented and managed for you Execution on advice Rebalancing Mutual fund rotation Asset class rotation Weekly performance summary

27 Auto-pilot Automatically implemented and managed for you Execution on advice Rebalancing Mutual fund rotation Asset class rotation Weekly performance summary (SEC Compliant) Monitoring and alerting ( s, text messages) Subscription based, cancel at anytime Monthly fee.08% of invested balance ($.80 per $1000) 27

Health Care Costs in Retirement The average couple will incur $220,000* to cover medical expenses during retirement This is $325,000 gross withdrawal from traditional 401(k) plan to achieve net

28 Health Care Costs in Retirement The average couple will incur $220,000* to cover medical expenses during retirement This is $325,000 gross withdrawal from traditional 401(k) plan to achieve net $220,000 medical expense in retirement** -or- Only $220,000 tax free withdrawal from HSA * Fidelity Benefits Consulting ** Assumes 33% tax rate 28

29 Impact of investments HSA Investors* vs. Eligible Non-investors** HSA Investors (annually): Contribute 54% more Balances 184% larger Spend the same for medical HSA Investors maximize the tax deferred benefits of the HSA substantially more than those who don t invest * Eligible Investors are account holders with >$500 above their respective minimum investment threshold and have investment balance >$0. ** Eligible Non Investors are account holders with >$500 above their respective minimum investment threshold, and have investment balance = $0 29

year Call today Let us conduct a personal assessment of

30 Trusted Advisors Always available Our member services agents are taking calls 24 hours a day, every day of the year Call today Let us conduct a personal assessment of your plan options

Winning with an HSA. Save & win. EMPOWERING you TO BUILD HEALTH SAVINGS. Health savings accounts (HSAs) HealthEquity All rights reserved.

Winning with an HSA. Save & win. EMPOWERING you TO BUILD HEALTH SAVINGS. Health savings accounts (HSAs) HealthEquity All rights reserved. Winning with an HSA Health savings accounts (HSAs) Save & win EMPOWERING you TO BUILD HEALTH SAVINGS Why HSAs? HSAs are an easy way to win in today s complex health care system HSAs empower health savings