EMPOWER. WITH HSAs SOLUTION THE POWERFUL. Integrated health savings accounts (HSAs) HealthEquity All rights reserved.

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1 EMPOWER WITH HSAs Integrated health savings accounts (HSAs) THE POWERFUL & easyhsa SOLUTION

2 Table of Contents Why offer HSAs 4 How employees win with HSAs 5 Our advantage 6 Account mentors 7 Personas 8 Timeline 10 2

3 A simpler approach to consumer-directed health care Your health plan and HealthEquity together deliver a fully integrated approach to consumer-directed health care that combines the industry-leading health savings account (HSA) solution with your customized health plan. It s a solution with easy enrollment, less paperwork and hassle-free claims. It also means simplified account management; online tools, resources and education; plus the dedicated service and support that distinguishes our offerings. 15 West Scenic Pointe Drive, Suite 100 Draper, UT info@healthequity.com 3

4 WHY OFFER HSAs? HSAs empower health savings By offering an HSA-qualified health plan, you enable employees to make savvy financial decisions and save for future health care expenses. Maximize benefits offerings In today s competitive job market, attractive benefit packages are essential to securing key talent. An HSA-qualified health plan, supplemented with employer HSA contributions, maximizes benefits offerings while maintaining cost control. A sure win with health care reform HSA-qualified plans are an effective way to ensure compliance with the Patient Protection and Affordable Care Act (PPACA) and avoid expensive Cadillac-tax penalties. 1 HSA funds roll over from year to year Unlike flexible spending accounts (FSAs), all remaining HSA funds roll over each year and are available for qualified health care expenses even if an employee changes health plans, retires or leaves a company. Employer tax savings Contributions made to employees HSAs qualify as a tax deduction for employers. 2 4 HOW AN HSA WORKS: A health savings account, paired with an HSA-qualified health plan, allows you and your employees to make pre-tax 3 contributions to an FDIC-insured account that can be used to pay for qualified medical expenses. Contributions made by you or your employees through payroll deductions result in FICA and income tax savings. HSA balances earn tax-free interest and roll over from year to year. HSA-qualified health plans typically cost less than traditional plans and the money saved can be deposited into an HSA for immediate use or long-term savings. 1 Cadillac tax is an excise tax imposed on employers who provide high dollar value benefits starting in Consult your tax advisor as to its applications. 2 HSA contributions are also exempted from FICA and FUTA. 3 HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-free with very few exceptions. Please consult a tax advisor regarding your state s specific rules.

5 HOW employees WIN WITH AN HSA Employee HSA deposits are not taxed 1 and can reduce the taxable income of users HSA withdrawals used for qualified health care expenses are not taxed 1 HSA deposits earn tax-free 1 interest HSA funds are FDIC-insured HSA funds can be used post-retirement (after age 65) for medical and non-medical expenses without penalty, much like an IRA 165 % Increase in HSAs from 2011 to $26 B HSA deposits in the US as of January Are you prepared? PPACA Learn more about how HSAs are a sure win with health care reform. Download our FREE white paper at: 60 % of employers likely face excise Cadillactaxes in HSA-qualified plans alleviate this concern 1 HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-free with very few exceptions. Please consult a tax advisor regarding your state s specific rules. 2 Source: 2013 Devenir HSA Research Report. February Source: 2015 Devenir HSA Research Report. February

6 Our Advantage WE LL TAKE YOU THERE. As an experienced provider of integrated HSA products, HealthEquity offers a unique customer experience that is powerful and easy. As your partner, we deliver: Easy execution Complete data integration between HealthEquity and your health plan enables easy execution before, during and after enrollment. Simple, elegant solutions Intuitive online administration tools designed specifically for consumer-driven health care. Powerful resources Dedicated support and educational resources for partners through our employer support team, employer web portal, and other tailored tools. Convenience Employers and members benefit from proprietary web capabilities featuring online payments and integrated claims data. Account mentors We provide a unique customer experience delivered by a knowledgeable team that offers education and insight to maximize savings. Compelling insight We understand health care consumers and speak effectively to their values and experiences. Our tailored communications provide a clear, positive message that engages employees and inspires greater adoption. 6

7 Account mentors HealthEquity member services Salt Lake City, Utah Helpful support for our members, available every hour of every day Our team of specialists based in Salt Lake City are available 24 hours a day, providing members with the tools and information they need to optimize their Health Savings Accounts. 7

8 HSA plans win vs. traditional plans Regardless of how you consume health care, an HSA plan will empower you to maximize savings while building a reserve for future medical expenses. Here are some specific examples of how an HSA grants savings for common lifestyles. 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 1 HSA funds 8 SAVER SAVER: Financially savvy Optimizes account savings How a Saver wins: Another avenue for tax-advantaged 1 investing Significantly lower monthly premiums Out-of-pocket expenses are paid with tax-free 1 HSA funds 1 HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-free with very few exceptions. Please consult a tax advisor regarding your state s specific rules.

9 Who are you? See how you can personally benefit from an HSA: MINIMALIST 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 1 HSA funds 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 1 HSA funds 1 HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-free with very few exceptions. Please consult a tax advisor regarding your state s specific rules. 9

10 TIMELINE 1. PREPARATION 2. INTEGRATION Select an HSA-qualified plan offered by your health plan Review timeline Group setup, employee enrollment Your health plan sends group eligibility to HealthEquity We ll take you there. 3. GO LIVE HealthEquity creates employer portal Our streamlined process makes implementing HSAs easy for employers. With powerful technology and an expert implementation team, we provide a convenient onboarding process with three easy phases: HealthEquity opens HSAs PREPARATION INTEGRATION Employer receives welcome communication GO LIVE Employees receive welcome materials 10

11 Offer the HealthEquity advantage today. Empower your employees to maximize health savings by offering our powerful and easy HSA solution. To get started, talk to your health plan representative, or contact HealthEquity at: Let s go! 11

12 HealthEquity Mobile app 1 available for FREE at: itunes App Store Google Play 1 Must activate account via HealthEquity website in order to utilize mobile app. Nothing contained in this communication is intended as legal, tax, financial, medical or marital advice. Always consult a professional when making life changing decisions. 15 West Scenic Pointe Drive, Suite 100 Draper, UT info@healthequity.com Empower_With_HSAs_ER_May_2016