Are You Considering an HDHP With an HSA?. Basic HSA Plan Concept.

Are You Considering an HDHP Are You Considering an HDHP With an HSA?With an HSA?

Basic HSA Plan ConceptBasic HSA Plan Concept

» Premium Savings

» Ability to offer health insurance to employees

» Employee opportunity to control healthcare spending

» Decreased rise of healthcare costs through lower utilization

Why Choose an HSA-Compatible Plan?

HSA Advantages

For an Employer » Tax benefits» Employee-owned funds promote increased motivation for

involvement in healthcare decisions » HSAs allow “matching” contribution options by employers

and employees through a cafeteria plan

For an Employee » Funds roll over each year» Tax benefits on the contributions, earnings, and

distributions» Long-term investment opportunity

Average Annual Premiums by Plan Type

» Single: HDHP/HSA premium is 10-18% less than Traditional Plans» Family: HDHP/HSA premium is 10-11% less than Traditional Plans

Plan HMO PPO POS HDHP/HSA

Single $5,350 $5,584 $5,841 $4,793

Family $15,288 $15,404 $15,260 $13,704

Source: The Kaiser Family Foundation AND Health Research & Educational Trust Employer Health Benefits 2011 Annual Survey

Traditional Plans vs. HSA-Compatible Health Plan

Five Step Set Up

1. Employer Completes Sign-up Form & Considers Enrollment Approval Options (Batch, Immediate, By Approval)

2. Reviews & Discusses Program Design

3. Selects Enrollment Method

4. Selects Contribution Method

5. Develops Communication & Education Plan

Program Design & Tips

Design Tips» Pay for HSA Fees» Contribute to Employee Accounts» Tie in Wellness» Avoid the Term “High Deductible”

Program Design Worksheet» Answer basic questions about your program, goals and

communication opportunities.» Receive custom tips for designing your program and

designing your communication plan.

Enrollment Options

» Group Online Enrollment » Employer vs. Employee

» Electronic Enrollment» Standard File Format

» Individual Online Enrollment » Paper Applications

Group Online Enrollment

HSA Bank’s Group Online Enrollment system allows you to submit a census data file,

which can make the enrollment process easier for your

employees by pre-filling certain fields for them. HSA Bank provides instructions on how to format the census data file as well

as a Microsoft Excel file.

Employee Contributions

» How are they made» Online» Check» Rollover (HSA or IRA)» Catch-up Contribution

» Who makes them» Accountholder» Employer» Third-party

» Maximum LimitYear Individual Family

2011 $3,050 $6,150

2012 $3,100 $6,250

MakesContributions

Employer Contributions

Instructions providedand BR assistance

available.

OnlineData File with Wire/ACH

ACH DirectCheck

1. Employer Chooses

Contribution Method

2. Sets-up Selected Option

+ =

Group Online Contributions

Step-by-step instructions

From this page you can add a new contribution, view/edit/cancel pending contributions, view your contribution history and view your bank information.

Distribution Options

» Visa® Debit Card» Online Transfers » HSA Checks» Withdrawal Form

Employer Customizations

» Add the name and logo to match your look.» Brochures» Websites» Welcome letters» Email Campaigns» Toll-free numbers

Employer Administration Area

» Manage Group Online Enrollment

» Make Contribution to Employees’ Accounts

» Upload Contribution Data and Census Files

» View Employees’ Status and Pending Enrollments

Internet Banking

www.hsabank.com/internetbanking

Account & Investments

» Savings Account» Interest bearing and FDIC insured

» (Rates subject to change visit www.hsabank.com)

» Self-directed Brokerage (Not FDIC Insured)

» Stocks, bonds and thousands of mutual funds» Mutual Fund Platform (Not FDIC Insured)

» Top performing mutual fund suite similar to 401K

Investment products are not FDIC insured, are not a deposit or other obligation of or guaranteed by HSA bank, and are subject to investment risks.

Communication Tips

» Begin education early

» Combine multiple forms of communication: printed, web, multi-media, in-person

» Emphasize the benefits of choice and empowerment

» Compare current plan design with HSA-compatible plan design

» Illustrate the tax benefits and long-term savings potential

» Involve spouses in the communication process

Online Tools

http://hsabank.com/Calculators

Spanish Resources

• Customer Service (866) 357-6232 7 a.m. – 9 p.m., CT, Monday – Friday

• Forms• Website

Building Success

14+ Years of Industry

Leadership

400,000Accounts

400+Health Plans

and TPAs

25,000+Employer Groups

HSAs are not a portion of our business, they are our business.

Customer Service

Business Relation Specialists: Call us:(866) 357-5232Monday through Friday, 7 a.m. - 7 p.m., CT

Email us: [email protected]

Visit: www.hsabank.com