The BlueSaver SM HSA from Bank of America Savings for Today and Tomorrow.

The BlueSaverSM HSA from Bank of America•Savings for Today and Tomorrow

How Does the BlueSaver HSA Work?

• A Health Savings Account (HSA) works with your Independence Blue Cross qualified high-deductible health plan (HDHP).

• With an HDHP, the amount you contribute to the cost of your health plan is lower and your deductible higher.

• With an HSA, you can:

– Use the money you save on a lower premium plan to make tax-deductible HSA contributions

– Make withdrawals to pay for your deductible, co-pay and other qualified medical expenses

– Save for future health care expenses, because you own the account

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A tax-advantaged savings account for qualified health care expenses

What can you use it for?Qualified Medical Expenses include:

•Most medical care and services

• Office visit co-payments

• Chiropractic care, smoking cessation, weight loss

•Dental services

•Vision care

•Health insurance premiums under COBRA continuation coverage or while receiving unemployment compensation

•Medicare Part A or Part B premiums

•A qualified long-term insurance contract

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Tax Benefits of the HSA• Contributions are not subject to income tax• Contributions can be made by:

– The employer – You

• Pre-tax via payroll deductions• Post tax via direct deposit (your tax deductible

contributions are recognized when filing taxes)

– By any other third party• Contributions in excess of allowable limits must be

withdrawn or incur a tax penalty

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* Only individuals 55 or older may contribute the “catch-up” contributions, and only until they enroll in Medicare

Contribution Type

Amount

Individual $ 3,350

Family $ 6,650

Annual Catch Up* $ 1,000

2015 Contribution Limits

Tax Benefits of the HSA

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Tax-advantaged dollars can be invested while maintaining their tax-advantaged status, resulting in a significant tax savings over time.

HSA Key Features and Eligibility

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Key Features of an HSA HSA Eligibility

Funds deposited into an HSA are tax-advantaged and owned by the account holder

Participants must be enrolled in a qualified high-deductible health plan (QHDHP) before opening an HSA

Funds may be rolled over year to year; no “use-it or lose-it” rule

Cannot be covered by any other insurance plan that reimburses for health expenses

Accounts can accumulate significant assets that can be used for healthcare tax free

Cannot be enrolled in Medicare or Medicaid

Funds in the HSA can be invested in mutual funds once balance requirements are met

Cannot be eligible to be claimed as a dependent on another person’s tax return and must be over 18 years of age

Funds are portable and remain available if you change jobs

Cannot be covered by a general purpose healthcare FSA or a general purpose HRA. Alternative plan designs such as Limited Purpose FSA or Limited Purpose HRA may be permitted under certain circumstances

The Bank of America HSA

• No monthly account fee when you are enrolled in an Independence Blue Cross qualified HDHP

• Integrated with your healthcare member portal

– View and pay claims online

– Plan Activity Statements let you see how the HSA works with your medical plan

• Integrated customer service

• Wide variety of investments available once $500 accrued

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Managing Your HSATools to help you every step of the way

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Opening a Health Savings Account

• If you select an Independence Blue Cross qualified HDHP, you will automatically have a Bank of America HSA opened

• If you do not want this account, you do not have to take any action

– If an account does not receive any contributions within the first 90 days of being opened, it will automatically be closed

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What to Expect Once the HSA is Opened

• You will receive a debit card in the mail– Debit card will be active with the start of the plan

year (or when the account was opened)– Funds must be deposited into the account before

the card can be used• You will receive an HSA welcome kit in the mail

– How to use the HSA– How to make direct contributions– Where to go with questions

• You will have full access to your HSA from the member healthcare portal

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Employee Fund AccessHSA health care Visa® Debit Card issued to HSA account holders– Reimburse all or part of account holder’s qualified expenses– At point-of-sale locations– Pay amounts up to available HSA funds at time of payments

Direct Pay to Provider– Pay providers directly from ibxpress.com– Providers are able to easily connect your payment to a bill because the

payment references the claim number

Online Payment– Easy way to pay for medical expenses directly from HSA– Monitor, manage and schedule payments online any time– Reimburse yourself if you pay for an service using another account,

you can reimburse yourself

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Managing your HSA• Integrated website to access the medical plan and the HSA• Customer service support through Independence Blue

Cross• Plan Activity Statement shows claim from both a medical

and spending account perspective• Monthly HSA Statement that shows HSA activity• Investment options and information available online once

you have $500 in the account• HSA savings calculator tool to see how your HSA savings

can grow over time

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Information on EOBs, claims, spending accounts, and payments are consolidated in the Plan Activity Statement, a single, user-friendly statement.

Plan Activity Statement

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Employee Online ExperienceEasy access to helpful tools and resources

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• Spending accounts can be easily accessed from ibxpress.com.

Manage Your Spending Account Online

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• The YOUR COVERAGE tab provides information about benefits, discounts, and allows you to order ID cards.

Manage Your Spending Account Online

Manage Your Spending Account Online

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• Claims tab shows status and submission of a claim to the spending account.

• Employees can submit claims for self reimbursement or payment to a provider

Submitting a Manual Claim

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Medical claims, member liability, and spending accounts all work together

Pay claims with employee liability directly from the claims information

Claim Integration

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Payments can be made to the provider or back to the employee

Payment Integration

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View Your Claim Payment History

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• Payment status and history can be viewed and refined.

HSA InvestmentsOver 20 fund options through Bank of America

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Investing in the HSA• You will be able to invest exceeds $500• There are no separate trading or

administrative fees• You will have a single account with two

parts• Similar to a 401(k) in terms of investments• Investment guide gives you an overview of

process as well as options• Quarterly investment statements provide

updates on performance

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Investing in the HSA• Wide range of investment

options designed to meet the diverse investment needs of individuals

• Performance comparison chart, prospectus, fact sheet, Morningstar Report available online

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Moving Funds from Another HSA• Account holders can opt to consolidate

funds into the Bank of America HSA– Transfer funds without losing tax-

advantaged status– Funds with another bank will not

benefit from integration• Existing accounts remain available for

eligible expenses in the new plan year• Account holders should only initiate fund

transfer after the Bank of America HSA is open

– Best time to transfer funds will vary by member

Bank of America Account Holder Fees

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Item Fee

Monthly maintenance fee * Waived

Additional debit cards (up to 4) Waived

Brokerage account fee Waived

Investment transaction fee Waived

Account closure/rollover $ 25.00

Deposited item returned, per item $ 5.00

Contribution deposit slip re-orders Waived

Legal process fee (e.g., attachment, levy or garnishment), per occurrence $ 75.00**

Stop payment, each $ 25.00

Excess contribution, per return $ 25.00

Mailed copy of account statement or tax statement (each) Waived

Mailed copy of deposited item, each Waived

* While enrolled in Independence Blue Cross Qualified High Deductible Health Plan** Or such amount as may be established by law.

Questions?

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Thank you