1. Copyright 2010 First Horizon Msaver, Inc. AGENDA What is an HSA? Elements of Consumerism HSA Examples – Do the Math Resources Studies – HSAs are working! HSA Usage Trends Health Reform and CDHPs Connect with Eric on Linked In! www.linkedin.com/in/ericjohnson262 817-366-7536 EDJohnson@FirstHorizon.com

2. Copyright 2010 First Horizon Msaver, Inc. Usage trends we are seeing (3 year study)

3. Copyright 2010 First Horizon Msaver, Inc. HSA participants are all ages People in their 30s: 24% People in their 40s: 25% People in their 50s: 24%

4. Copyright 2010 First Horizon Msaver, Inc. Average Account Balances Are Increasing Health Savings Account (HSA) average account balances have been increasing throughout the year and from year to year.

5. Copyright 2010 First Horizon Msaver, Inc. Baby Boomers are Biggest Savers… The group of 50-59 year olds account for over one-third (34%) of the dollars currently being saved in First Horizon HSAs.

6. Copyright 2010 First Horizon Msaver, Inc. …and the Biggest Spenders The 50-59 age group slightly outspent other age segments accounting for 30% of the total account withdrawals.

7. Copyright 2010 First Horizon Msaver, Inc. Average Monthly HSA Use is On the Rise Per Account Per Month Transactions Tran s per Acct per Year Amt of Trans per Acct per Year Avg Monthl y Trans 20 076.3 $ 1,560 $ 130 20 087.4 $ 1,541 $ 128 *20 0910.9 $ 1,689 $ 141 * Through September 2009 So is the average transaction amount.

8. Copyright 2010 First Horizon Msaver, Inc. Per Account Per Month Transactions Tran s per Acct per Year Amt of Trans per Acct per Year Avg Monthl y Trans 20 076.3 $ 1,560 $ 130 20 087.4 $ 1,541 $ 128 *20 0910.9 $ 1,689 $ 141 Top 5 Merchant Categories by # of Transactions * Data from Jan-Aug 2009

9. Copyright 2010 First Horizon Msaver, Inc. Per Account Per Month Transactions Tran s per Acct per Year Amt of Trans per Acct per Year Avg Monthl y Trans 20 076.3 $ 1,560 $ 130 20 087.4 $ 1,541 $ 128 *20 0910.9 $ 1,689 $ 141 $$$ Amount by Merchant Category * Data from Jan-Aug 2009

10. Copyright 2010 First Horizon Msaver, Inc. Per Account Per Month Transactions Tran s per Acct per Year Amt of Trans per Acct per Year Avg Monthl y Trans 20 076.3 $ 1,560 $ 130 20 087.4 $ 1,541 $ 128 *20 0910.9 $ 1,689 $ 141 Top 5 HSA Spend by Transaction Amount

11. Copyright 2010 First Horizon Msaver, Inc. Widely Acceptanced, Appropriately Used In general the data indicates that HSA adoption has taken place across all age segments and it shows that people are making pre-tax or tax deductible contributions to their First Horizon HSA so that they can more efficiently save money for medical expenses.

12. Copyright 2010 First Horizon Msaver, Inc. Washington still has its sights on creating WDHC (Washington Directed Health Care).