Your Health. Your Money. Your Choices High Deductible Health Plan, HSA, VEBA & FSA Prepared for Foley ISD November 16 th, 2015

HSA Overview What is a Health Savings Account (HSA)? Financial account that is owned by an individual Associated with a High Deductible Health Plan (HDHP) Contributions to the account are to pay for current and future medical expenses No “use it or lose it”, unused funds rollover Interest earned is tax free Investment opportunities Portable Beneficiary can be named to account Post age 65 non-medical distributions without penalty 2

HSA Employee Advantages Control over the account Ability to contribute tax free $ to HSA account 2016: single $3,350, family $6,750 Catch up (age 55+ ) $1,000 Rollover provides opportunity to save for future health care expenses Tax-exempt withdrawals for qualified medical expenses not covered by the health plan Interest and earnings grow tax free w/ investment opportunities Portability Post 65 non-medical withdraws This is the employee’s account and the entire balance belongs to the employee, regardless of your present of future employment and/or who deposited the funds. 3

VEBA Overview What is a VEBA Account? Financial account that is held in the employee’s name Contributions to the account are to pay for current and future medical expenses No “use it or lose it” - unused funds rollover Interest earned is tax free Investment opportunities No beneficiary can be named to the account Employer only contributions 4

VEBA Overview Who is eligible to enroll and contribute to a VEBA? Enrollment: Any individual employee that: Enrolls in the VEBA option medical plan No conflict being covered by any other health insurance (including FSA) – VEBA accounts coordinate with other benefits Contributions: Employer Only – No Employee Contributions 5

VEBA Employee Advantages Control over your account for qualified distributions Rollover provides opportunity to save for future health care expenses Tax-exempt withdrawals for qualified medical expenses not covered by the health plan Interest and earnings grow tax free with investment opportunities Spend down – post employment VEBA $ can be used to pay medical premiums (post employment) 6

What happens to my VEBA account if I move to the HSA plan? Active VEBA accounts make employees not eligible to contribute to the HSA account VEBA account will be limited to Dental and Vision claims only if you choose the HSA option Dental and vision claims are also eligible expenses from the HSA VEBA accounts can be completely frozen at the individual employee’s request, thus making the VEBA not eligible to pay dental and vision (complete VEBA stop form) Once you are no longer eligible to contribute to the HSA, the VEBA can be opened up to all IRS 231D expenses giving you the option of which account pays which eligible expenses.

Account Funding Strategy Use the preventive care portion of your plan eCare – Dr on Demand Minute clinic or retail clinics Use 911 if necessary – If not a life or death situation, evaluate ER needs Use Generics Inform your doctor/provider that you are on a HDHP Shop for medical value – compare charges

Flexible Spending Account Flex limits for Medical $2,550 Full election available on 1st day of plan Pre tax savings Use it or lose it – make your election carefully Debit card VEBA – FSA is very complementary HSA must have a limited FSA (dental & vision only)

Flexible Spending Account Dependent Care $5,000 limit Election available as withheld from payroll Children and adult daycare expenses eligible Pre tax savings Use it or lose it Separate election from Medical FSA

Using your account We make it easy to access your funds 11 Debit Card File a claim online, fax or mail Direct deposit

Debit Card – give you choice 12 Available on all VEBA & FSA accounts One card for multiple products Smart Card Accepted everywhere Visa is accepted No ATM No Fees for Debit Card Spouse or additional cards for no cost Some substantiation required (VEBA/FSA) SAVE RECEIPTS!

Online Member Service Center Managing your account is easy with SelectAccount.com Register with the site to: View your account 24/7 via PC, Tablet or mobile phone Request reimbursement for out of pocket expenses Check balance Make HSA Contributions View account activity Request additional debit cards, add/change beneficiaries, manage investment funds 13

– Keep all of your receipts in one place 14 Manage your health care receipts for future reimbursement Electronic document storage Easy-to-use Eliminates fading receipts No more bulky storage hassles Organize receipts View balance of unreimbursed receipts Peace of mind

Member Mobile More than an App, full website enabled experience from any mobile device View your account 24/7 via PC, Tablet or mobile phone Request reimbursement for out of pocket expenses Check balance Make HSA Contributions View account activity Request additional debit cards Manage investment funds 15

We’re here to help Our expert, friendly service team is here to answer your questions Monday thru Friday 7 a.m. to 8 p.m. CST SelectAccount.com Your Online Member Service Center 16