WELCOME (insert group name) Flexible Spending Account (FSA) Basics

FSA: THE BASICS

What’s a Flexible Spending Account (FSA)? An FSA is an IRS regulated benefit that allows employees to save money on a pre-tax basis for eligible health care and dependent care expenses for yourself and your dependents. Employee Contribution Employee’s FSA Qualified Expense

Why enroll in the FSA? Pay for medical expenses for you and your dependents tax-free: No state, federal, or FICA taxes Tax savings of 25% to 30%! Funds available upfront (on the plan start date) Pay for any qualified expenses during the plan year Medical Dental Rx Vision See IRS Publication 502 for complete list

How it works Make election (amount) during open enrollment Can elect up to the plan maximum In 2013 your FSA contribution will be capped at $2500 due to health care reform law Claim the full election amount upfront using a claim form or submit claims online Use funds during the plan year Unused funds don’t roll over and are subject to the “Use it or lose it” rule Save receipts! Must be provided for reimbursements

Who’s eligible? Any employee whose employer offers an FSA and meets the employer's eligibility requirements

Types of FSAs? Health care FSA—used for qualified medical, Rx, dental, and vision expenses Dependent care FSA—used for child, elder, and other dependent care Limited purpose FSA (LPFSA)—used for dental and vision expenses only Available only to those with an health savings account (HSA)

Using Your FSA During open enrollment, elect how much you want to contribute for the year—up to the plan’s maximum Employer sets aside the amount you choose to put in the FSA— usually an equal portion from each paycheck When you have a qualified expense, use your FSA debit card {omit if not offered} or pay out of pocket and submit for reimbursement later Save all receipts, you’ll need them for reimbursement and possibly to prove to your employer or FSA administrator that expenses were qualified Expenses are reimbursable only if they occur during the plan year or grace period

MEMBER EXPERIENCE

HealthEquity Services HealthEquity delivers FSA administration through a best-in-class member portal Live Member Services specialists available 24/7/365 You can: View and manage account online Reimburse yourself for claims Submit claims online Fax or mail claim form with copy of explanation of benefits Get reimbursements by direct deposit or check

Member Experience 11 11 11 60–90 days prior 40 days prior Open Enrollment Meetings and Communications Account Screening and Setup Ongoing Interactions 60–90 days prior 40 days prior 20 days prior 17 Days prior 15 days prior Plan Yr. Begins Ongoing Enrollment HealthEquity Receives Enrollment Welcome Kit and Debit Card (omit if n/a) First Log In to Web Portal 01001010010110 11 11 11

HealthEquity Member Services is open all day, every day, 24/7/365 866.346.5800 Understand and manage the financial side of health care Save and spend health care dollars more wisely Build equity in your health plan

Any Questions? YOUR QUESTIONS? Thank You

Any Questions? Optional Slide

Dependent Care FSA You may contribute up to $5,000 pre-tax annually to pay for dependent care Expenses must be related to dependent care that allows an individual or married couple to remain gainfully employed or look for work. If married the spouse must work or be a full- time student. You can use your dependent care FSA to reimburse yourself for expenses for children up to age 12.