1. Early Retiree Plan Benefit Options
April 2017

2. Introductions Greg Long Kent Trelford-Thompson
EHA Field Representative
Kent Trelford-Thompson
BCBSNE Account Executive
Introductions

3. Agenda Plan and Rates Benefit Plan Options Health Savings Accounts
Next Steps
Agenda

4. 2017/18 Rates for Early Retirees Medical Rates Only
Benefit Option
Employee
Employee + Children
Employee + Spouse
Employee + Family
$900 Deductible
$668.72
$1,185.45
$1,404.29
$1,775.13
$2,000 Deductible
$564.23
$1,000.18
$1,184.84
$1,497.71
$3,500 Deductible
$4,000 Deductible
$501.54
$889.09
$1,053.23
$1,331.34

5. Early Retiree Rate Comparison Medical Rates Only
Benefit Option
Employee
Employee + Children
Employee + Spouse
Employee + Family
$900 Deductible
$668.72
$1,185.45
$1,404.29
$1,775.13
$2,000 & $3,500 Plans
$564.23
$1,000.18
$1,184.84
$1,497.71
Premium Difference to $900 Plan
Monthly
$104.49
Annually
$1,253.88
$185.27
$2,223.24
$219.45 $
$277.42
$3,329.04
$4,000 Deductible
$501.54
$889.09
$1,053.23
$1,331.34
$167.18
$2,006.16
$296.36 $
$351.06
$4,212.72
$443.79
$5,325.48

6. $900 Deductible PPO Benefit Item In-Network Out-of-Network Deductible
Individual
Family
$900
$1,800
$3,600
Coinsurance
20%
40%
Out-of-Pocket Maximum
$4,650
$9,500
$19,000
Office Visits
Primary Care
Specialist
$30
$50
Ded & Coins
Hospital Services
Inpatient
Outpatient

7. $900 PPO Benefit Item In-network Out-of-Network Emergency Services
Urgent Care
Emergency Room
$50 Copay Ded & Coins
$75 Copay Ded & Coins
Ded & Coins
Preventive Services
Covered at 100%
Prescription Drugs
Generic
Formulary Brand Name
Non-Formulary
Specialty In-Network
$5 / $25
$40 / $80
$70 / $110
$170 / $340
+ 25% Surcharge
Mental Health
Inpatient
Outpatient

8. $2,000 Deductible PPO Benefit Item In-Network Out-of-Network
Individual
Family
$2,000
$4,000
$8,000
Coinsurance
30%
40%
Out-of-Pocket Maximum
$6,850
$13,700
$27,400
Office Visits
Primary Care
Specialist
$45
$65
Ded & Coins
Hospital Services
Inpatient
Outpatient

9. $2,000 PPO Benefit Item In-network Out-of-Network Emergency Services
Urgent Care
Emergency Room
$65 Copay Ded & Coins
$90 Copay Ded & Coins
Ded & Coins
Preventive Services
Covered at 100%
Prescription Drugs
Generic
Formulary Brand Name
Non-Formulary
Specialty In-Network
$7 / $30
$45 / $90
$70 / $110
$170 / $340
+ 25% Surcharge
Mental Health
Inpatient
Outpatient

10. $3,500 Deductible HSA Benefit Item In-Network Out-of-Network
Individual
Family
$3,500
$6,850
$7,000
$13,700
Coinsurance 0%
20%
Out-of-Pocket Maximum
$12,000
$23,700
Office Visits
Primary Care
Specialist
Ded
Ded & Coins
Hospital Services
Inpatient
Outpatient

11. $3,500 HSA Benefit Item In-network Out-of-Network Emergency Services
Urgent Care
Emergency Room
Ded
Ded & Coins
Preventive Services
Prescription Drugs
Generic
Formulary Brand Name
Non-Formulary
Specialty In-Network
Mental Health
Inpatient
Outpatient

12. $4,000 Deductible HSA Benefit Item In-Network Out-of-Network
Individual
Family
$4,000
$8,000
$16,000
Coinsurance
30%
50%
Out-of-Pocket Maximum
Ded & Coins
Office Visits
Primary Care
Specialist
Hospital Services
Inpatient
Outpatient

13. $4,000 HSA Benefit Item In-network Out-of-Network Emergency Services
Urgent Care
Emergency Room
Ded & Coins
Preventive Services
Covered at 100%
Prescription Drugs
Generic
Formulary Brand Name
Non-Formulary
Specialty In-Network
Mental Health
Inpatient
Outpatient

14. Advantages of HSAs
You see the true cost of medical care and have better control over how your dollars are spent
Triple Tax Savings:
Tax deductions when you contribute to your account
Tax-free earnings through investments/interest
Tax-free withdrawals for qualified medical expenses
Unused Funds may roll over to next plan year and beyond
Portability - Accounts are completely portable if you:
Change your medical coverage
Move to another state
Change your marital status

15. Who Can Open an HSA Age Requirement: 18 or older
Must be enrolled in a qualifying High Deductible Health Plan (HDHP)
Cannot be covered by any non-qualified HDHP Health Insurance
Cannot be enrolled in Medicare
Cannot be claimed as a dependent on another individual’s tax return

16. 2017 HSA Contributions
Maximum annual contribution amounts for 2017 are:
- $3,400 Individual Coverage
- $6,750 Family Coverage
2017 Catch-up Contributions for HSA owners ages 55+
- $1,000 for 2009 and thereafter
****if the account owner has a spouse who is covered under the HDHP, and they are they qualify to make the catch-up contribution – this contribution would need to be into their own account!

17. HSA Contributions (continued)
Contributions can be made as late as April 15 of the following year
Anyone can contribute to an HSA for you
Contributions are Tax deductible (unless made by your employer)
Tax-Free earnings through investments/interest
Excess Contributions not withdrawn are subject to a 6% excise tax
If your eligibility changes during the year, contribution limits may need to be pro-rated

18. HSA Distributions
Distributions for qualified medical, dental or vision expenses are not taxed
Non-qualified expenses are taxable as ordinary income plus an additional 20% penalty
(exceptions: individual’s death, disability or reaching age 65)
Distributions for nonqualified expenses taken after age 65 are taxed at the current tax rate and are NOT subject to the 20% penalty

19. What Medical Expenses Qualify?
Prescriptions and qualified deductible expenses
Qualified long-term care services and a percentage of long term care insurance premiums
COBRA premiums
Health insurance for those on unemployment compensation
Eye Exams
Dental Exams
For more detailed information, please refer to IRS Publication 502, found online at

20. HSA Beneficiaries
Surviving spouse becomes the owner of the account and can use it as if it were their own HSA
No surviving spouse? The account is no longer treated as an HSA. The account passes to your beneficiary, or becomes part of your estate (and is subject to any applicable taxes)

21. Two Types of Accounts to Meet Your Savings and Investment Needs
Deposit HSA
Variable Balance
High Activity
Easily Accessible
Online Bill Pay
FDIC Insured Account
Mutual Fund Account
Growth-oriented account
Low level of activity
Higher balances
Online Management
Not FDIC Insured!

22. Accessibility
The balances in your Deposit HSA are immediately accessible using your:
HSA Debit Card
Online BillPay
Checks - you may choose to purchase checks for your account!

23. Health Savings Accounts Encourage Healthy Living
Preventative care is not a deductible expense and is covered at 100% by your CDHP
Proactive approach to health care
The money that you do not use in the account is yours to keep – an incentive to live a healthy lifestyle

24. Account Owner Responsibility
If you have specific tax questions, please consult your tax professional
Union Bank & Trust is not responsible for monitoring the account for proper usage
It is the Account Owner’s responsibility to maintain all records and receipts for the account
Tax forms will be mailed to the Account Owner
Contact Union Bank & Trust if you have a change in address or status, receive a refund, or have a mistaken distribution
Remember that when used properly, the Health Savings Account offers Triple Tax Savings!! Tax-Free Contributions, Tax-Free Earnings, and Tax- Free Qualified Distributions

25. Questions