1. Introducing The High Deductible Health Plan (HDHP) with Health savings account (HSA)
2018 open enrollment: October 23 – November 10, 2017

2. INTRODUCING THE HDHP with HSA
Effective January 1, 2018, Bentley will introduce a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA)
The plan will be offered through Harvard Pilgrim Health Care (HPHC), our current health plan administrator
The HSA will be managed by HealthEquity, a new partner
The HDHP with HSA will be offered alongside our three current plans: Best Buy HMO, HMO, and PPO
Current plans will have modest changes for 2018
Benefits-eligible Faculty and Staff will have the opportunity to enroll in the HDHP with HSA during the Open Enrollment period
Note: If you (or your spouse/partner, if a tax dependent) are enrolled in Medicare Part A or B or Medicaid, you will not be able to contribute to nor receive Bentley contributions to an HSA

3. Why is Bentley offering an hdhp with hsa?
To provide another option for controlling your healthcare spend
To provide you tax/financial benefits

4. HDHP: YOU’RE IN CHARGE OF YOUR HEALTHCARE DOLLARS
The HDHP features lower payroll premiums. You pay more out of pocket at the point of care.
After you reach your deductible, the plan pays a percentage of the cost of care, up to the out-of-pocket maximum, at which point the plan pays 100%
Prescription drugs are covered as copays after you reach the deductible
You can receive both in- and out-of-network care
Note: you will be required to pay more for care if you use out-of-network providers

5. HDHP with HSA: UNDERSTANDING THE COSTS
Maximum paid out of pocket after deductible is met
Plan Provision
HDHP w/ HSA
In-Network
Out-of-Network
Annual Deductible
$2,000 / $4,000
$4,000 / $8,000
Out-of-Pocket Maximum
$6,000 / $12,000
Coinsurance
90%, after deductible
70%, after deductible
Office Visit
Emergency Room
Inpatient / Outpatient
Prescription Drugs (Retail / Mail Order)
$15 / $30 / $50 copay
$30 / $60 / $150 copay,
after deductible
n/a
OOPM
100% after $4,000 (in-network)
Health plan pays 90% (in network)
$2,000 Deductible
Employee’s share of deductible
as little as $1,250
100% Preventive Care (in-network)
Employer HSA funding up to $750
Unused HSA funds roll over year to year and are portable
You can also contribute pre-tax dollars
Note: in order to meet the $4,000 Individual out-of-pocket maximum, you must incur $22,000 in non-preventive covered services

6. Prescription coverage under the HDHP - UNDERSTANDING THE COST
Reminder - OptumRx is the new pharmacy administrator
The full cost of prescriptions count toward your deductible until it is satisfied
Prescription drugs are covered as copays after you reach the deductible
Call OptumRx at or visit at optumrx.com/CTRNS to check on the cost of your or the tier.
Consider talking to your doctor about lower-cost alternatives, such as generic equivalents, and taking advantage of the mail order service to save money

7. HOW DEDUCTIBLES AND out-of-pocket maximumS WORK
Everything is subject to the deductible, except preventive care.
Once the deductible is met, the plan pays a certain percentage of the cost of care, and prescription drugs are subject to copays.
The entire $4,000 family Deductible must be met before benefits are provided to any family member. There is no “embedded” individual deductible.
Out-of-Pocket Maximum
The entire $8,000 family out-of- pocket maximum must be met before benefits are provided to any family member. There is no “embedded” out-of-pocket maximum.
Out-of-pocket maximum applies to all covered services, including the deductible.

8. Total Cost (Illustrative):
coverage examples
Total Cost (Illustrative):
Your Cost:
Explanation:
Individual: Knee MRI (prior to deductible)
$900
$900
Full cost, up to Individual deductible
$4,000 Family Deductible, plus 10% Coinsurance on remainder ($1,000)
Family: Outpatient Procedure (prior to deductible)
$5,000
$4,100
$1,500
$1,500
Individual: 12-Month Tier 2 Medication, Mail Order (prior to deductible)
Full cost, up to Individual deductible
Individual: 12-Month Tier 2 Medication, Mail Order (after deductible)
$1,500
$240
4x $60 Tier 2 Mail Order Copay

9. Healthcare Premiums: HOW THE HDHP with HSA stacks up
The HDHP with HSA has lower payroll premiums than other plan options:
Saving you $4,879 for Individual coverage (or $12,642 for Family coverage) vs. the PPO
Saving you $2,020 for Individual coverage (or $5,236 for Family coverage) vs. the HMO
Saving you $634 for Individual coverage (or $1,643 for Family coverage) vs. the Best Buy HMO

10. Hsa eligibility: DO YOU QUALIFY?
In order to contribute to an HSA, you must:
Be enrolled in a qualified High Deductible Health plan (HDHP)
Not have other health coverage (see IRS Publication 969)
Not be enrolled in any part of Medicare or Medicaid –nor can your spouse/partner, if s/he is a tax dependent
Not be listed as a dependent on someone else’s tax return
Not be active in the military*
Not be enrolled in a Health Care FSA (including through a spouse’s plan) or have a Health Care FSA balance
You must have a $0 balance in your Health Care FSA on 12/31/17 to make or receive Bentley’s HSA contributions in the first quarter of 2018
Being enrolled in a Dependent Care FSA does not impact your HSA eligibility
* Veterans enrolled in a High Deductible Health Plans with no other disqualifying coverage and who have a service-connected disability may make or receive HSA contributions regardless of when they received VA benefits

11. HSA: TAX AND FINANCIAL BENEFITS
An HSA is savings account that allows you to put aside pretax dollars to pay for qualified medical, dental, and vision expenses for you and your eligible dependents now—and in retirement
Bentley helps fund your HSA in two ways (with a contribution on January 1st and matching contributions), and you can contribute too, up to the 2018 IRS limits:
$3,450 Individual / $6,900 Family
If you are 55 or older or turning 55 in 2018, you can contribute an additional $1,000 in catch-up contributions
You benefit from a triple tax advantage:
Tax-free contributions
Tax-free interest/investment earnings
Tax-free withdrawals for qualified expenses
Other advantages of the HSA:
You can take it with you if you change jobs
The balance rolls over from year to year
You have the potential to make money on your money by investing your account once you reach a certain balance

12. Additional $1,000 – if 55 or older
Hsa Contributions (2018)
January 1: Bentley makes a contribution to your HSA just for enrolling:
Bentley Contributes:
Individual: $250
Family: $500
Throughout the Year: you contribute to your HSA on a pre-tax basis, and Bentley matches, up to certain limits:
You Contribute:
Individual: $2,700
Family: $5,400
Bentley Matches:
Individual: $500
Family: $1,000
If you take full advantage, Bentley will ensure you don’t exceed the 2018 IRS maximums*
2018 IRS Maximums:
Individual: $3,450
Family: $6,900
Additional $1,000 – if 55 or older
* Applies to payroll contributions only; Bentley cannot track contributions made outside of payroll. Bentley will ensure your payroll contributions do not exceed the IRS annual maximum.

13. Payroll Premium Savings & HSA Contribution example
HMO:
$2,553
2018 Payroll Premium Contributions (Individual):
HDHP with HSA:
$533
Savings:
$2,020
You can contribute some, or all, of these savings to your HSA on a pre-tax basis - = +
Bentley will contribute $250, and match dollar-for-dollar up to an additional $500
Your HSA Contribution:
$750 =
Total Payroll Premium Savings & Bentley HSA Contribution:
$2,770
If you contribute an additional $680, you will reach the 2018 IRS limit ($3,450)
The highest cost you could incur (worst-case scenario) under our HDHP with HSA plan design is $4,000, only $550 more than the IRS HSA contribution limit

14. WHAT ARE QualifyING HSA expenses?
Qualified medical expenses are outlined in IRS publication 502, and IRC Section 213 and include:
Deductibles
Copays
Coinsurance
Eyeglasses/contact lenses
Dental care
Important notes regarding eligible expenses:
HSA funds can be used for qualified expenses for your tax dependents. You cannot use HSA funds for adult child dependents or domestic partners’ claims unless you claim them as dependents on your tax return.
You can only use HSA funds for reimbursement of claims incurred after the date the HSA is opened (January 1).
You can continue to use HSA funds for qualified expenses even if you are no longer enrolled in a qualified HDHP, however, you are not able to contribute additional funds to the HSA if you are no longer enrolled in a qualified HDHP.
If you use HSA funds to pay for non-qualified expenses, those funds will be taxed as ordinary income and be subject to an additional 20% penalty.

15. Is the hdhp with hSA right for you?
The HDHP with HSA may be right for you if you:
Are willing to have higher deductible (and point-of-care costs) in exchange for lower payroll premium costs
Prefer the tax/retirement savings opportunity
Want to have access to both in- and out-of-network providers, knowing that out-of-network care costs more
Would like Bentley to contribute to your HSA

16. How to use your hdhp with hsa: ALEX®
Bentley will provide you with ALEX®, an interactive animated online tool, to help you decide which plan best meets your needs

17. TOOLS & Resources YOU CAN USE
Once you enroll in the HDHP with HSA, you’ll have access to a variety of helpful tools and resources.
HPHC Portal
HealthEquity
HPHC $aveOn

18. LEARN MORE – COMING SOON
If you enroll in the HDHP with HSA, you’ll be invited to an education session in December (dates/times TBD).
Discussion topics will include:
How to make the most of the HDHP
All about HSAs: contributing, saving, investing, and using
Maximizing your tools and resources: HPHC, HealthEquity, and $aveOn

19. Questions?

20. Thank you for attending!