1. The BlueSaver SM HSA from Bank of America Savings for Today and Tomorrow

2. The Next Generation of Spending Accounts Our new spending account products are closely integrated with our medical products and services. They provide plan design flexibility and ease-of- use to employers while making it easier for members to manage their benefits and make informed decisions. 2

3. How Does the BlueSaver HSA Work? The health savings account (HSA) works with your Independence Blue Cross qualified high-deductible health plan (HDHP). With an HDHP, the amount employees contribute to the cost of their health plan is lower and their deductible higher. With an HSA employees can: –Use the money to save on the deductible to make tax-deductible HSA contributions –Take tax-free withdrawals to pay for medical expenses to meet their deductible as well as other qualified medical expenses –Save for future health care expenses, because they own the account 3 A tax-advantaged savings account for qualified health care expenses

4. HSA Key Features and Eligibility 4 Key Features of an HSAHSA Eligibility Funds deposited into an HSA are tax-advantaged and owned by the account holder Participants must be enrolled in a qualified high- deductible health plan (QHDHP) before opening an HSA Funds may be rolled over year to year; no “use-it or lose- it” rule Cannot be covered by any other insurance plan that reimburses for health expenses Accounts can accumulate significant assets that can be used for healthcare tax free Cannot be enrolled in Medicare or Medicaid Funds in the HSA can be invested in mutual funds once balance requirements are met Cannot be eligible to be claimed as a dependent on another person’s tax return and must be over 18 years of age Funds are portable and remain available if you change jobs Cannot be covered by a general purpose healthcare FSA or a general purpose HRA. Alternative plan designs such as Limited Purpose FSA or Limited Purpose HRA may be permitted under certain circumstances

5. Tax Benefits of the HSA Contributions are not subject to income tax Contributions can be made by: –Payroll deductions (pre-tax) if employer offers it –By direct deposit (tax deductible contributions that are recognized when filing taxes) –By any third party Contributions in excess of allowable limits must be withdrawn or incur a tax penalty 5 * Only individuals 55 or older may contribute the “catch-up” contributions, and only until they enroll in Medicare Contribution TypeAmount Individual$ 3,350 Family$ 6,650 Annual Catch Up*$ 1,000 2015 Contribution Limits

6. Tax Benefits of the HSA 6 Tax-advantaged dollars can be invested while maintaining their tax- advantaged status, resulting in a significant tax savings over time.

7. Qualified Medical Expenses Most medical care and services Acupuncture, chiropractic care, smoking cessation, weight loss Dental services Vision care Health insurance premiums under COBRA continuation coverage or while receiving unemployment compensation Medicare Part A or Part B premiums A qualified long-term insurance contract 7

8. Employee Experience 8

9. The Bank of America HSA Integrated, easy access and support –Access through member portal –View and pay claims online –Customer service No monthly account fee for individuals enrolled in an Independence Blue Cross qualified HDHP Wide variety of investments available once $500 accrued 9

10. Opening the Health Savings Account Employers determine how accounts will be opened: Manual Option –Members can open up an HSA as soon as the plan year begins through two clicks on the member website at ibxpress.com –Log in to the portal –Click “Start an HSA and Save” located under to the right under “More Features” Automatic Option –All members who select an Independence Blue Cross qualified HDHP, will automatically have a Bank of America HSA opened –Best in cases where there is an employer contribution, and/or high participation –If an account does not receive any contributions within the first 90 days of being opened, it will automatically be closed 10

11. Manual Account Opening 11 Employees open an HSA by logging into ibxpress.com and following the instructions.

12. Account Holder Mailings 12 HSA welcome kit –Letter with account number –HSA brochure Includes direct contribution coupon –HSA information booklet including an investment overview HSA debit card –Active effective with the start of the plan year (or when the account was opened)

13. Employee Fund Access 13 HSA Visa® Debit Card –At point-of-sale locations or with a provider invoice –Payment up to available HSA funds at time of withdrawal Direct Pay to Provider –Choose to pay providers from ibxpress.com –Providers receive an explanation of payment that references back to the medical claim Self Reimbursement –Submit a claim online for self-reimbursement –Employee receives a check or has funds directly deposited into another account

14. Managing the HSA Integrated website to access the medical plan and the HSA Plan Activity Statement that shows claim from both a medical and spending account perspective Monthly HSA Statement that shows HSA activity Quarterly Member Statement that provides a more strategic summary of activities Investment options and information available online once the account holder has $500 in the account HSA savings calculator tool to see how HSA savings can grow over time Customer service support through Independence Blue Cross 14

15. Spending accounts are integrated into the member portal. Online Access 15

16. Medical claims, member liability, and spending accounts all work together Pay claims with employee liability directly from the claims information Claim Integration 16

17. Payments can be made to the provider or back to the employee Payment Integration 17

18. Claims that are not in the system can be submitted online for reimbursement Submitting a Manual Claim 18

19. Short videos and pdfs provide employees with easy instructions Educational Material 19

20. Customer Service 20 Customer service is through an IBC team that has been trained in both claims and spending accounts Employees are routed to this team based upon their group Once the member puts in their UMI when prompted, they will be routed to the spending account team.

21. Consolidated Financial Information Plan Activity Statement includes EOBs, claims, spending accounts, and payments information in a single, user-friendly statement. Plan Activity Statement 21

22. Investing in the HSA Members have access to a well balanced fund lineup. Members can invest once their balance exceeds $500 –No separate trading or administrative fees Single account with two parts –Similar to a 401(k) Investment guide provides an overview of process as well as options Quarterly investment statements provide updates on performance 22

23. Investment Options Wide range of investment options designed to meet the diverse investment needs of individuals Prospectus, fact sheet and Morningstar Report available online 23

24. Moving Funds from Another HSA 24 Account holders can opt to consolidate funds into the Bank of America HSA –Transfer funds without losing tax-advantaged status –Funds with another bank will not benefit from integration Existing accounts remain available for eligible expenses in the new plan year Account holders should only initiate fund transfer after the Bank of America HSA is open –Best time to transfer funds will vary by member

25. Bank of America Account Holder Fees (2-50 Small Market only) 25 ItemFee Monthly maintenance fee *Waived Additional debit cards (up to 4)Waived Brokerage account feeWaived Investment transaction feeWaived Account closure/rollover $ 25.00 Deposited item returned, per item $ 5.00 Contribution deposit slip re-ordersWaived Legal process fee (e.g., attachment, levy or garnishment), per occurrence$ 75.00** Stop payment, each $ 25.00 Excess contribution, per return$ 25.00 Mailed copy of account statement or tax statement (each)Waived Mailed copy of deposited item, eachWaived * While enrolled in Independence Blue Cross Qualified High Deductible Health Plan ** Or such amount as may be established by law.

26. Employer Experience 26

27. Employer Account Management 27 Group portal provides access to information: –Account status –Contributions (employer and/or payroll) –Reporting –Employer administrative fee Employers have limited access to member HSA information

28. Reporting Reports tab provides quick access to Spending Account reports. Reports include: HSA benefit summary report Debit card status report HSA Application Not Complete 28

29. HSA Employer Contributions 29 Through the group portal –Scheduled or through file upload File upload recommended for larger customers –SSN, not account number required. Can be set up in advance –Bank of America uses ACH debit post load to collect aggregate funds Data only file HSA Contribution Guide provides details on process Dedicated HSA employer contribution help desk available 8 am to 5 pm

30. Questions? 30

31. Thank you