1. © 2004 SHRM SHRM Weekly Online Survey: September 14, 2004 Health Savings Accounts Sample comprised of 250 randomly selected HR professionals. Analyzing 250 of 2012 emails sent; 1953 emails received (response rate = 13%) Survey fielded September 14 – 20, 2004; presentation generated on September 22, 2004. Margin of error is +/- 6%

2. © 2004 SHRM SHRM Weekly Online Survey: September 14, 2004 1. Does your organization currently offer or plan to offer HSAs for employees?

3. © 2004 SHRM SHRM Weekly Online Survey: September 14, 2004 1. Does your organization currently offer or plan to offer HSAs for employees? ChoiceCountPercentage Answered No, we currently do not offer HSAs 16566.3% Yes, we currently offer HSAs4618.5% No, but we plan to offer HSAs in the future 3815.3%

4. © 2004 SHRM SHRM Weekly Online Survey: September 14, 2004 2. What is your organization’s reason(s) for not offering HSAs? (Check all that apply.) Note: Only respondents who indicated that they do not currently offer nor have plans to offer HSAs were asked this question (n = 165).

5. © 2004 SHRM SHRM Weekly Online Survey: September 14, 2004 2. What is your organization’s reason(s) for not offering HSAs? (Check all that apply.) ChoiceCountPercent of Sample Other6325.2% Difficulty in educating employees about this plan option 4819.2% Lack of information from broker/vendor about this type of plan 4317.2% Lack of employee interest in managing their health care decisions 4216.8% Difficulty in managing employee expectations about this plan option 3714.8% Education level of the organization’s workforce 3413.6% An older workforce104.0% Difficulty in explaining this option to the C-Suite 62.4%

6. © 2004 SHRM SHRM Weekly Online Survey: September 14, 2004 Open Ended Responses to Question 2 1.We offer so many other valuable tools to the employees 2.We offer an FSA instead 3.We operate under State of MS regulations. 4.Limited insurers offering high deductible plans; limited value in our workforce 5.We provide a very low deductible and 100% paid in network plan 6.Not aware of a specific reason 7.Self insured now and like our plan 8.In state government, plans are decided by a separate board outside the control of the organization. Am not fully aware of the reasons they have not opted for this approach. 9.Significant change in benefit design 10.Retention issues 11.Unknown 12.Current better options for employees 13.We plan to evaluate HSAs in the near future to determine whether we will offer them in the future. 14.Employer pays all or most of health insurance costs. Interest would be minimal. 15.We have chosen to wait 1-2 years before looking into its options. It's too new in the marketplace, and we want to see how it comes together for other employers over a period of time.

7. © 2004 SHRM SHRM Weekly Online Survey: September 14, 2004 Continued… 16.These decisions made by corp. 17.I do not know 18.We may offer them as a health insurance option in the future. This will depend on anticipated premium cost savings and the number of employees who historically have less claims than the dollar amount of the HDHP deductible minimums. 19.We provide quality medical plans that are 85%-90% paid for by the company. We see no advantage to offering a high deductible plan. 20.Results/Effects of HSAs not well documented yet 21.We are considering as an option, but it is in the very early research stage. 22.Because health insurance plans must have an annual deductible of at least $1,000 for individuals and at least $2,000 for families and ours does not. 23.Currently evaluating - may offer in future 24.We are gathering information on HSAs to hopefully offer in the future. 25.We are still waiting on completion of Legislation to deal with the use or lose policy that currently exist. 26.Reviewing Option for 1/1/05 renewal 27.Never been presented to management 28.HR is now learning about the plan 29.Corporate decision 30.Currently doing research on this option and may offer it at our next open enrollment in January 31.Still investigating 32.If you are referring to Health Savings Account, the minimum deductible is too high. High Deductible Insurance Required

8. © 2004 SHRM SHRM Weekly Online Survey: September 14, 2004 Continued… 33.Lack of union buy-in 34.I am not involved in this area and truly have no idea why or why not. 35.Currently researching the plan 36.Lack of time to implement, I am ashamed to say 37.Never has been brought to bargaining table. 38.Not being offered by competitor employers at this time. 39.Because we don't have to consider it yet 40.Pre-tax premiums taken out of paycheck, plus we plan to offer a flexible spending account this year 41.Lack of clear value except to the employer 42.Company too new 43.Management does not like the idea 44.Awesome benefits with no high deductible plan needed 45.Lack of understanding/education of us (HR) on this option 46.Not Involved in Benefits Decisions 47.Just haven't looked into them in detail yet

9. © 2004 SHRM SHRM Weekly Online Survey: September 14, 2004 Continued… 48.We are considering installing an HSA in the future. However, we don't want to be the "guinea pig" and would like a better history of other employers who have installed an HSA plan. 49.Currently offering FSAs, not able to manage two 50.Understanding the rules and regulations issued by the government 51.Employee count not high enough 52.We have already investigated this and find that, on the whole, it is not advantageous for our mix of employees. 53.We are going to look at HSAs but, at this time, do not know if we will offer one. 54.Mostly part time and low wages (janitorial industry) 55.Currently reviewing options 56.Lack of employer interest 57.Waiting to make a better evaluation of the benefit for our employees 58.Insufficient Management 59.Health care is subject to collective bargaining agreement and changing to an HSA would be an inferior plan to what is in place. 60.Under a Corporate Umbrella 61.We are still researching the plans but could offer one in the future