Overview of your Health Savings Account (HSA) Insert name of audience Insert date

Overview of your Health Savings Account (HSA)Insert name of audience

Insert date

Confidential property of Optum. Do not distribute or reproduce without express permission from Optum.

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Agenda

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HSA trends

Making the most of your account

Qualified medical expenses

Making deposits to your account

Managing your HSA online

Signing up for an HSA

Common questions

Where to go for help

Investments are not FDIC insured, are not guaranteed by Optum Bank℠, and may lose value.

Confidential property of Optum. Do not distribute or reproduce without express permission from Optum. 4

Optum Bank , Member FDIC℠

Established in 2003

Subsidiary of Optum – owned by UnitedHealth Group

Deposits are insured by the FDIC up to $250,000

Focuses solely on health care banking

We have more than $2.8 billion in assets

One of the nation’s leading providers of health savings accounts

We administer over 1.5 million individual health savings accounts

Serves thousands of employers, families and individuals


You can expect

• Access to highly trained HSA specialists

• Responsiveness

• Online account enrollment

• Online education resources

• Easy-to-use online account management


What is an HSA?

Deposit money into your HSA.

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Health Savings Accounts (HSAs) are designed to help you save and pay for qualified medical expenses


Save on taxes.

Invest your savings in mutual funds.

Use your HSA to pay for qualified medical expenses.

$


HSA overview

Requires a qualifyinghigh-deductible

health plan (HDHP)

Grows over time and can be invested

Used to pay for qualified medical

expenses immediately

Account funds belong to you

Funded by you, your employer or others



What you need to know about an HSA

• You’re in charge of managing your HSA

• Annual contribution limits are set by the IRS

• Deposits can be made at any time and are available immediately

• All deposits up to the annual IRS limit are income tax-free

• Withdrawals made for qualified medical expenses are not subject to income tax



HSA eligibility

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You are eligible to open and contribute to an HSA if:

• You are covered by an HSA qualifying high deductible health plan (HDHP)

• You are not covered by any other health plan that is not a high deductible plan

• You are not entitled to Medicare, TRICARE or TRICARE for Life

• You have not received VA benefits within the past three months

• You are not claimed as a dependent on someone else’s tax return

• You are not covered by a health care flexible spending account (FSA)


Contribution limits

The IRS determines how much you can deposit into your HSA

each year.Amount

of contribution

In 2015, you can contribute up to $3,350 for individual coverage and up to $6,650 for family coverage. In 2016, the limit for individuals remains at $3,350 and the limit for families increases to $6,750.

Contributionrules

Those 55 years of age or higher, but not yet entitled to Medicare benefits, can fund an additional $1,000/year “catch-up” contribution.

Additionalcontribution

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How an HSA helps you save

The money Steve puts into his HSA is income tax-deductible

Any money Steve withdraws from his HSA to pay for qualified medical expenses is withdrawn income tax-free

Steve may earn interest on his account, and it is not taxable

The amount not spent during this year carries over for use in future years

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How much did Steve save?

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In 2015, Steve will deposit $6,650 into his HSA, the maximum contribution for family coverage

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Steve will withdraw $3,000 to pay for qualified medical expenses for himself and his family2

Steve earns interest on his account3

Steve will carry over $3,650 HSA dollars (contributions – expenses + account earnings) into the next year

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Steve’s federal and state income tax and FICA savings for the year are $2,504*

Steve will not have to pay income taxes on the $3,000 as long as he uses it to pay for qualified expenses

Steve does not have to pay income taxes on his interest

With a traditional plan, Steve wouldn’t have this carryover option, which helps him save for the future

* Assumes a 25% federal tax rate, 5% state tax rate and 7.65% FICA


Using your HSA funds

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• Use the funds in your HSA

• Build balances to cover your HDHP deductible

• Save for the future and grow funds tax-free

Use your HSA funds now, or save for the future


How you can make the most of your coverage

• Health care consumerism

• Make informed choices

• Look for ways to lower health care costs

• Own your health care decisions

• Understand your medical coverage

• Maintain a healthy lifestyle

• Use your preventative care coverage to catch health issues early

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Use HSA dollars to pay for qualified

medical expenses for your spouse

or dependents

HSA qualified medical expenses

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Medical plan deductibles and

coinsurance

Medical, dental and vision care

services & products


Other HSA-qualified medical expenses

Health coverage while receiving unemployment benefits

COBRA continuation coverage

Qualified long-term care

Medicare premiums and out-of-pocket expenses

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• Taxable as income

• Subject to a 20% tax penalty*

Paying for non-qualified expenses

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* The 20% tax penalty does not apply to account holders age 65 and older, those who become disabled or enroll in Medicare

Any HSA funds used for purposes other than to pay for qualified medical expenses are:


How to make deposits into your HSA

Contribute through payroll deduction and save on FICA taxesPayroll

deduction

Arrange a one time or recurring electronic transfer from an account at another financial institution

Contribute online

Deposit additional dollars into your account by mailing in a checkMail a check

You can make HSA deposits until April 15th in order to realize tax savings for the prior year


Rollovers from an IRA, MSA or HSA

One-time distribution from your traditional or Roth IRA

• Direct your IRA trustee to make the distribution into your HSA

• Cannot exceed your contribution eligibility

• Cannot include as income and is not tax deductible

Transfer funds directly into another HSA

• Direct an HSA administrator to transfer funds into another HSA

• Cannot include the amount as a deduction or distribution

Roll over amount from Archer Medical Savings Accounts (MSAs) and other HSAs

• Must roll over the amount within 60 days after the date of receipt

• Can make only one rollover contribution in a one-year period


Access your HSA funds

Use your Optum BankSM Health Savings Account Debit MasterCard®

Sign up for automatic bill pay and online banking

Use HSA checks for this account

Pay for an expense with personal funds and reimburse yourself from your HSA


Save your receipts!

• Save your receipts for all qualified medical expenses

• Our convenient receipt vault allows you to upload receipts and store them within your HSA online

• Optum BankSM does not track your expenses or verify eligibility


How Molly uses her HSA

Molly goes to the doctor with her HSA

After her visit to the doctor, Molly submits a claim to her health care plan

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Molly fills her prescription and pays for it with her HSA Debit MasterCard®

Molly presents her health plan member ID card at the doctor’s office

Molly receives and pays her doctor’s bill with her HSA Debit MasterCard®

Molly retains her receipts

Her doctor submits a claim to her health care plan


• Check your balance

• Arrange deposits from another banking account

• Pay bills to health care providers

• Reimburse yourself for qualified medical expenses paid out-of-pocket

• Use HSA calculators

• Check the contribution tracker for YTD contribution amounts

• Use the convenient receipt vault

• Manage investment activities for your HSA

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Managing your HSA online

Investments are not FDIC-insured, are not guaranteed by Optum BankSM

, and may lose value.

optumbank.com


Sign me up!

Go to optumbank.com

Click on “Open an HSA”

Follow screen prompts to complete an online application

Enroll in an HSA qualifying HDHP

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Sign me up!

Complete the HSA paper application provided by your employer

Enroll in an HSA qualifying HDHP


What to expect as a new account holder

• Optum BankSM Welcome Kit will be mailed 7 to 10 business days after you are successfully enrolled in an HSA

• Debit card will arrive in a separate mailing

• HSA materials are mailed separately from health plan materials

• After logging in to your account for the first time, you will be prompted to provide your email address. You’ll receive an Optum Bank bi-monthly newsletter with tips for helping you to make the most of your health care dollars


Common questions

Yes. You can open an HSA at any time, as long as you are covered by an HSA-qualifying high deductible health plan

Can I open a health savings account at any time during the year?

Yes. Funds in your HSA belong to you, including any contributions that your employer or anyone else has made

Can I take the funds in my HSA with me if I leave the company?

No. You can contribute as much as you’d like up to the IRS maximums. Many people base their contributions on the annual deductible required by their HDHP

Am I required to contribute a specific amount each year?

No. HSA plans are not subject to IRS “Use It or Lose It” regulations. This means that funds in the account continue to accumulate over time

Do I need to use all of the funds in my HSA during the year?


What if you have more questions?

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Visit optumbank.com

Talk to your employer

Call Optum Bank customer service (866) 234-8913

Thank you.

Health Savings Accounts (HSAs) are individual accounts offered by Optum BankSM Member FDIC, and are subject to eligibility and restrictions on distributions for qualified medical expenses set forth in section 213(d) of the Internal Revenue Code. State taxes may apply. Fees may reduce earnings on account. This communication is not intended as legal or tax advice. Please contact a competent legal or tax professional for personal advice on eligibility, tax treatment, and restrictions. Federal and state laws and regulations are subject to change.

Hypothetical example is for illustrative purposes only. All events, persons and results described herein are entirely fictitious and amounts will vary depending on your unique circumstances. Any resemblance to real events or persons, living or dead, is purely coincidental. Current rates are variable and may change at any time.

©2015 Optum, Inc. All rights reserved. 25324A-072015


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Overview of your Health Savings Account (HSA) Insert name of audience Insert date