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Dexter Community Schools

Dexter Health Plan Health Savings Account (HSA) 2013-14. Dexter Community Schools. PPO Medical Plan No deductible In-network, grandfathered, and out-of-network plan design $20 Office Visit and Urgent Care (in-network) $200 Emergency Room (waived if admitted or for accidental injury)

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Dexter Community Schools

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  1. Dexter Health Plan Health Savings Account (HSA) 2013-14 Dexter Community Schools

  2. PPO Medical Plan No deductible In-network, grandfathered, and out-of-network plan design $20 Office Visit and Urgent Care (in-network) $200 Emergency Room (waived if admitted or for accidental injury) $5/35/40 Rx copay, 2x MOPD Section 125 Medical FSA available (use it or lose it) Cost to Employee: 20% Single $1,251 Double $2,844 Family $3,524 Cost to DEA Employee: 25% Single $1,564 Double $3,555 Family $4,406 High Deductible Health Plan (HDHP) After $1250/2500 deductible (in network) $20 Office Visit and Urgent Care $200 Emergency Room (waived if admitted or for accidental injury) $5/35/40 Rx copay, 2x MOPD $2500/5000 maximum out of pocket costs (including deductible) In-network and out-of-network plan design HSA available (unused balance rolls over) Cost to Employee: $0 Cost to DEA Employee: 5% Single $248 Double $565 Family $702 Dexter Health Plan Options 2013-14 2 Confidential. Not for Distribution.

  3. What to consider? Example of employee costs: Family PlanPPO Medical PlanHDHPPremium employee cost $3,524 $ 0 Preventive care copay $ 0 $ 0 2/mo office visit cost $ 480 $ 1,440 2/year RX generic maint med $ 80 $ 400 2/yr urgent care visit cost $ 40 $ 200 2/yr blood work lab tests $ 0 $ 200 District HSA contribution - 60 Total employee costs $4,124 $ 2,180 3 Confidential. Not for Distribution.

  4. Another example… Example of employee costs: Family PlanPPO Medical PlanHDHPPremium employee cost $3,524 $ 0 Preventive care copay $ 0 $ 0 2/mo office visit cost $ 480 $ 1,440 2/year RX generic maint med $ 80 $ 400 2/yr urgent care visit cost $ 40 $ 200 2/yr blood work lab tests $ 0 $ 200 Surgery with 1 night hospital ($35,000) $ 0 $ 260 (to meet ded) $ 2,500 (20% copay to max) District HSA contribution - 60 Total employee costs $4,124 $ 4,940 4 Confidential. Not for Distribution.

  5. Your Choice Confidential Information. Not for Distribution. Confidential Information. Not for Distribution.

  6. Dexter Community Schools Health Plan will begin offering a qualified High Deductible Health Plan (HDHP) beginning 7/1/2013 You may now elect a HDHP that may make you eligible to open a Health Savings Account (HSA) Maximum contribution for 2013 calendar year is $3,250 if you elect single coverage and $6,450 if you elect double or family coverage (includes $60 from the District) Contributions are pretax (Federal, State, FICA, Medicare) Unused monies roll over from year to year It is your bank account, your HSA account. When you unelect, terminate, or retire, you may still use your money Health Savings Account (HSA) Confidential Information. Not for Distribution. Confidential Information. Not for Distribution.

  7. Your Choice Confidential Information. Not for Distribution. Confidential Information. Not for Distribution.

  8. HSA Eligibility • You are eligible if you enroll in the HDHP and are not NOT eligible. • You are NOT eligible: • If you are covered by other health insurance (i.e your spouse’s plan, your parent’s plan) • Does not limit you if you have dental, vision, life, disability, accident, specific injury, long term care insurance • If you are enrolled in Medicare • If you are enrolled in Medicare you may unenroll in Medicare to be eligible for an HSA • If you are covered by a Section 125 medical care reimbursement account • If you have a Section 125 medical reimbursement account in 2012-13 you must spend that money by June 30, 2013 • If you are claimed as a dependent on someone else’s tax return Confidential Information. Not for Distribution. Confidential Information. Not for Distribution.

  9. Make your election during open enrollment each May WebEnroll Election is for July 1, 2013-June 30, 2014 Maximum election for 2013-14 is $3,250 if you elect single coverage and $6,450 if you elect double or family coverage (includes $60 from the District, so your maximum employee allowable is $3,190/$6,390). Pay attention during WebEnroll. Your HSA contributions will be deducted over 14 pay periods September 30-December 31 = 7 pay periods in 2013 January 15-April 15 = 7 pay periods in 2014 Any premium contributions will still be deducted over 18 pays Pay attention during WebEnroll Contributions are deducted pretax (Federal, State, FICA, Medicare) If your contribution limit is reduced or eliminated based on what type of medical coverage you have and your spouse has, you are responsible for determining your contribution limit HSA Contributions from your Paycheck Confidential Information. Not for Distribution. Confidential Information. Not for Distribution.

  10. With an HSA we have flexibility to increase your contribution that was not available in the Section 125 medical care reimbursement account (which is only when you have a qualifying event) 1) You may send additional contributions directly to BNY Mellon 2) Increase your payroll deduction up to the HSA limits if you elected an HSA contribution of at least $1,251 (single) $2,844 (double) or $3,524 (family) and have a catastrophic medical event You are responsible for your contribution limit Catastrophic Medical Event Confidential Information. Not for Distribution. Confidential Information. Not for Distribution.

  11. You may make other contributions into your HSA bank account directly, but they will not run through your paycheck To increase your election outside a Catastrophic Medical Event Additional amount for 2013 Catch up contributions > 55 $1000 To use another bank anywhere and not BNY Mellon Other contributions may be deductible on your tax return You may contribute for the current year by April 15th of the following year You are responsible for your contribution limit Other HSA Contributions Confidential Information. Not for Distribution. Confidential Information. Not for Distribution.

  12. HSA Eligibility and Contributions Confidential Information. Not for Distribution. Confidential Information. Not for Distribution.

  13. Example: You elect HDHP/HSA in 2013-14 You elect PPO Medical Plan in 2014-15 Switching from HSA Confidential Information. Not for Distribution. Confidential Information. Not for Distribution.

  14. Our HSA Partners Dexter Community Schools Currently THEhsaSOLUTION

  15. Bank of New York-BNY Mellon holds your bank account THEhsaSOLUTIONadministers the HSA plan The name will change to BenefitWallet, a Xerox company effective 10/1/2013 Web portal www.hsamember.com National leader in HSA administration since 2004 BNY Mellon/BenefitWallet Confidential Information. Not for Distribution. Confidential Information. Not for Distribution.

  16. 1) Complete open enrollment on NGS Coresource WebEnroll between May 22-May 31 at http://www.ngs.com/enroll Elect HDHP as your medical plan Elect how many dollars you want to put into your HSA 2) Mid-June you will receive a welcome kit from THEhsaSOLUTIONto “unfreeze” your new HSA bank account at BNY Mellon Agree to bank terms and conditions Respond to Patriot Act Screening, if you receive a letter from BNY Mellon Respond to OFAC anti-fraud screening, if you receive a letter from BNY Mellon Provide physical address if you have a PO Box No credit check, even if you are not eligible for a bank account you can have an HSA http://www.hsamember.com or by mail “Unfreeze” your bank account by September 1 to be eligible for payroll deduction and employer contribution 3) Fund your HSA Payroll deduction (14 pays from Sep 30 through April 15) Employer contribution ($30 Sept 30 and $30 Jan 31) Other contributions directly to BNY Mellon How do you enroll in the HSA? Confidential Information. Not for Distribution. Confidential Information. Not for Distribution.

  17. How do you use your HSA money? • 1) Directly from your BNY Mellon HSA bank account • Debit card (up to 2 will be mailed to you directly at no charge) • Checkbook (40 checks will be mailed to you if you mail back the Master Signature Card from the packet) • Direct bill pay feature on website http://www.hsamember.com • Not all medical expenses paid out of the HSA have to be associated with the HDHP (I.e. eyeglasses, dental) • 2) NGS Integration • Elect to participate at www.ngs.com • You may choose: • NGS has no access to your HSA account (default) • NGS accesses your HSA account and pays your employee balances on claims processed directly to the provider • NGS notifies you of a claim and you have 7 days to object to the payment, otherwise, NGS accesses your HSA account and pays your employee balance directly to the provider • NGS notifies you of a claim and you have 7 days to approve the payment, otherwise, NGS does not accesses your HSA account and you must pay your employee balance directly to the provider Confidential Information. Not for Distribution. Confidential Information. Not for Distribution.

  18. Eligible Expenses • Distributions are tax-free if used for qualified medical expenses (IRS Publication 502) for you, your spouse, your dependents • Meals (associated with receiving treatments) • Medicare Premium (Part A, Part B, Medicare+Choice) • Mentally Retarded (specialized homes) • Nursing Homes • Ophthalmologist • Optician • Optometrist • Orthopedic Shoes • Orthopedist • Osteopath • Oxygen and Equipment • Personal Care Services (for chronically ill) • Podiatrist • Post-Nasal Treatments • Prenatal Care • Prosthesis • Psychologist • Qualified Long-Term Care Services • Radium Treatment • Smoking Cessation Programs • Special Education for Children (ill or disabled) • Spinal Tests • Splints • Telephones/Television for Hearing Impaired • Transportation Expenses for Health Care • Treatment • Vaccines • Vitamins (if prescribed) • Weight Loss Programs • Wheelchair • Wig (hair loss from disease) • Acupuncture • Alcoholism Treatment • Artificial Limb • Artificial Teeth • Bandages • Breast Reconstruction Surgery (mastectomy) • Car Special Hand Controls (for disability) • Certain Capital Expenses (e.g., for the disabled) • Christian Science Practitioners • COBRA premiums • Contact Lenses • Cosmetic Surgery (if due to trauma or disease) • Crutches • Dental Treatment • Dermatologist • Diagnostic Devices • Disabled Dependent Care Expenses • Eyeglasses • Guide Dog • Health plan coverage while receiving unemployment • Hearing Aids • Home Care • Laboratory Fees • Lasik Surgery • Lead-Based Paint Removal • Learning Disability Fees (prescription) • Legal Fees (if for mental illness) • Life-Care Fees • Lodging (for out-patient treatment) Confidential Information. Not for Distribution. Confidential Information. Not for Distribution.

  19. HSA Structure • How it works • Tools for decision making • Options of electronic and paper-based account setup • Efficient funding via employer payroll or direct through account holders • FDIC-insured transaction account • Complimentary debit card provided • Comprehensive web • Complete IRS tax reporting • Integrated investment account • Investment wizard for investment guidance Investment Account Mutual Funds Debit Card Health Care Transactions Transaction Account Checkbook Online Bill Pay Funding

  20. BNY Mellon HSA Rates and Fees 22 investment options once you have $1,000 in the transaction account waived 1st deposit will be on October 1, monthly fee starts October 31 Don’t overdraw your bank account. NGS integration will not overdraw your bank account.

  21. UNLIKE YOUR Section 125 Medical Care reimbursement account you do NOT send in any receipts to anyone! You should keep all documentation to prove that your distributions were made for qualified medical expenses in the event your tax return is audited Your W-2 (from Dexter Community Schools) will show your contributions deducted from your paycheck and the employer contribution for the calendar year in Box 12 code W You receive a Form 1099-SA (from BNY Mellon) for distributions you made by debit card, check, or NGS claims paid directly You receive a Form 5498-SA (from BNY Mellon) for contributions you made through payroll and directly You file IRS Form 8889 with your Form 1040 tax return It is between YOU and the IRS Confidential Information. Not for Distribution. Confidential Information. Not for Distribution.

  22. Questions ? Confidential Information. Not for Distribution.

  23. Contact: • Sharon Raschke, Chief Financial Officer • Dexter Community Schools • raschkes@dexterschools.org • (734)424-4100 x1015 • Karen Anthony-Broutin • OakPointe Group • Kanthony@oakpointegroup.com • (810)220-8836 • The HSA Solution/BNY Mellon • M-F 8 am-11 pm (ET) • (888)478-2369 Confidential Information. Not for Distribution.

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