TLC Vision Flexible Spending Account

1. FSA usage can make Lasik even more affordable. TLCVisionFlexible Spending Account FSA Overview

2. Flexible Spending Accounts FSAs – What are they? • FSA/Section 125 Plans are employer-sponsored programs. • FSA allow employees to set aside pre-tax monies from their gross income to cover medical expenses partially covered or not covered by their basic medical plan. • FSA plans run on a calendar year.

3. Flexible Spending Accounts Employee Advantages FSA participation lowers the employee’s federal, state & FICA taxes FSA participation lowers employee’s taxable income Employees become their own financial planners Employees learn to plan in advance for elective services like LASIK Expenses are paid on a pre-tax basis

4. Flexible Spending Accounts Lower Social Security taxes paid on behalf of employees participating in FSA FSA makes benefit cost-sharing more acceptable to employees FSA increases employee awareness & appreciation of benefits provided to them Employer Advantages

5. Flexible Spending Accounts Employee Savings Illustration The net cost of LVC budgeted with pretax FSA dollars = $3,262 [$4,500 discounted rate - $1,238 tax savings] *Illustration assumes state tax calculation for NYS.

6. Flexible Spending Accounts Points to consider before enrolling in a FSA • Employees should be conservative since, by law, they cannot change their FSA amount during the plan year • “Use it or lose it” rule applies • Employers can now implement a “Grace Period” which extends the use of these funds for an additional 75 days. This is not mandatory it is the choice of the employer/ • Employer can establish a FSA dollar cap

7. FSA Guidelines • Open Enrollment periods: About 75-80% of companies have fall or year end enrollment. Others have mid-year (June/July) enrollment. • Contribution Amounts: 70% of companies allow for the maximum yearly contribution of $5,000. Others average a $2500 cap. Caps reduce the risk to employers due to employee turnover. • Spending guidelines: Most companies allow fund withdrawal without accrual. However, a few companies may require a minimum account balance before withdrawal

8. Flex Account Marketing Initiatives • Target Largest Local Employers • Identify the largest 3-10 local employers • Contact the employers’ benefits department to learn about FSA programs and timetables • Company/Organization Lead Generation • Harvest existing patient database to obtain employer information (if available) • Purchase a list • Court FSA management companies to obtain customer list (suggested) • Place ads in local journals, publications, etc…(suggested) • Place a localized Google AdWord ad • Company/Organization Lead Development • Direct mail / email to lead list • Phone call follow-up to lead list (suggested) • Gain approval for marketing initiatives (goal)

9. More about Google AdWords . . . . • How much does a click cost? You have two bidding options: You can set your own maximum click price yourself, or you can let the AdWords Budget Optimizer set your bids to try and find you the most clicks possible within your budget. • If you set your own maximum Cost-per-click (CPC), you might decide to pay as little as 5 cents each time a potential customer clicks your ad. You can also decide to pay $1.00 or much more for each click. As you’d expect, with a very low bid your ad may not show very often, while with a very high bid your ad may show quite a lot. • Your daily costs are determined by the prices you set and the number of clicks your ad receives. If you set a price of US$0.05 per click, for example, and your ad is clicked 25 times in one day, then your total charges for that day would be US$1.25. • Monthly Cap In the same way, you might set a total monthly budget of $30.00, which is about a dollar a day, then your ad will be halted each day after it collects a dollar's worth of clicks (20 clicks at five cents each, for example). • Cancel / Change Anytime You can cancel the program, or change your cost per click and your budget at any time -- even several times a day if you like. • Your ad will compete with ads from other advertisers who also have set their own prices. Sample Ads You Can Use Use FSA for Lasik Make an appt to see if you’re a candidate and can set aside FSA $ www.AdvantageOptometry.com Flex Acct for Vision Set aside FSA $ for Lasik surgery or contacts. Make an appt today! www.AdvantageOptometry.com Use Your FSA Wisely Set aside FSA $ for Lasik surgery or contacts. Make an appt today! www.AdvantageOptometry.com Flexible Spend Wisely Make appt for a pre-surgery consult today before you set aside FSA $. www.AdvantageOptometry.com

10. Using Google AdWords for FSA advertising • Local Online Ads. You can now advertise on Google to just web visitors in your local area. • No website? You can create a webpage on Google, through the AdWords program without knowing html or any special software. • Signup fee. You'll be charged a modest one-time, $5 activation fee . • Cost per Click (CPC)After you pay the $5 activation fee, you only pay when people click on your ad. • Budget Cap. Google offers an affordable program for small advertisers. You can set a monthly cap of $10. There is no long-term contract or minimum spending limit for AdWords. And you can change your program at any time. • Benefit Enrollment Season Flexibility You might set a low, monthly cap of $5-$10 / month year-round. During Benefit enrollment season (typically the Fall), you could increase spending to $50/month and then discontinue advertising or cut back to $5/ month.

11. Flexible Spending Account (FSA) FAQ • Can I use my FSA with refractive surgery? Yes, refractive surgery is one of many medical procedures approved by the government for FSA use. • How do I know if I have a FSA? Check with your benefit manager. Be sure to ask about maximum contribution amounts and open enrollment dates. • What if I have some money left over this year? Depending on the amount, you may want to consider having one eye treated this year and one eye treated next year. • How can I assure myself the the money I plan for Laser vision correction is used? First, have a full evaluation performed to make sure you’re a candidate. Then, schedule surgery during the planned FSA year. • How do I get reimbursed? Most plans require a receipt of payment. Submit your surgery receipt to your benefit manager (or FSA management company) to receive your reimbursement check. • How long does it take to get reimbursed? Most FSA management companies can process checks within 2-3 business days. Check with benefit manager or FSA management company • What will I need for my evaluation? It would be best if you could have proof of FSA available, including amount planned and current amount used. • Are there any costs to me for using/planning an FSA? No, FSAs are voluntary benefits employers offer employees.

12. Telephone / Receptionist Training All staff receiving inbound phone calls should: • Be able to answer basic questions about FSA utilization • Training Tool: FAQ sheet • Be able to forward non-converted FSA consumer information to database keeper • Collect Email address, employer name and demographic information • Be able to solicit FSA information from all inbound calls • Routinely ask inbound callers if they have FSA benefits • Forward leads with FSA’s to database keeper via email

13. TLCVisionFlexible Spending Account Thank You