Page 6 - American Advisors Group Benefit Guide 2_NonCA

EMPLOYEE BENEFITS 6

MEDICAL GLOSSARY

As you review your medical options, it is important to understand the costs associated with each plan. Your individual situation will
determine which of these costs has the most influence on your plan selection.

Employee Contributions:
The Employee Contribution is the amount you pay through payroll deductions for the plans you choose. The Employee Contribution
amount depends on which plans you choose and whether you are covering dependents. Employee contributions are deducted from your
paycheck on a pre-tax basis. Premiums for non-IRS tax dependents will be deducted on a post-tax basis.

Deductible:
A deductible is the amount you must pay before the medical insurance begins to pay any benefits, unless the deductible is waived.

Copay:
A copay is a set amount you pay for a specific service, such as an office visit or a prescription.

Coinsurance:
Some plans require that you pay a percentage of the cost of a service. This percentage is coinsurance.

Out-of-Pocket Maximum:
This is a very important fact to understand. This annual maximum limit protects you from unlimited medical expenses. The maximum is the
most you will have to pay for eligible expenses during the plan year. Once you meet the out-of-pocket maximum the plan will pay 100% of
all eligible expenses.

Your Costs:
Out-of-Pocket costs along with your Employee Contributions comprise your total health care costs.

Annual Out-of-Pocket Maximums

In-Network
Out-of-Network
PLAN (Single / Family) (Single / Family)

HSA 1500 $4,500 / $9,000 $27,000 / $54,000
HSA 3500 $6,000 / $11,000 $12,000 / $22,000
PPO (OAP) $6,000 / $12,000 $12,000 / $24,000