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HEALTH SAVINGS ACCOUNTS

HOW THE HSA WORKS
A Health Savings Account (HSA) is a tax-advantaged account that you own. You can make payroll contributions into
your HSA account tax-free, up to the IRS maximum. Your contributions earn interest and can be used to cover a wide
range of healthcare expenses. Whatever amount that remains in your account at the end of the year “rolls-over.” Most
importantly, your HSA is portable and offers you freedom for the future.

The HSA Medical option includes a high deductible health plan. After the deductible has been satisfied, you will pay the
copays and coinsurance shown in the benefit summary up to the out-of-pocket maximum. You will receive a debit
card that you can use to pay providers. To get the most effective use of the debit card, we recommend that you only
use your debit card to pay providers after your claim has been submitted to the insurance company and you receive
your Explanation of Benefits (EOB). Your PPO discount is applied real-time at the pharmacy making this a great place
to use your debit card.

Eligible HSA Expenses Include:

MEDICAL DENTAL VISION OTHER
Doctors Psychiatrists Dentists Optometrists COBRA Premiums
Prescription Drugs Psychoanalysts Orthodontists Ophthalmologists Long-Term Care Premiums
Hospital Psychotherapists Periodontists Exams Medicare Premiums
Lab work Artificial Limbs Teeth Cleaning Glasses
X-Rays Insulin Treatment X-Rays Contact Lenses
Nurses Alcoholism Fluoride Treatments Lasik Surgery
Ambulance Treatment
Durable Medical Sterilization
Equipment Acupuncture
Podiatrists Chiropractic

Ineligible HSA expenses include expenses that are not medical or health related as well as cosmetic surgery.

HSA SAVINGS COMPARISON:

John has elected to contribute $2,000 annually toward his HSA bank account.

WITHOUT THE WITH THE
HSA HSA

Gross Annual Pay $60,000 $60,000
Employee Pre-Tax HSA Contribution Not Elected $2,000
Taxable Gross Income $60,000 $58,000
Payroll Taxes (at 30%) $18,000 $17,400
Net Pay $42,000 $42,600
Annual Savings with Pre-Tax HSA Deduction $0 $600

Discovery Benefits is the administrator of our HSA plan through Razer. When you enroll in the Aetna HSA PPO Plan,
a tax advantaged Health Savings Account (HSA) will be automatically created for you. You can use your Discovery
Benefits member online account to manage your Discovery Benefits account.
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