Page 6 - Palomar EE Guide 01-19 FINAL

Health & Wellness

Medical Benefits (continued)

HDHP Plan
(Non-Union Employees Only)
The High Deductible Health Plan (HDHP) offers you lower monthly premiums and typically costs less than traditional plans. When paired with a
Health Savings Account (HSA), you have several tax advantages. Your HSA contributions are not taxed, your interest earned on your HSA balance
is tax-free and the HSA funds you use for qualified medical expenses are not taxed.* You may participate in an HSA until you reach age 65, unless
you opt-out of Medicare (including Part A)

*HSAs are not taxed at a federal income tax level when used for qualified medical expenses.

Employees that enroll in the HDHP will receive a deposit by Palomar Health into their HSA at the beginning of the plan year or upon
eligibility* of $500 if enrolled in Employee Only coverage or $1,000 if enrolled with one or more dependents.

*For mid-year enrollees, contact your Benefits Representative for your pro-rated contribution amount.

With this plan you are required to select a PCP as the medical care you receive will be from Sharp Health Plan physician groups and Sharp Health
Plan providers. If no PCP is selected one will be assigned to you. You may change your PCP at any time. When you access care, you initially
will need to pay the cost of services rather than a co-pay. Once you have met your annual deductible (see table), then the plan benefits go into
effect – you simply pay the co-pay when you access care. Once you have met your annual out-of-pocket maximum (see table), then your HDHP
will pay 100% of all covered services for the remainder of the year.

To pay for your health services you can use funds from your HSA, or you can allow those funds to accumulate and grow and pay for services
from another account. Funds in your HSA roll over from year to year, so unlike a Flexible Spending Account (FSA), your HSA balance is owned
by you, rolls over, and remains available to pay for qualified expenses even if you turn 65, retire or leave Palomar Health.

An HSA enables you to maximize your savings while building a reserve for the future. You can make tax-free contributions right from your
paycheck into your HSA. If you have Employee Only coverage, you may contribute up to $3,500 (when combined with the employer
contribution). If you have Employee + 1 or more dependents, you may contribute up to $7,000 (when combined with the employer
contribution). This account is administered by our financial partner, HealthEquity. A debit card will be issued to you (and one additional card
for a covered dependent) at no cost to use to pay for qualified medical expenses. Customer Care for your HSA at HealthEquity is available
24/7 at 866-346-5800 and at memberservices@healthequity.com.

HMO Plan
The Health Maintenance Organization (HMO) plan requires that you choose a primary care physician (PCP) or medical group within the
Performance network. If no PCP is selected one will be assigned to you. You may change your PCP at any time. Sharp Health Plan providers
are located throughout San Diego and southern Riverside counties. The Plan has several physician groups from which you and each of your
dependents will choose your Primary Care Physician (PCP). These groups include all of the Sharp providers, Arch Health Partners, Graybill,
SCMG (Sharp Community Medical Group) and a Children’s physician group. You receive specialty care and access to hospitals and urgent care
centers from the providers that are affiliated with your medical group. When you access care, you simply pay a $20 co-pay for the PCP visit, if
applicable. You also have access to any of the pharmacies in Sharp Health Plan’s network. The HMO network provides access to 1,600 primary
care and specialty physicians and 10 hospitals including Palomar Health and Sharp HealthCare facilities and medical groups. To find a doctor
in the Sharp Health Plan Performance Network, you can visit www.sharphealthplan.com.

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