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Benefits

Medical Insurance

How the Health Savings Account (HSA) Works

A Health Savings Account (HSA) is a tax‐advantaged account that you own. You may elect to make contribu ons into your account
up to IRS maximums. IRS maximums for 2018 are $3,450 for employee coverage and $6,900 for family coverage. If you are 55 years
of age or older in 2018, the IRS also permits you an addi onal catch‐up contribu on of $1,000. The por on of your paycheck that
you contribute to your HSA will be taken out before you pay federal income taxes, Social Security taxes and most state taxes
(excluding state taxes in AL, CA and NJ). Any contribu ons you make can be increased or decreased over the course of the year.

You can decide how to manage your money. The money in your HSA is yours to save and spend on eligible health care expenses
whenever you need it, whether in this plan year or in future plan years. You can use the funds in your account to pay tax‐free for
qualifying out‐of‐pocket Medical, Dental and Vision expenses such as deduc bles, coinsurance and copays. Your account balance
earns interest and the unused balance rolls‐over from year to year. The money is yours to keep even if you leave Confie, no longer
par cipate in a high deduc ble health plan (like the HSA plan), or re re. You may con nue to make contribu ons to your HSA if you
enroll in another qualified high deduc ble health plan, or elect COBRA con nua on coverage of your HSA coverage if your
employment terminates.

Eligible HSA Expenses Include:
Medical Dental Vision Other
 Doctors  Podiatrists  Den sts  Optometrists  COBRA Premiums
 Nurses  Psychiatrists  Orthodon sts  Ophthalmologists  Long‐Term Care
 Prescrip on Drugs  Psychoanalysts  Periodon sts  Exams  Premiums
 Hospital  Psychotherapists  Teeth Cleaning  Glasses  Medicare Premiums
 Lab work  Ar ficial Limbs  X‐Rays  Contact Lenses
 X‐Rays  Insulin Treatment  Fluoride  Lasik Surgery
 Ambulance  Alcoholism  Treatments
 Durable Medical Treatment
 Equipment (wheel  Steriliza on
chairs, pumps, hearing  Acupuncture
aids, crutches, etc.)  Chiroprac c

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

HSA Tax Savings Comparison Without the HSA With the HSA

Gross Annual Pay $45,000 $45,000
Employee pre‐tax HSA contribu ons Not Elected $2,500
Used to pay for annual healthcare expenses (deduc bles, copays,
prescrip on drugs, dental expenses, vision expenses, etc.)
Taxable Gross Income $45,000 $42,500
Payroll Taxes (at 30%) $13,500 $12,750
Employee‐Funded HSA Bank Account $0 $2,500

Net Pay $31,500 $32,250
Annual Savings with Pre‐Tax HSA Deduc on $0 $750

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