Considering a Considering a Health Savings Health Savings Account?Account?

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Our Experience

o HSA Bank has nearly ten years of HSA-industry experience• Offered Medical Savings Accounts beginning in 1997

(HSAs in 2004)o HSA Bank’s rapid expansion led to our

acquisition by Webster Bank, N.A.• One of the 50 largest banks in U.S. with more than

$18 billion in assetso Webster Bank is committed to providing HSA

Bank with the resources for continued growth

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Our Experience

o Maintain relationships with over 175 health plans/TPAs

o Work with more than 10,000 employer groupso Serve more than 150,000 accounts in all 50 stateso More than $265 million in deposits

• Additional $23 million in brokerage accountso In February 2006, a study conducted by ICDC

found HSA Bank was the leading provider of HSAs in the nation regarding HSA volume and deposits

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Company Mission

“High Tech, High Touch, High Satisfaction”

• Enhanced automation of processes and services

• Continued efforts to ensure quality in customer service

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Electronic EnrollmentOriginated electronically, e-sign compliant

Electronic Data files created

Health plan enrollment

data

HSA Enrollment

Data (PGP

Encrypted)

Health Plan processes HDHP

enrollment

HSA Bank FTP Server

Account Opening Procedures InitiatedVerification of HDHP status

MemberElectronic Enrollment

Tool

Authorizes HDHP and

HSA through e-sign

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Electronic EnrollmentOriginated from Paper

Electronic Data files created

HSA Enrollment Data (PGP Encrypted)

HSA Bank FTP Server

Account Opening Procedures Initiated

Member

Complete and Sign

Paper Application

Can a tif image be created of the signed

application?

Tif image of app

Paper Applications

Yes

No

HSA Bank

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Electronic EnrollmentDate file to pre-populate application

Electronic data / Census file created based on HDHP

enrollment

HSA Enrollment

Data (PGP

Encrypted)

HSA Bank FTP Server

Health Plan or

Employer

HSA Bank pre-populates app Member

Signs and Returns to HSA

Bank

Account Opens

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HSA Bank Group Online Enrollment

EmployerHSA Bank

Website (Group set-up)

Enrollment type

Payment of Fees

Immediate

Batch

By Approval

Upload EMPLOYER Census File

(SSN required)

Employer Login

Employer

Employee

Custom Link for Employees

Part 1: Employer Set-up

Part 2: Employee Enrollment

EmployeeCustom

Enrollment Website for Employees

Processed based on enrollment

type

Personal Info

Acct. Options

Esign

Account Opens

Electronic and/or Paper

Welcome Kit

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HSA Bank Individual Online Enrollment

Individual

HSA Bank’s Online Enrollment Website

Personal Information

Account Options

Esign

Account Opens

Electronic Welcome Kit

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Paper Enrollment

Step 1: Complete the proper HSA Bank forms

Step 2: Mail the forms to HSA Bank with the initial contribution, set-upand check fee (if applicable)

Step 3: Accounts open in 1-2 business days of receipt or the effectivedate of the plan, whichever is later

Step 4: Within 2 weeks, the accountholder will receive a welcome kit,debit cards (if applicable) and checks (if applicable)

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Employer Contributions

o Online Contributions1. New in-house system in Employer Login area2. Provided with a list of all employees tied to Federal ID # 3. Column after each name for ER, EE, EX

o ACH Direct1. Employer sends ACH direct to employee’s accounts2. Utilize discretionary data field in ACH file to code contribution sources

o Company ACH or Wire Transfer + File1. Company send one ACH file or Wire Transfer2. The transaction file dictates how the money is distributed to each

account

o Submit a CheckWith Contribution Form (or similar format)

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Employee Contributions

o Online Contributions• Recurring or one-time, as needed

o Check• With Contribution Form tear-off• With Deposit Ticket

o Automatic Transfer• Bank originated ACH

o Recurring

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Financial Options

o Interest bearing “bank” account• All accounts are opened as an FDIC-insured bank

account with current annual percent yield ranging from 1.00% to 4.60%

o Investment Options• Default: Self-directed brokerage• Mutual fund selection• Full-service brokerage

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Self-Directed Brokerage

o Ameritrade Corporate Services• Access to stocks, bonds and over 11,000

mutual funds• Trades are made online or over the phone• Accountholder must contact HSA Bank to

transfer funds from HSA to brokerage accounto HSA Bank intends to release a transfer system to

allow accountholders to transfer funds from their HSAs to their brokerage accounts online this summer

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Mutual Fund Selection

o Devenir Investment Advisors• Selection Options

o Employer can choose to offer a standard selection of historically top-performing mutual funds

o Employer can choose to offer same funds as included with their 401(k)

• Trades are completed online through HSA Bank’s Internet Banking system

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Full-Service Brokerage

o Transamerica Financial Advisors (TFA)• Agents licensed with TFA can assist their

clients with HSAs at HSA Bank invest HSA funds in TFA investments

• Accountholders request the money be transferred to their TFA brokerage account

o HSA Bank is currently in negotiations with several other broker dealers to provide this service to their broker’s clients.

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Distributions

o Debit Card from Visa • POS with signature

(no transaction fee)• ATM with PIN ($1.50 transaction fee)• POS with PIN ($1.50 transaction fee)

o Checks $7.95 for 50 checks (no transaction fee)

o Online Transfer• From HSA directly to external account

o Withdrawal Forms($4.00 transaction fee)

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Distribution Design

DoctorVisit Submit

Claim

InsurerApplies network

discountsSendsEOB

Paydoctor

Fillprescription

Pay Pharmacy

Scenario A

Scenario B

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Service & Support

o Dedicated Business Relations: Each relationship is assigned a dedicated coordinator to assist the relationship and its employer clients.

o Regional Vice President: Local contact to assist the relationship and its employer clients.

o Client Assistance Center:Our client assistance center provides dedicated customer service to accountholders and prospective accountholders.

o Spanish Language Support:Our client assistance center and business relations teams provide Spanish language support to relationships, accountholders and prospective accountholders.

o Experience:Our Business Relations Coordinators and Client Assistance Center receive the most comprehensive and up-to-date HSA training in the industry. Our representatives have a strong customer service background and many have worked in the financial, insurance, and benefits administration industries.

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Reporting Capabilities

o Accountholder• Monthly account statements• IRS reporting• Email confirmation of account opening and ongoing activity

o Employer• Email confirmation of deposits• Customized employer guide• Email updates on consumer-driven health care and HSA account

featureso TPA/Carrier (Additional data feeds and information needs negotiable)

• Data feeds with account stats (Ex.- Ave. balance, total distributions/contributions, max. dist., etc)

• Quality assurance statistics and data (Ex.- Phone stats, fulfillment guarantees, etc.)

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Calculation Tools

o Contribution Calculator• Calculates the prorated contribution limit based on the

number of months you are effective under a health plan. o Tax Savings Calculator

• Calculates the tax-savings based on pre-tax contributions.

o Future Value Calculator• Calculates the future value of the HSA based on your

annual contributions, expenses, and anticipated growth. o Health Plan Comparison Tool

• Compares HSA and non-HSA plans based on information provided by user.

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Website

o HSA Bank has created a website to serve the specific needs of and provide relevant information to:• Prospective accountholders• Accountholders• Employers• Insurance agents

23

Internet Banking

o Provides account information, including:• Year-to-date information• Online Address Changes• Download transaction history• View Cancelled Checks

o Access Online Contributionso Further enhancements coming soon:

• Online Bill Pay Option

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Educational & Training Resources

o Comprehensive Training Options for you and your clients• FLASH Animation presentation• Customizable PowerPoint presentations• Webinar presentations• In person training seminars

o Sample Topics• What can an HSA and HSA Bank offer? (Staff training)• Why choose an HDHP and HSA? (Employers &

Employees)• How to design your plan offering (Employers)• What is an HSA? (Basic and Advanced)• How to use your HSA (Individual)

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Thank you for considering…