Spending Accounts Overview & Conversion

The Next Generation of Spending Accounts

Our new spending account products are closely integrated with our medical products and services.

They provide plan design flexibility and ease-of-use to employers while making it easier for members to manage their benefits and make informed decisions.

Product FeaturesA robust set of capabilities that make it easier for members and employers to optimize spending account usage.

Employer Enhancements

• Streamlined enrollment

• New online capabilities, including robust online reporting

• Convenient ways to fund accounts

• Simplified billing

• Consolidated plan activity statement

Employer Portal Access

• Enhanced portal available at plan renewal

– Gateway to spending account reporting, billing, and group administration

• Spending accounts require additional access permissions to access portal

– Portal of most value for HRA, FSA, and HSA with employer contributions

– Information provided in second employer mailing

– Forms will also be available in ROAM

• Broker can have access to spending accounts with appropriate approvals

Employer PortalThe employer portal offers a direct view into spending account elections, accounts details, status, and reports.

Reporting Reports tab provides quick access to your Spending Account reports.

New reports include:

•Benefit summary report

•Participant deduction details report

•Group payment summary report

•Participant payment details report

•Payment register report

Member Enhancements• Spending accounts are integrated into

the member portal

• Pay-the-provider feature

• Rapid claim submission and reimbursement

• Content-rich plan activity statement

• Integrated feature-rich HSA from Bank of America with no monthly member fee

Spending accounts incorporated into the member portal.

Spending Accounts

Information on EOBs, claims, spending accounts, and payments are consolidated in the Plan Activity Statement, a single, user-friendly statement.

Plan Activity Statement Consolidates Information

The Bank of America HSA

• Integrates into member portal• Integrated customer support• No monthly member fee• Investments available once $500 accrued

ConversionsTransition processes for existing customers to our new spending account solutions

Spending Account Conversions

• Spending Account conversions align with the broader migration initiative.

• If spending accounts require additional steps, there are specific communications that will occur to employers and members.

Conversion of Existing FSA / HRA Customers

• The employer controls the spending account funding and design. The conversion of accounts and services aligns with the medical migration.

• Spending account conversions are part of open enrollment meetings with IBC.

• IBC has communications materials and/or content to facilitate the migration.

Conversion of HSA Customers

The HSA accounts and any balances at Bancorp will continue to be available.

– Members can continue to use their HSA account and any investment accounts.

– Customers can opt to work directly with Bancorp on accounts/contributions.

Bancorp HSAs are not part of the new, integrated experience.

– IBC will no longer send member enrollments to Bancorp (manual or EDI)

– IBC and Bancorp will no longer reconcile accounts

Changes that will occur with Bancorp and existing HSAs

Conversion of HSA Customers

• By default, the decision to open an HSA account is member driven.

• At plan renewal, members will have a link they can click to initiate account opening at Bank of America.

– Link is not available before plan renewal.

• After opening, members receive a welcome kit and an HSA debit card.

– Cycle takes 2-3 weeks, depending on how quickly the member acts.

• Customers on the “exclude” list will not be included in the HSA conversion process.

What steps will be taken with Bank of America?

Conversion of HSA Customers

• Employers who do not make contributions will not be impacted.

• Employers begin making contributions once accounts are open.

• The Employer Portal is the gateway to all employer activity.

• Employers will have the option of automatic or file-fed contributions.

– There is a dedicated HSA contribution team available for support.

• Online reporting allows the employer to see the status of member accounts.

Employers making contributions to the HSA (employer or payroll)

HSA Communications

• HSA-specific mailings to customers and members currently in a QHDHP and with Bancorp HSA.

• Customer outreach

– Before purchasing a medical plan: A letter and FAQ that explains the options and processes and advises that there will be outreach to members.

– Post plan purchase: As appropriate, communication with detailed instructions how to make employer contributions. Will also include information on portal access.

• Member outreach

– Post QHDHP election: Information about HSA options, how to open a Bank of America HSA, and information on how to consolidate HSA funds.

• Producing agents will be informed through e-bulletins.

IBC outreach will keep employers and members informed

HSA Conversion TimelineOct Nov Dec Jan

10/25 11/1 11/15 11/29 12/6 12/13 12/20 12/27 1/1 1/15 1/29

First Employer Letter & FAQs

Second Employer Letter:

•Checklist•Service agreement•Portal access information•Link to Contribution and Reporting Guides

Member Notification Letter

Member Portal AccessMembers begin opening HSAs

Employer Portal Access

HSAs open

Customer Communications

Member Communications

Employer Contributions

Spending Account Considerations For successful rollout of spending accounts

21

Open Enrollment during ConversionSize of Group

Setup Options Spending Accounts Options

2-50 •Paper application•Through ROAM

HRA Based on medical electionHSA Member elects after plan renewal after

enrolling in QHDHP

51-99 •Paper application•Spreadsheet*•Through ROAM

HRA Based on medical electionHSA Member elects after plan renewal after

enrolling in QHDHP

100+ •EDI•Paper application•Spreadsheet*

HRA Based on medical electionHSA Work with IBC representativeFSA Work with IBC representative

Spending Account Setup Timeline

• Timing varies by product and options

• Debit card in hand for plan renewal date requires the greatest lead time

RENEWAL Jan. 1, 2014

INFO NEEDED & RECEIVED NO LATER THAN

Information Needed for Setup# of Business Days to Process

Drop Dead Date to Receive/Start

Provided by Client

Group 12-18 Nov. 18, 2013

Enrollment 3-5 Dec. 11, 2013

Other Setup

HSA Opening 3-5 Dec. 16, 2013

Debit Card 7-10 Dec. 26, 2013

TOTAL LEAD TIME 45 days Jan. 1, 2014

Spending Account Invoicing Is Through e-Bill• Employers must have access to e-bill.

• Two types of invoices:

– Administrative services invoice

• Monthly invoice based on participation*

– Funding invoice

• Weekly invoice to cover claims IBC has paid

• Only for HRA and FSA

* Does not apply for HRA/HSAs in the 2-50 market

Payment with e-

Bill

View invoice summaries

online

Pay bills online (one-time, automatic, recurring)

Summary and detail-level

reports

Enhanced notification

system

Simple, customizable

and easy payment process

Spending Account FeesGroup Size Single Account

2 - 49HRA or HSA fee included

51 - 249 $3.95

250 - 499 $3.85

500 - 999 $3.65

1,000 - 2,499 $3.45

2,500 - 4,999 $3.25

5,000 - 9,999 $3.05

10,000+ $2.85

• Fees are Per Account Per Month (PAPM)

- FSAs Only available for groups of 100+

- FSA (health and/or dependent care) Count as one account combined

• Set up or Renewal Fee - No Charge

• Monthly Minimum - None

• External Carrier Files - $750 per file