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West Bank is pleased to offer an important benefit for your employees. It's called a Health Savings Account (HSA). A West Bank HSA allows your exempt and non-exempt staff to combine a lower-cost high-deductible health insurance policy with separate tax-free savings accounts that they can use to pay deductibles and additional qualified out-of-pocket medical expenses.

Benefits

Lower premium costs

High-deductible insurance plans are less expensive. By moving premium dollars to individual HSAs you can lower your company's premium costs while your employees save money on their monthly premiums.

Funding with Pre-Tax Dollars

Your employees fund their West Bank HSAs with pre-tax payroll deductions, which lowers their gross taxable incomes, but not their effective income. By lowering gross taxable income, payroll taxes are lower to both the employee and the company. Your company, the employee's family members and any other person may also contribute to the employee's HSA.

The tax-free HSAs can be used by your employees to pay for qualified out-of-pocket healthcare expenses like co-payments, deductibles and services not covered by insurance. There are no taxes or penalties for funds withdrawn from an HSA to pay qualified out-of-pocket medical expenses.

The responsibility for monitoring the medical reimbursement and verifying if expenses are qualified shifts to the employee with an HSA. Your employees will receive monthly account summaries and year-end tax reports from West Bank. An HSA is owned by each employee and it is their responsibility to maintain.

HSA accounts enable your employees to be more selective with their health-care spending because costs are paid with funds from their personal Health Savings Accounts. Increased involvement allows employees to choose to reduce some non-essential healthcare services, thereby lowering their overall healthcare costs.

Unlike other health savings options, balances in a West Bank HSA are not forfeited when your employees retire or change jobs. West Bank HSA accounts transfer with your employee as they make these life changes. Over the years, these accounts can grow into substantial tax-advantaged savings accounts. By contributing to this account each year until age 65, your employees can build up balances for future medical needs or even retirement.

An interest-bearing checking account will be established for each participating employee, giving them easy access to funds with unlimited check writing privileges and a West Bank HSA debit card. Click here to view current interest rates and APYs.

Eligibility Requirements

Who is Eligible for a Health Savings Account?

If you currently have a qualified high deductible health plan, a West Bank HSA account allows your employees to save money for current and future qualified medical expenses. The HSA works similar to an IRA because the money contributed grows tax-free over time, giving your employees a new way to save for qualified medical expenses.

To be eligible for a West Bank HSA, your employees must meet all of the requirements. To determine eligibility, please see information below. Please advise your employees to consult their tax advisor to ensure eligibility.

HSA Eligibility Requirements. Employees must be:

• Covered under a qualified HDHP.*
• Not covered by another health plan that is not an HDHP. **
• Not enrolled for Medicare benefits.
• Not eligible to be claimed as a dependent on another individual's tax return.
• Have HDHP coverage on the first day of the month during the month that the account is opened.

*High Deductible Health Plan: In 2007, defined as a policy with an annual deductible of at least $1,100/individual or $2,200/family. The maximum out-of-pocket expenses are not to exceed the annual limits defined by the IRS. See your health insurance professional to determine if your insurance plan meets qualified HDHP requirements.

**Certain exceptions may apply.

Important Note: All references to taxes relate to federal taxes; state tax implications may vary by state. Consult with your tax advisor for state tax treatment to HSAs for the state in which you file taxes.

Contributions and Comparisons

Contributions

West Bank HSAs have the option of being funded by the account owner, a family member, employer or anyone else who chooses to contribute on the employee's behalf. Aggregate contributions are limited to the lesser of the amount of the policy's annual deductible or the maximum allowed by law. In addition, if you have employees who are 55 or older they can also make catch-up contributions. Contributions can be made to the account by either making a deposit or transferring money from another account. Contributions may be made until April 15 for the previous calendar year, including any extensions.

HSA Contribution Limits*

*Limits subject to change. The maximum allowed by law.

How Health Savings Accounts Compare with other Medical Savings Plans:

*For qualified withdrawals

West Bank HSA Account Fees

Employee Account Fees:

• No minimum balance
• Interest paid with tiered rates. Click here to view current interest rates and APYs.
• $2 monthly fee; waived if balance exceeds $5,000
• Unlimited check writing and no annual fee for West Bank HSA debit card

Company set-up fees:

• 0-50 Accounts - $100
• 51-100 Accounts - $175
• 101-250 Accounts - $300
• 250 + Accounts - $450