What is a Health Savings Account HSA An HSA is

							                   What is a Health
                   Savings Account
                   (HSA)?
                   An HSA is an account that a person can put a limited                      HSA Compatible Plans:
                   amount of money into to save for medical expenses not
                   covered by their Consumer Directed Health Plan                            Avalon Focus Group and Avalon IFOCUS Individual
                   (CDHP). HSAs provide security, flexibility, savings,                      HSA Health Benefit Plans
                   greater consumer control, ownership, and the portability
                   to take your account with you. By having an HSA, a                            PPO Plan designs starting at a $1,250 deductible
                   person can also gain certain tax advantages such as tax
                                                                                                 Compatible with a third party administered HSA
                   deductions when contributing to the account, tax-free
                   earnings through investments and tax-free withdrawals                         Tax advantage option through the employer
                   for qualified medical expenses.                                               with the setup of an HSA
                   The account can be setup:
                                                                                                 One stop setup and management of HSA by
                       When an employee has a High Deductible                                    Avalon Healthcare
                       Health Benefit Plan (HDHP)                                                On-line support services such as doctor, hospital
                       If no other first dollar medical coverage                                 and pharmacy directories
                       is provided
                                                                                                 A live voice to answer questions
                       If a person is not enrolled in Medicare
                                                                                                 Password secure access to your private accounts
                       If a person is not claimed as a dependent                                 through the Avalon website
                       on someone else's tax return


                   HSAs are portable, meaning that account holders can                       HSA Bank —
                   keep the HSA if they change jobs, become unemployed,
                   move to another state or change marital status. HSAs                      After selecting a Health Savings Account Health Benefit
                   must be used with a compatible HDHP.                                      Plan option, Avalon employers and Members will need
                                                                                             to find a qualified bank to manage their HSA account.
                   Contributions to an HSA can be made by both                               To make this process simple and easy, Avalon has
                   employers and employees. For Individual HSAs,                             teamed up with HSA Bank, an on-line banking
                   the Member is responsible for making their own                            service exclusively dedicated to helping people
                   contribution. They are easy to open, and Avalon                           manage their HSA. Signing up on-line is simple.
                   Healthcare can assist in setting up coverage.


                                                                                                  To learn more about HSAs including answers to
                                                                                                frequently asked questions visit the Avalon website
                                                                                                   and click on links to get to the U.S. Treasury
                                                                                                    Department's full service website for HSAs
                                                                                                                  and HSA Bank


                                                                                                                      Avalon Healthcare
                                                                                                                      Rocky Point Centre
                                                                                                            3030 North Rocky Point Drive West #800
                                                                                                                    Tampa, Florida, 33607

                    This chart indicates how much money a Member can put into an HSA to                  877-280-0010    www.avalonhealthcare.com
                    offset healthcare costs not covered by their HSA compatible HDHP Plan.



                    To learn more about Avalon's HSA program visit:
                             www.avalonhealthcare.com/groupplans

                       This is a benefit summary. It is intended for informational
                      purposes only, and does not represent a full description of
                      benefits provided. For a complete description of benefits
                          and exclusions, please refer to the insurance policy
                                   certificate and schedule of benefits.
                                                                                                                                    Avalon Healthcare, Inc.
AVAhsa03 (07-07)