Health Savings Account & Health Care Account

All employees who enroll in a Gallagher BCBSIL medical plan option automatically get access to either a Health Savings Account (HSA) or a Health Care Account (HCA).

When you and your covered dependents have medical expenses, you will submit the claim as usual and BCBSIL will use funds from your HCA first to offset some of your deductible and prescription drug coinsurance costs. BCBSIL will do this automatically when you or your provider submits a claim.

Once the HCA funds have been exhausted, you will start paying out-of-pocket for the remainder of your deductible and coinsurance.

When you enroll in either of the Gallagher PPO + HSA plans for the first time, your account will be opened automatically with HSA Bank, a national leader in administering HSAs. Gallagher then deposits a company contribution, and any deferrals you elect from your own pay, into your account on a bi-weekly basis.

Each time you have a qualified expense (eligible care or services that you are allowed to pay for using your HSA), you decide whether to:

1. Pay out of your pocket and let your HSA grow, earning interest for future eligible expenses.
2. Pay for certain expenses using a Health Care FSA and let your HSA grow. You can use the FSA to pay for dental and vision expenses until your deductible is met.
   Use your HSA to pay for eligible medical expenses such as your annual deductible and coinsurance. Your HSA can also help pay for vision care, dental care and prescription drugs.

Your HSA is yours forever! Even if you leave Gallagher, your HSA and the money in it is yours to keep.

With your HSA, there are two ways you save on taxes:

1. The money goes into your account tax-free.
2. Withdrawals for qualified medical expenses—including any earnings from investing—are tax-free.

Annual contributions from Gallagher are:

• $450 if enrolled in employee only medical coverage
• $900 if enrolled in family coverage (family includes one or more covered dependents)

These amounts are prorated for new hires who enroll mid-year. Company contributions to the HCA are noted in your coverage record at BCBSIL when you first enroll; company contributions to the HSA are deposited over time on a bi-weekly frequency.