Important Information Regarding HSAs. The PPO Savings Plan is not a “Health Savings Account” or an “HSA”. It is designed as a “high deductible health plan” that may allow Employers, if they are eligible, to take advantage of the income tax benefits available when they establish an HSA for their employees. The money put into the HSA is used to pay for qualified medical expenses subject to the deductibles under this Plan. NOTICE: Blue Shield does not provide tax advice. If Employers intend to purchase this Plan to use with an HSA for tax purposes, they should consult with their tax advisor about whether they are eligible and whether their HSA meets all legal requirements. The HSA is a governmental pilot program that is continued year to year at the discretion of Congress. Blue Shield has designed this Plan to meet government requirements for a high deductible health plan to be used in conjunction with establishing eligibility for HSA tax benefits. Although Blue Shield believes that this Plan meets these requirements, the Internal Revenue Service has not ruled on whether the Plan is qualified as a high deductible health plan. Should an Employer purchase this Plan in order to obtain the income tax benefits associated with an HSA and the Internal Revenue Service were to rule that this Plan does not qualify as a high deductible health plan, the Employer and employees may not be eligible for the income tax benefits associated with an HSA. In this instance, they may have adverse income tax consequences with respect to their HSA for all years in which they were not eligible. However, if there were such a ruling, or if government requirements for a high deductible health plan change, Blue Shield intends to amend the PPO Savings Plan prospectively, if necessary, to meet the requirements of a qualified plan. A change in the Plan's Dues may also be required as a result of a change in the Plan. To learn more about Health Savings Accounts, eligibility and the law's current provisions, the Subscriber can consult with a financial advisor. (GPHSA) PART I. INTRODUCTION 4 PART II. DEFINITIONS 4 PART III. ELIGIBILITY 5
