This document provides an overview of Health Savings Accounts (HSAs) and the CelticSaver HSA Health Plan. It discusses that HSAs help address the growing number of uninsured, rising healthcare costs, and increasing popularity of consumer-driven health plans. It then describes the two components of an HSA program - a qualified high deductible health plan and a health savings account. The rest of the document focuses on detailing the specifics of the CelticSaver HSA Health Plan, including deductible and coinsurance options, as well as an overview of Celtic Insurance Company's other product offerings.

1. Health Savings Accounts
&
the CelticSaver HSA Health Plan
CelticSaver HSA3.0 Consumer 3/09

2. This presentation is designed to
give you an overview of the
CelticSaver HSA Health Plan and
Health Savings Accounts (HSAs).
Your agent—and Celtic
Insurance Company—are
committed to serving you.
Thank you for taking time to
see how the CelticSaver HSA
can help you meet your health
insurance needs!

3. Presentation Topics
Introduction to HSA Programs
The CelticSaver HSA Health Plan
Overview of Celtic’s Product Portfolio

4. Introduction to
Health Savings Account Programs

5. Health Savings Account Programs help address…
The growing number of individuals and families with no
health insurance
Research shows that people of all ages and income levels are
choosing HSA Programs to meet their needs
The rising cost of health care
Consumers are experiencing rising costs for medical services,
drugs, supplies, and insurance premiums
HSA Programs provide major medical coverage and a savings
account to help manage health care costs
Increasing popularity of consumer-driven health plans
Consumers are taking more control over how their health
care needs are met and financed
The U.S. Treasury Department projects that by 2010,
HSAs will grow to cover 25-45 million people*
*Source: US Treasury’s HSA Website www.treas.gov/offices/public-affairs/hsa/.

6. Two Components of an HSA Program
Consumers must have coverage under an HSA-qualified
“High Deductible Health Plan” (HDHP) to open and
contribute to a Health Savings Account.
Qualified HDHP Health Savings
Account
CelticSaver
HSA Health & HSA
Plan

7. Why are consumers buying HSAs?
HSA Programs give you:
More control over how your health care needs are met
and financed:
you may price-shop, ask more questions, get more
involved in prevention and treatment
Tax savings
tax deductions on HSA contributions
tax-free withdrawals for qualified medical expenses
tax-free earnings on dollars accumulating in the HSA
Health insurance coverage – protection against high or
unexpected medical bills
Account ownership and portability
Source: US Treasury’s HSA Website www.treas.gov/offices/public-affairs/hsa/.

8. Who can have an HSA?
Any adult can contribute to an HSA if they:
are covered under an HSA-qualified HDHP
(such as the CelticSaver HSA)
have no other first-dollar medical coverage (other types of
insurance like specific injury insurance or accident, disability,
dental care, vision care, or LTC insurance are permitted)
are not entitled to benefits under Medicare
can’t be claimed as a dependent on someone
else’s tax return
Source: US Treasury’s HSA Website www.treas.gov/offices/public-affairs/hsa/.

9. HSA Contributions – the basics
Annual tax-deductible contribution can be up to
the IRS allowed maximums. For 2009:
Single coverage: $3,000
Family coverage: $5,950
Contributions can be made by the account holder,
employer, or both. The account holder takes the tax
deduction.
Contributions can be made in one or more payments
at any time prior to April 15 of the following year.
People between the ages of 55 and 65 can
make additional “catch up” contributions.
For 2009: $1,000
Source: US Treasury’s HSA Website www.treas.gov/offices/public-affairs/hsa/.

10. HSA Qualified Expenses
You can use the money in your savings account to pay for
many types of medical expenses, even some that are excluded
from your insurance plan. Some examples:
Rx drugs Allergy medicine
OTC drugs Oxygen equipment
Chiropractic care Band-aids
Reading glasses Doctor’s fees
Diaper rash treatment
Dental services
Maternity
Elective surgery (i.e. Lasik)
Visit http://www.irs.gov/pub/irs-pdf/p502.pdf for more information
about qualified medical expenses.

11. HSA Qualified Expenses
Generally, health insurance premiums are not qualified
expenses, except for the following:
Qualified long-term care insurance
COBRA health care continuation coverage
Health care coverage while an individual is receiving
unemployment compensation
Medicare premiums and out-of-pocket expenses,
including deductibles, copays, and coinsurance for
Parts A,B,C, and D.
Visit http://www.irs.gov/pub/irs-pdf/p502.pdf for more information
about qualified medical expenses.
Source: US Treasury’s HSA Website www.treas.gov/offices/public-affairs/hsa/.

12. Disbursements – the basics
Withdrawals from an HSA used for qualified medical
expenses are tax-free if taken for the insured individual,
spouse, or dependent. The spouse and dependent(s)
do not need to be covered by the underlying HDHP.
Withdrawals not used for qualified medical expenses
are included in gross income for tax purposes and are
taxed an additional 10%.
Source: US Treasury’s HSA Website www.treas.gov/offices/public-affairs/hsa/.

13. The CelticSaver HSA Health Plan

14. CelticSaver HSA Health Plan
Standard plan features:
Eligibility: Individuals, ages 18 to 64½ years, and their
dependents
Plan choices: fully-steered PPO and Managed Indemnity
Deductible (and coinsurance) choices:
Individual Family
$1,500 (80/20% of the next $3,000 (80/20% of the next
$18,000) $36,000)
$2,600 (80/20% of the next $5,150 (80/20% of the next
$12,000) $24,000)
$1,500 (100%) $3,000 (100%)
$2,600 (100%) $5,150 (100%)
$5,000 (100%) $10,000 (100%)

15. CelticSaver HSA Health Plan
Standard plan features:
Single family deductible
Rx and non-preventive office visit coverage after deductible
Preventive Care
Eligible expenses covered up to $300 per person,
per calendar year; includes up to $50 for routine
eye exams; subject to deductible and coinsurance
Preventive Care Option
Eligible expenses covered first-dollar up to
$300 per person, per calendar year; includes up
to $50 for routine eye exams

16. CelticSaver HSA Health Plan
Standard plan features:
$7 million lifetime maximum per insured
Additional emergency room deductible: $250
per visit (waived if admitted to hospital)
Rate guarantee: premium will not change during
the first 12 months of coverage
Preferred and non-tobacco user rates are available
for eligible applicants

17. Why purchase the CelticSaver HSA?
Enjoy the benefits of a high-deductible health plan
and HSA:
CelticSaver HSA is simple and easy to understand
Enjoy various tax advantages of the HSA
You can buy the health plan without the HSA
Freedom to use any HSA administrator

18. Why purchase the CelticSaver HSA?
A committed company:
Celtic is Rated B++ (Good) by A.M. Best
Celtic is committed to excellent policyholder service
Celtic’s plans can be mixed-and-matched to meet
your health insurance and budgetary needs

19. Superior HSA Support
There are a number of services available to help
answer your questions about your health insurance
policy and Health Savings Account:
Your insurance agent—your best resource!
Celtic’s customer service (800) 477-7870
Celtic’s website: www.celtic-net.com

20. Celtic’s Product Portfolio

21. Celtic’s Product Porfolio
Celtic offers a portfolio of plans to meet
a wide range of individual and family
health insurance needs.
In addition to the CelticSaver HSA, you can
choose from
Celtic Basic
CeltiCare Preferred
Celtic Short-Term
Plan availability and benefits may vary by state. Contact your agent for more information.

22. Celtic Basic Health Plan
Product Availability: Highlights:
Individuals, ages 6 80/20% coinsurance
months through 64½
years, and their
Range of deductibles
dependents Low non-preventive office
visit copay
Likely Prospects: $5,000,000 lifetime max.
19-34 year-olds Built-in network savings
Young families Rx drug coverage
40+ aged consumers Rx Drug Option
Initial 12-month rate
guarantee
Plan availability and benefits may vary by state. Contact your agent for more information.

23. CeltiCare Preferred Health Plan
Product Availability: Highlights:
Individuals, ages 6 3 plan choices
months through 64½ Healthy Lifestyle Program
years, and their
dependents Low office visit copays
Preventive care coverage
Likely Prospects:
Individuals and families $7,000,000 lifetime max.
with no employer Initial 12-month rate guarantee
coverage Rx drug coverage
Consumers who need a Rx Drug Option
flexible, comprehensive
plan with options Supplemental Accident Option
Plan availability and benefits may vary by state. Contact your District Sales Manager for more information.

24. Short-Term Health Plan
Product Availability: Highlights:
Individuals, ages 6 Range of deductibles
months through 64½ Major medical plan
years, and their
80/20 coverage to $5,000
dependents
$2 million lifetime max.
Likely Prospects: Length of coverage:
Recent college grads 1-6 mos.
Military discharges Applicants can apply up to 3
times for a total of 12 months
Those awaiting group
of coverage
coverage
Emergency coverage
Anyone needing to fill a
outside U.S.
gap in coverage
Plan availability and benefits may vary by state. Contact your agent for more information.

25. (800) 477-7990
www.celtic-net.com
We hope this presentation was helpful. After learning the
basics, you’ll have questions your agent or tax professional
can help you answer. Thank you for your interest in Celtic!
Important Note: The information contained in this presentation and in any accompanying literature is not
intended to provide full details of Celtic plans and may change at the discretion of Celtic Insurance
Company. Complete terms of coverage are outlined in the individual Certificate Booklets and set forth in
the applicable insurance Policy and Trust agreement. In applying for coverage, the primary insured agrees
to be bound by the Certificate. The benefits described here and any accompanying literature are the
standard benefits offered by Celtic. Policy provisions vary in some states.
Plan availability and benefits may vary by state.
Celtic Insurance Company does not provide tax, investment or legal advice. Federal and state tax laws
may change and are subject to interpretation. If tax, investment or legal advice is requested, consumers
should seek the services of a licensed professional.
3/09