For Kraft employees newly eligible for benefits May 1, 2014 and after Using Your Health Savings Account (HSA)
One of the most important things to know about the Kraft Foods Medical Plan is that premium costs are lower because of the high deductible health plan design. That gives you more money to save in your Health Savings Account (HSA) — so you can use tax‐free dollars to cover your deductible, co‐insurance and co‐payments. Use HSA dollars to pay qualified health care expenses today or save for future expenses. You can use your HSA to pay for eligible health care expenses for yourself, your spouse and your dependents that you claim on your tax return — even if they’re not enrolled in the Kraft Foods Medical Plan. And you can use your HSA to pay expenses such as medical, prescription drug, dental, orthodontia and vision expenses — it offsets the higher deductible. In fact, the lower premiums you pay for this type of medical plan, together with the Kraft Matching Contribution and the potential for earning Healthy Living Rewards, all work together to offset the higher deductible. Plus, you can make your own contributions to your HSA, too, up to IRS limits. TOOLS TO USE For more help in understanding how the Kraft Foods Medical Plan and the HSA work, check out the Animated Video: Join Mr. Peanut in learning how to use the HSA along with your Kraft Medical Plan. 1 Who Is Eligible to Contribute to an HSA?
Health Savings Accounts (HSAs) offer tax advantages, and the government has some rules on who can contribute to them: 1. You must be enrolled in a high deductible health plan like the Kraft Foods Medical Plan. 2. You can’t have other health coverage — including under another employer’s plan, or a government plan such as Medicare or TriCare — unless the other coverage also qualifies as “high deductible health plan” coverage as defined by law. Disability, long‐term care, dental care and vision care are not considered to be other health plan coverage for this purpose. 3. You or your spouse cannot be covered under a Health Care Flexible Spending Account — even if your spouse elects it under his or her employer’s plan and even if you don’t claim any reimbursements for services or supplies you obtain. 4. You cannot be claimed as a dependent on someone else’s tax return. (Filing a joint return with your spouse does not constitute being claimed as a dependent.) You can, however, be covered under a dental plan (including the Kraft Foods Dental Plan) or a vision plan (including the Aetna Vision Preferred Plan) and be eligible for HSA participation. IMPORTANT: You are solely responsible for determining whether you are eligible to maintain an HSA in accordance with the applicable Internal Revenue Service rules. See your Medical Plan Summary Plan Description for more information; go to MyHR Online, click Benefits to access MyBenefits Online. GOOD TO KNOW If you enroll in the Kraft Foods Medical Plan and you aren’t eligible to make contributions to an HSA, you can participate in the Health Care Flexible Spending Account (FSA) to pay for health care expenses with before‐tax dollars. Kraft will match your contribution to your Health Care FSA, $1‐for‐$1 up to $500. Remember, though, you forfeit any money in your Health Care FSA that you don’t use for current year expenses. 2 What Is a High Deductible Health Plan?
A high deductible health plan is a health plan with an annual deductible of $1,250 or greater for Employee Only coverage, or $2,500 or greater for any other coverage level. With this type of plan, the out‐of‐pocket maximums do not exceed $6,250 for Employee Only coverage or $12,500 for any other coverage level. Why a high deductible health plan with an HSA? Kraft is very much in line with other major companies by offering HSAs to employees. A recent survey found that 66% of large companies offered employees at least one account‐based plan option this year, and that number is expected to grow to 80% next year. The premiums of this plan are less expensive than the old plan. Premium costs for the Kraft Foods Medical Plan are lower than the former plan. And that, of course, gives you more money in your pocket. We encourage you to put those extra dollars into your HSA. With an HSA you save money on taxes because: 
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Money going in is tax‐free, Money you use is tax‐free (as long as it’s used for covered health expenses), and Any investment earnings are tax‐free. You are 100% protected for major illness or injury. That means that once you reach your out‐of‐pocket maximum, the plan pays 100% of expenses for the rest of the calendar year. With an HSA, you play an active role in managing your health care costs. In other words, you have a stake in the game AND you have the power to be a thoughtful and smart buyer of health care services. Last, you can save money for future health care expenses when you retire or leave Kraft. 3 Get Your Account Started
If you’ve already opened your HSA, you’re all set. Kraft will match your contributions $1‐for‐$1 up to $500. Your contributions will be made through before‐tax payroll deductions throughout the year and the Kraft Matching Contribution will be deposited to your HSA on a per paycheck basis until you reach the $500 maximum. GOOD TO KNOW If you are enrolling in the Kraft Foods Medical Plan for the first time, the Patriot Act mandates that all banks verify information about a consumer before an account can be opened. This is called the Customer Identification Process (CIP), and it generally takes three business days. PayFlex is the trustee of the Aetna Health Savings Account. Look for information from PayFlex After your HSA is opened, you will receive the following information at your home mailing address: 
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Letter with PayFlex Custodial Agreement and Fee Schedule. Welcome letter with instructions on how to register your account online, order additional cards, and choose your account notifications. Once you pass the Customer Identification Process (CIP) process, your PayFlex Debit Card will be mailed — this card cannot be used until you activate it, select a Personal Identification Number (PIN) and sign the back. Manage your HSA online at Aetna Navigator. You have 24/7 secure access to your HSA balance and activity. Go to MyHR Online, click Benefits to access MyBenefits Online. From MyBenefits Online, click on Aetna Plans/Health Assessment, then go to Your Accounts & Funds, or go directly to Aetna Navigator and provide your Aetna login information. 4 How Is My HSA Funded?
Money can be deposited into your HSA in three ways: 1. Your own contributions. You save on taxes by contributing to your HSA. 2. Kraft Matching Contribution. Kraft matches your contributions $1‐for‐$1 up to $500. The Kraft Matching Contribution into your HSA puts “money in the bank” to help you pay your deductible. 3. Healthy Living Rewards. When you take part in various Healthy Living Rewards activities, you can earn up to an additional $1,000 contributed to your HSA. Keep in mind the IRS limits the amount that can be deposited into your account each year based on your coverage level: IRS 2014 Contribution Limit $3,300 $6,550 Coverage Level Employee Only Any other coverage level NOTE: These dollar amounts combine money both you and Kraft can contribute in 2014. So be sure to subtract the Kraft Matching Contribution (up to $500) and any rewards dollars you earn (up to $1,000) when you calculate your own contributions. GOOD TO KNOW 
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You can change your election anytime during the year. You can use your HSA dollars to pay eligible health care expenses today or save for future expenses like out‐of‐pocket costs, including your deductible, co‐payments and co‐insurance. 5 How Do I Contribute to My HSA?
You can make HSA contributions through before‐tax payroll deductions or directly to PayFlex, up to the annual limit. Your contributions can be spread out in equal monthly installments throughout the calendar year. However, you may want to “frontload” your HSA to have enough in your account to cover your out‐of‐
pocket expenses you may incur early in the year (for example, if you find out that you will incur a large health care expense in January or February). You have a couple ways to speed up deposits to your HSA — through payroll deductions and through personal deposits. Remember, you do not need to have a qualifying change in status or wait for next year’s Annual Enrollment to make a change. You can increase or decrease your payroll contributions to the HSA any time. Changing your HSA contribution To change your HSA contribution anytime, go to MyHR Online, click Benefits, then Work and Life, then HSA Election Update. You can also contact the Kraft Foods Benefits Center at 1‐800‐KRAFT‐HR (1‐800‐572‐3847) and select Option 1 – Benefits, then Option 1 – Health and Wellness. Yours to keep Your HSA is like a 401(k) for health care expenses, except you can use it today or save it for future qualified expenses. Any money in your HSA that you do not use is always yours to keep, even if you leave or retire from the Company. Unlike a Kraft Foods Health Care FSA, you do not need to “use it or lose it” before the end of the year — you can roll over your dollars from year to year and spend it when you really need it, whether that’s next year or in retirement. In addition, when you save with an HSA, your balance earns interest. When your balance reaches $1,000, you will have investment options. 6 How Do I Use My HSA to Pay for Expenses?
You have options on how — and if — you use your HSA to pay for your health care expenses. As long as the money is used for qualified medical expenses, it comes out of your account tax‐free. If you have enough money in your account to cover the expense, you can use one of the methods below to pay for the qualified medical expense: 
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Use your PayFlex Debit Card. It will be mailed to you after you open your HSA and pass the Customer Identification Process (CIP) process. As soon as you sign your card and set up your PIN, you can use it for direct payment at a doctor’s or dentist’s office, pharmacy or health care facility. Schedule to make a payment to a doctor or health care facility through your HSA on Aetna Navigator. IMPORTANT: You cannot use your PayFlex Debit card at an ATM. And if you don’t have enough in your account? Pay with money out of your own pocket and then reimburse yourself by making a withdrawal from your HSA on Aetna Navigator, once you have enough money in your HSA. Finding your HSA balance It’s good to know how much you have in your HSA at any given time so you know how you want to pay your eligible expenses. To access your HSA balance: 
Go to MyHR Online, click Benefits to access MyBenefits Online. Then click on Aetna Plans/Health Assessment. Select Access your Account under Your Account & Funds. 
Log on to Aetna Navigator. OR GOOD TO KNOW Access your account on the PayFlex Mobile™ application with your PayFlex username and password. 7 What Expenses Can I Pay with My HSA?
You can use your HSA to pay for any qualified expenses you incur on or after the date your HSA is opened. Eligible expenses include any out‐of‐pocket health care (including dental, vision and orthodontia) or prescription drug expenses you incur — either before or after you meet the deductible. The IRS regulations allow you to use your HSA funds for eligible health care expenses incurred by your spouse and dependents (that are claimed on your tax return), regardless of whether they are enrolled in your medical or dental plans. Although you may enroll your domestic partner or your adult child in the Kraft Foods Medical Plan, if your domestic partner or adult child is not a tax dependent, you may not use your HSA to pay for otherwise qualified expenses. The following is a sample list of eligible HSA expenses. For the complete list see IRS Publication 502. Examples of HSA Eligible Expenses Acupuncture Alcoholism treatment Ambulance Anesthetist Arch supports Birth control pills (by prescription) Blood tests Blood transfusions Braces Cardiographs Chiropractor Contact lenses Contraceptive devices (by prescription) Convalescent home (for medical treatment only) Crutches Dental treatment Dental x‐rays Dentures Dermatologist Diagnostic fees Drug addiction therapy Drugs (prescription) Eyeglasses Fluoridation unit Gum treatment Gynecologist Hearing aids and batteries Hospital bills Hydrotherapy Insulin treatment Lab tests Metabolism tests Neurologist Nursing (including board and meals) Obstetrician Operating room costs Ophthalmologist Optician Optometrist Oral surgery Organ transplant (including donor’s expenses) Orthopedic shoes Orthopedist Osteopath Oxygen and oxygen equipment Pediatrician Physician Physiotherapist Podiatrist Postnatal treatments Practical nurse for medical services
Prenatal care Psychiatrist Psychoanalyst Psychologist Psychotherapy Radium therapy Registered nurse Special school costs for the handicapped Spinal fluid test Splints Sterilization Surgeon Therapy equipment Transportation expenses (relative to health care) Vaccines Vasectomy Vitamins (if prescribed) Wheelchair X‐rays Note: Over‐the‐counter medicines are not reimbursable unless prescribed by a doctor.
8 HSA Fees
Kraft pays the monthly maintenance fee for your HSA as long as you remain employed by Kraft. No charges or fees apply for payment or reimbursement of out‐of‐pocket health care expenses through making a withdrawal. Also, no fees apply for payment or reimbursement using your PayFlex Debit Card. Certain fees apply based on how you use your HSA. You will be responsible for these fees. You can also view the fee schedule online at any time. Description
Fee
Tips for Avoiding Fees
Monthly Account Statement via Paper (includes postage) $1.50
Stop Payment (per check) $25.00
Non‐Sufficient Funds (NSF) Fee (overdraft) $25.00
Deposit Item Returned
$25.00
View your monthly statement online at no charge. You can opt to receive mailed paper statements for a $1.50 monthly fee.
You would incur this fee only if you request the bank to stop a payment on a check or electronic payment.
Before you use your HSA, make sure you have enough funds in the account. You can check your balance online at any time.
$25.00 When you transfer funds into your HSA, make sure you have enough funds in your personal bank account to cover the transfer.
In accordance with the terms and conditions of the Custodial Agreement, PayFlex reserves the right to change any of the above fees and will provide you with written notice. PayFlex also reserves the right to change additional fees and will provide you with written notice in advance. If your Medical Plan coverage status or employment status changes, your monthly account maintenance fee and other transaction fees may also change. 9 How to Designate a Beneficiary for My HSA
Your beneficiary is the person or people who will be entitled to the money in your HSA if you die. If you are married when you die, your spouse is automatically entitled to your HSA unless you had previously submitted a properly completed form designating a beneficiary other than your spouse, and your spouse consented to the HSA designation. If your spouse is your beneficiary, the account is treated as your spouse’s HSA after your death and should be used for qualified medical expenses to avoid being taxed. If you named another person as your beneficiary, the account stops being an HSA and your beneficiary will have to pay taxes on the distribution. If you don’t name a beneficiary, the value of your HSA will be included as part of your estate and included in your final income tax return. To designate or change a beneficiary (if you have not previously designated one): 
Go to your HSA through Aetna Navigator: o Then, from the home page, click on Financial Center/My Profile and then Beneficiaries. 
Call HSA Member Services at 1‐888‐678‐8242. Representatives are available Monday through Friday, 7:00 a.m. – 7:00 p.m., and Saturday from 9:00 a.m. – 2:00 p.m. CST. OR 10