UPMC Consumer Advantage provides employers with cost and tax advantages and empowers employees to take control of their personal health care decisions.

What is a consumer-directed health plan (CDHP)?
A CDHP helps pay for medical expenses and deductibles by combining a tax-advantaged savings account or arrangement with a qualified health plan. "Qualified" is defined by Internal Revenue Service codes.

UPMC Consumer Advantage: An innovative approach to consumer-directed health care
Based on UPMC Health Plan's proven PPO Plan, UPMC Consumer Advantage offers both Health Savings Accounts and Health Reimbursement Arrangement plans. HSAs and HRAs feature lower premiums than other traditional health plans and an earmarked fund for health care expenses.

With UPMC Consumer Advantage:

• All in- and out-of-network coverage counts toward the deductible.
• Preventive care is 100% covered and is not subject to the deductible.
• Medical services are covered at 100% after the out-of-pocket limits are satisfied.
• Out-of-pocket limits are lower for in-network care.

---

Learn more about our spending account services>>

---

Answers to your questions about health savings accounts and UPMC Consumer Advantage

Key Questions	UPMC Consumer Advantage Health Savings Account (HSA)	UPMC Consumer Advantage Health Reimbursement Arrangement (HRA)
Are there any restrictions to setting up the account?	Employee must be enrolled in a qualified high-deductible health plan as defined by IRS regulations and must not be covered by any other first-dollar coverage plan (such as a general purpose flexible spending account).	No
Who owns the account?	Employee	Employer
Who can contribute to the account?	Employee, employer, and family	Employer
Can the account move with the employee?	Yes	No
Can the funds roll over year to year?	Yes	Determined by employer
Are the funds restricted to health care expenses only?	No, but penalties may apply	Yes
What are qualified health care expenses?	Section 213(d) of the IRC, except for health insurance premiums	Section 213(d) of the IRC, including health insurance premiums
Are there investment earnings?	Yes, interest-bearing checking account and mutual funds without tax penalty	No
Are there tax implications for contributions?	Employer contributions are not taxed. Employees can make contributions on a pretax basis through payroll deduction. Post-tax contributions are tax deductible for those who itemize.	Employer contributions are not taxed.
Are there other tax advantages?	Withdrawals for qualified medical expenses are tax-free. Accounts earn interest tax-free. Withdrawals for non-medical expenses after age 65 are taxable, but are not subject to penalties.	Reimbursements are tax-free.
Are there government requirements?	A qualified high-deductible health insurance plan must have a minimum deductible and a maximum out-of-pocket limit.*	No
Who is eligible?	Individuals and families covered by a qualified high-deductible health insurance plan	HRAs are not available to partners or spouses in a partnership, shareholders and those who own more than 2% stock in a Sub S Corp., or members of an LLC. Not available to self-employed.
What are the applicable regulations?	P.L. 108-173 and IRS - IRC Section 223	IRS - IRC Section 106(c)(2)
Who ensures expenses are qualified?	Employee	Employer
Do COBRA regulations apply?	No	Yes
Which discrimination rulings apply?	Comparability rules for contributions (same amount or percentage for all employees with comparable coverage)	IRC Section 105(h) and HIPAA
Who is the administrator?	ACS | Mellon or administrator of your choice	UPMC Health Plan

*For 2009, minimum deductibles are $1,150 for individuals and $2,300 for family plans. Maximum annual out-of-pocket expenses are $5,800 for individuals and $11,600 for families.