Eligibility for the Advantage+ Health Plan and Health Savings Account

Benefits and Compensation Annual Enrollment

With the Advantage+ health plan, there are two features to consider — the medical plan sponsored by Boeing and the separate but related Health Savings Account (HSA) administered by HealthEquity. All nonunion employees are eligible for the medical plan EXCEPT employees in Hawaii and employees on long-term international assignment. Most people are eligible for the HSA, but here’s a quick way to confirm your eligibility.

Eligibility for the Health Savings Account If You Have a Spouse or Same-Gender Domestic Partner If Your Spouse Works for Boeing If You’re Enrolled in Any Part of Medicare Now, or You Will Be in 2014 If You’re Covered by TRICARE Now, or You Will Be in 2014

Eligibility for the Health Savings Account Federal rules, which may change from time to time, determine whether or not you are eligible to set up an HSA and whether you can make or receive contributions to an HSA. One requirement is that you’re enrolled in a qualified high-deductible health plan — a plan that has a minimum annual deductible. The Advantage+ health plan meets those requirements, and it’s the only Boeing-sponsored plan that does. There are other rules, though, that say you’re NOT eligible to set up an HSA if you (the employee) have other health care coverage. Those rules are shown below. If you’re not eligible for an HSA, you can still choose to enroll in the Advantage+ health plan, with its lower paycheck contributions. Here are some situations in which you’re NOT eligible for an HSA:

■■ You’re covered under your spouse’s health plan (unless it’s also a qualified high-deductible health plan).

■■ You or your spouse has a Health Care Flexible Spending Account (unless it’s a special type of account designed to work with a high-deductible health plan).

■■ You have some other impermissible health coverage — for example, retiree medical coverage from another employer (unless it’s also a qualified high-deductible health plan).

■■ You’re enrolled in any part of Medicare.

■■ You’re covered by TRICARE.

■■ You’ve received VA medical benefits in the previous three months (some exceptions may apply).

■■ You can be claimed as a dependent on someone else’s tax return — a spouse is generally not considered a tax dependent for this purpose. For purposes of your eligibility for an HSA, these requirements apply to you and not your covered dependents. So, for example, if your spouse has any of the other coverage shown above, that does not prevent you from establishing an HSA or making or receiving contributions to an HSA, as long as you are not covered by your spouse’s plan.

Below is further information about special situations that might help you make the best choice for you and your family. For more detail about HSA eligibility rules, you can consult IRS Publication 969, or if you have detailed questions about tax issues, you may want to consult a tax adviser. You can also contact HealthEquity, the administrator of the HSA for people enrolled in the Advantage+ health plan. HealthEquity customer service representatives are available at 877-873-9377. If You Have a Spouse* or Same-Gender Domestic Partner (whether or not the spouse or partner is covered under the Advantage+ health plan)

■■ If you’re covered under your spouse’s or partner’s medical plan, you’re not eligible to set up an HSA unless that plan is a qualified high-deductible health plan.

■■ If your spouse or partner has a Health Care Flexible Spending Account that could be used to pay for your health care expenses, you’re not eligible to set up an HSA unless it’s limited in a special way to work with high- deductible health plans.

■■ If (1) your spouse or partner has his or her own coverage, but does not cover you and does not have a Health Care Flexible Spending Account, and (2) you cover your eligible spouse or partner under the Advantage+ health plan and you are otherwise HSA-eligible: –– You’re eligible for Boeing’s family level of contribution to your HSA, and –– You can use your HSA funds to pay for your spouse’s qualified medical expenses (please see the special rules below regarding your partner’s expenses).

■■ If you cover your partner under Boeing’s Advantage+ health plan: –– You’re eligible for Boeing’s family-level contribution to your HSA, but you cannot make tax-free withdrawals from your HSA to pay for your partner’s medical expenses unless the partner qualifies as your tax dependent, and –– As with any other medical plan, you will be charged with ‘‘imputed income” equal to the cost of coverage for your partner if your partner does not qualify as your tax dependent. Note: HSA contributions and earnings are exempt from federal taxes, but state taxes vary. Alabama, California and New Jersey currently have different state taxes for HSA contributions. New Hampshire also has different state taxes for earnings on HSA contributions. Please contact your tax adviser for specific considerations in your state. If Your Spouse Works for Boeing

■■ Each of you needs to enroll for health coverage on your own. If you have children, you need to decide which one of you will cover the children. ■■ If you’re both nonunion employees, you can both enroll in the Advantage+ health plan, or just one of you, or neither. ■■ If only one of you enrolls in the Advantage+ health plan, you will be ineligible for the HSA if your spouse elects his or her own Health Care Flexible Spending Account. Contact TotalAccess at 866-473-2016 for details.

■■ If both of you enroll in the Advantage+ health plan, and you both meet all other eligibility requirements for an HSA: –– You’ll each get the Boeing deductible, and level of HSA contribution, that’s appropriate to your coverage level. For example, if one of you has employee-only coverage, and the other covers self and child(ren), the employee-only coverage will have a deductible of $1,250 and a Boeing contribution of $600, and the other coverage will have a deductible of $2,500 and a Boeing contribution of $1,200. Your combined maximum HSA contribution — not counting catch-up contributions for individuals age 55 or older — is the government- established family maximum of $6,550, reduced by the $1,800 Boeing contribution (or $4,750). The two of you must decide how to split up this allowable contribution of $4,750.

* “Spouse” means your legal spouse whom you married in a state whose laws authorize the marriage, including your same-gender spouse or your common-law spouse if your relationship meets the common-law marital requirements for the state where you entered the common-law relationship.

–– Each of you could also elect a special type of Health Care Flexible Spending Account, which would be limited to coverage of dental and vision expenses, and/or coverage of medical expenses after you first meet the Advantage+ health plan’s deductible. You can each elect such a special Health Care Flexible Spending Account and contribute up to $2,500 to that account for 2014. If You’re Enrolled in Any Part of Medicare Now, or You Will Be in 2014

■■ You’re not eligible to make or receive contributions to an HSA if you’re enrolled in any part of Medicare — Part A (hospital insurance), Part B (medical insurance), or Part D (prescription drug insurance).

■■ If you’re eligible for Medicare — for example, you have turned age 65 — but you’re not enrolled, you’re still eligible to make or receive contributions to an HSA assuming you are otherwise HSA-eligible.

■■ If you start receiving Social Security benefits while you’re still employed, you’ll likely be enrolled in Medicare Part A (hospital insurance) with no required premium. And you may not have a chance to decline that Medicare coverage, even if you do not need it. Even that level of Medicare coverage makes you ineligible to make or receive contributions to an HSA.

■■ If you become enrolled in Medicare during the year, your maximum HSA contribution is limited to a pro rata amount based on the number of months you were HSA-eligible as of the first of the month. You still own the HSA funds you’ve accumulated, though, and can use them for qualified medical expenses.

■■ If you’re enrolled in any part of Medicare, and you’re not eligible to make or receive contributions to an HSA, you may still want to enroll in the Advantage+ health plan. Among other things, you may want to consider these issues in your decision: –– The Advantage+ health plan has the lowest contribution of any of the plans offered, –– You have the option of setting up a Health Care Flexible Spending Account to help save on the cost of medical expenses, even though you’re not eligible for an HSA, and –– Medicare may pay as secondary coverage to the Advantage+ health plan for certain expenses. Contact Medicare at 1-800-633-4227 for more information about how it can pay in a secondary position. If You’re Covered by TRICARE Now, or You Will Be in 2014

■■ If you’re covered by TRICARE, you’re not eligible to make or receive contributions to an HSA.

■■ If you become covered by TRICARE during the year, your maximum HSA contribution is limited to a pro rata amount based on the number of months you were HSA-eligible as of the first of the month. You still own the HSA funds you’ve accumulated, though, and can use them for qualified medical expenses.

■■ If you’re covered by TRICARE, and you’re not eligible to make or receive contributions to an HSA, you may still want to enroll in the Advantage+ health plan. Among other things, you may want to consider these issues in your decision: –– The Advantage+ health plan has the lowest contribution of any of the plans offered, –– You have the option of setting up a Health Care Flexible Spending Account to help save on the cost of medical expenses, even though you’re not eligible for an HSA, and –– TRICARE may pay as secondary coverage to the Advantage+ health plan for certain expenses. Contact TRICARE for more information about how it can pay in a secondary position. Phone numbers for TRICARE are available at www.tricare.mil.

Every effort has been made to provide an accurate summary of your benefits in this document. The material provided here is for informational purposes only; it does not constitute a contract or contractual obligation. Certain eligibility provisions apply to each of the programs, policies, and benefits; not all of these provisions are described here. In the event of a conflict between this document and any of the benefit plans, the terms of the plans will control. Copies of official plan documents are available by written request through the “Contact TotalAccess” online form on the Boeing TotalAccess website. Subject to the applicable bargaining agreement, The Boeing Company reserves the right to change, modify, amend, or terminate any or all of the provisions of the plans at any time and for any reason for employees, former employees, retirees, and their dependents and/or beneficiaries.