Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

2008 Benefits Open Enrollment by Andamicrophone

VIEWS: 59 PAGES: 32

									2008 Benefits Open Enrollment
2008 Items of Interest…
 Dental and Vision Insurance
   No coverage changes
   Premium increases
 Medical Plan changes for 2008
   Medical Plan A
     Includes Health Incentive Account (HIA)
   Medical Plan B
     Health Savings Account (HSA) option
     Includes health incentives
   Dental and Vision Insurance
   2008 Premiums
                   Dental Insurance – Delta Dental of Missouri

Plan A-Low Option                          Plan B-High Option
                 Current     Renewal                        Current    Renewal
Employee         $10.42      $10.84        Employee         $24.12     $25.08
Spouse           $11.94      $12.42        Spouse           $23.48     $24.42
Children         $24.32      $25.30        Children         $36.22     $37.68
Family           $35.58      $37.00        Family           $62.84     $65.36

                Vision Insurance – Vision Service Plan (VSP)

Plan A-Exam Plus                           Plan B-Signature Plan
                   Current   Renewal                         Current   Renewal
Employee           $2.58     $2.88         Employee          $ 9.70    $10.80
Spouse             $1.06     $1.18         Spouse            $ 5.86    $ 6.52
Children           $1.12     $1.24         Children          $ 6.18    $ 6.88
Family             $2.90     $3.22         Family            $15.92    $17.72
2008 Medical Insurance
Planning/RFP Process
   Spring 2007 – Employee Constituent Group discussions concerning a
    future offering of a Health Savings Account (HSA)
   Spring 2007 – Benefits Review Subcommittee recommends to Budget
    Review Committee the consideration of a 2008 HSA insurance plan
    offering
   July 2007 – RFP process completed with quotes from 5 providers with
    Anthem Blue Cross and Blue Shield having the lowest quotes
       Current Plan A quote – 15% premium increase
       Current Plan B quote – 15% premium increase
   September 2007 – Accepted Anthem Blue Cross and Blue Shield quote
    for
       Plan A with Health Incentive Account provisions - 3% premium
        decrease
       Plan B with Health Savings Account provisions - 22% premium
        increase
   Result: Lessen the cost increase impact to employees and the
    University with some of the premium and cost avoidance savings
    passed on to employee in Cafeteria Plan funding
2008 Medical Insurance
Regular Plan A (with HIA)
   CHANGE Cafeteria Plan Funding:
     2007: $450/year
     2008: $450/year + $300 increase = $750/year
   $500 Individual Deductible
   $1,000 Family Deductible
   20%/80% after deductible met
   Full Preventive Care coverage (well woman, PSA, mammogram, annual
    physical, immunizations, etc.)
   CHANGE (Office Visit Copays):
     Current: $20 Primary Care/$40 Specialist
     Renewal: No Office Visit Copays (employee pays 100% of cost up
         to the deductible; then cost share applies)
   CHANGE (Rx Copays):
     Current: $8 tier 1; $25 tier 2; $45 tier 3; 25% up to $2,500 tier 4
     Renewal: No Rx Copays (employee pays 100% of cost up to the
         deductible; then cost share applies)
   CHANGE Out of Pocket Maximum:
     Current: $2,500/year
     Renewal: $3,500/year
2008 Medical Insurance
Medical Plan B (with HSA and health
incentives)
   CHANGE Cafeteria Plan Funding:
        2007: $450/year + Difference in Plan A and B employee premiums
         $1,668.48 = $2,118.48
        2008: $450/year + $300 increase + Difference in Plan A and B employee
         premiums $736.32 = $1,486.32
   $1,500 Individual Deductible
   $3,000 Family Deductible
   20%/80% after deductible met
   No Office Visit Copays (employee pays 100% of cost up to the deductible; then
    cost share applies)
   CHANGE Preventive Care:
        Current: No Preventive Care coverage
        Renewal: Full Preventive Care coverage (well woman, PSA, mammogram,
         annual physical, immunizations, etc.)
   CHANGE Rx Copays:
        Current: $8 tier 1; $25 tier 2; $45 tier 3; 25% up to $2,500 tier 4 - $500
         deductible applies to tiers 2, 3, and 4
        Renewal: No Rx Copays (employee pays 100% of cost up to the deductible;
         then cost share applies)
   CHANGE Out of Pocket Maximum:
        Current: $5,500/year
        Renewal: $5,000/year
   Medical Insurance
   2008 Premiums
           Medical Insurance – Anthem Blue Cross and Blue Shield

Plan A-HIA option                              Plan B-HSA and health incentive options
                    Current   Renewal                             Current Renewal
Employee            $430.52   $418.36*         Employee           $291.48 $357.00*
Spouse              $430.52   $418.36          Spouse             $291.48 $356.98
Children            $322.88   $313.74          Children           $218.62 $267.74
Family              $753.40   $732.12          Family             $510.10 $624.74

* 100% of Employee Premium Paid by the University.
Medical Plan A
 Anthem Blue Cross and Blue Shield
 Introducing a Health Incentive
  Account (HIA)
Health Incentive Accounts (HIA)
Definition
 Allows members to earn health care dollars
  through various plan incentives
 Feature within Medical Plans A and B
   Medical Plan A – reduces plan deductible
   Medical Plan B – payable to employee in
    giftcards, taxable to the employee
 Dollars can be used to offset plan
  deductible
 Unused health incentives carry over
Health Incentive Accounts (HIA)
Types of Incentives
 Health Assessment - $50 off deductible
   Complete online health profile
 Personal Health Coach - $100 off deductible
   Members with chronic medical conditions
     (i.e. asthma, diabetes, maternity, cancers,
     etc.) are paired with a trained nurse case
     manager to manage condition
   $200 incentive when achieving goals
     through program
Health Incentive Accounts (HIA)
Types of Incentives
 Smoking Cessation Program - $50 off
  deductible
   One-on-one telephone counseling
    sessions
 Weight Management Program - $50
  off deductible
 All incentive programs available
  through the Anthem website:
  www.anthem.com
Medical Plan A
Cafeteria Plan Contributions
 Southeast contribution:
   Cafeteria Plan Funding = $450 + $300
    increase = $750/year
   Both Southeast’s and employee’s pre-tax
    contributions applied as follows:
   12 Pay Monthly Employee – over 12 pay
    periods
   10 Pay Monthly Employee – over 10 pay
    periods
   Biweekly Paid Employee – over 24 pay
    periods
  Medical Plan A
  Cafeteria Plan Funding
  Employer Cafeteria Plan Funding = $750/year
      ($450 + $300 increase)

                                     Dependent
• Southeast funds
                                     Care
100% of
                         Dependent   Assistance
employee Regular                                  Employee &
Medical Plan A           Medical
                                 Cafeteria Plan A Dependent
premium                              Option       Dental
•Part-time                Employee
employee funding          and              Medical
prorated by percent       Dependent        Reimbursement
of assignment             Vision           Account (MRA)
Medical Plan B
 Anthem Blue Cross and Blue Shield
 Introducing a Health Savings Account
  (HSA)
 Includes health incentives
Health Savings Accounts (HSA)
Definition
 An interest bearing savings account owned
  by the employee to pay for current and
  future medical expenses
 Offered with a High Deductible Health
  Plan – Medical Plan B
 Works similar to a flexible spending
  account, yet unused monies roll over year
  after year and continue drawing interest
 Portable
 Health Savings Accounts (HSA)
 Who is NOT Eligible?
 Employees covered by Medical Plan A
 Employees covered by other medical
  insurance that is a non-high deductible
  health plan
 Employees enrolled in Medicare
  coverage
 Employees claimed as a dependent
  child on someone else’s tax returns
Health Savings Accounts (HSA)
Account Contributions
 Both employer and employee contributions
  are permissible
 Pre-tax contributions
 2008 maximum annual contribution
  (employer and employee contributions
  combined) under Medical Plan B:
   $2,900 for employee only coverage
   $5,800 for family coverage
 Employee contributions can be changed
  mid-year via form completion in HR office
Health Savings Accounts (HSA)
Account Contributions
 Employees 55 years of age and older,
  catch-up provisions apply –
  additional $900/yr.
Medical Plan B (w/ HSA)
Cafeteria Plan Contributions
   Southeast contribution:
     Cafeteria Plan Funding = $450 + $300 increase = $750
     Plus difference between Medical Plans A and B employee
         premiums = $736.32
     Total Cafeteria Plan Funding = $1,486.32
   If electing an HSA, upfront January 2008 funding: $743.16
    (half of annual Cafeteria Plan funding amount)
     If eligible less than half of year, tax penalties may apply
   Remaining monies applied per pay period throughout the rest
    of calendar year.
   Both Southeast’s and employee’s pre-tax contributions applied
    as follows:
     12 Pay Monthly Employee – over 12 pay periods
     10 Pay Monthly Employee – over 10 pay periods
     Biweekly Paid Employee – over 24 pay periods
 Medical Plan B (w/ HSA)
 Cafeteria Plan Contributions
 Employer Cafeteria Plan Funding = $1,486.32/year
     Cafeteria Plan Funding ($450 + $300 increase = $750/year) +
         Difference between Medical Plans A and B employee premiums
         ($736.32)
                                           Dependent
• Southeast funds                          Care
100% of                    Dependent       Assistance
employee Regular           Medical                        Employee &
Medical Plan B                         Cafeteria Plan B   Dependent
                                           Option         Dental
premium
                              Employee
•Part-time                    and
employee funding              Dependent         Health Savings
prorated by percent           Vision            Account (HSA)
of assignment
Health Savings Accounts (HSA)
Account Distributions
 Tax-free if used for qualified medical
  expenses
 Withdrawal only for monies in the account
  at time of distribution
 Qualified medical expenses incurred on or
  after account is established
   Can be used to reimburse for past years’
    expenses – no time limit on distribution
 Can apply qualified medical expenses of
  spouse and children, even if not covered by
  your medical insurance
Health Savings Accounts (HSA)
Account Distributions
 Qualified Medical Expenses:
   Deductibles, cost shares, and out of pocket costs
    on medical insurance claims
   Over-the-counter medical items
   COBRA continuation of coverage premiums
   Medicare Insurance Premiums (Parts A through
    D)
   Qualified long term care insurance premiums
   DOES NOT INCLUDE PREMIUMS FOR MEDICAL,
    DENTAL OR VISION INSURANCES
Health Savings Accounts (HSA)
Account Features
 HSA serviced through ACS/Mellon Bank
 Upon electing the Medical Plan B coverage and electing
  an HSA, HSA Welcome Kits will be mailed in early
  December to participants for forms completion
 FORMS MUST BE COMPLETED BY THE EMPLOYEE AND
  RETURNED TO ACS/MELLON BANK ASAP
 Competitive mutual fund investment options available
  once account reaches $3,000
 Online management access of personal benefits and HSA
  details
 Monthly account activity statements
 Debit cards issued to pay for qualified medical expenses
 Checkbooks available, initial 40 checks free of charge
 Setup and monthly fees paid by the university
Health Savings Accounts (HSA)
Account Features
 Debit Card Usage
   Free-of-charge MasterCard issued through
     ACS/Mellon Bank
   Pay for physician and Rx expenses
   Purchase eligible over-the-counter medical items
   Access cash from your personal account to pay for
     eligible medical expenses
 Checkbook Usage
   Paper signature card included in HSA Welcome Kit
   Must be signed and received by ACS/Mellon Bank
   Initial 40 check supply free of charge
 Customer Service: 1-888-224-4902
 www.anthem.com, My Account page
Health Savings Accounts (HSA)
How to use your money…
 If seeing an Anthem provider…
   No office visit copays
   Provider files insurance claim with
    Anthem
   Provider bills the member for out of
    pocket responsibility due.
   Member uses HSA account dollars to pay
    for out of pocket costs via debit card
Health Savings Accounts (HSA)
How to use your money…
 When visiting your retail pharmacy…
   No Rx copays – 20% Cost Share after Deductible
   Pharmacist processes Rx through Anthem computer
    system
   Member uses HSA account dollars to pay for out of
    pocket costs via debit card
 When utilizing mail order pharmacy…
   No Rx copays – 20% Cost Share after Deductible
   Precision Rx processes mail order Rx through Anthem
    computer system
   Member uses HSA account dollars to pay for out of
    pocket costs via debit card
    Medical Plan A or B
    An Analysis - Which is right for you?
    Medical Plan A - $500 Deductible               Medical Plan B - $1,500 Deductible
             (includes HIA)                                  (includes HSA)
General Office Visits/Rx                       General Office Visits/Rx
4 Office Visits ($51/visit) =     $ 204        4 Office Visits ($51/visit) =     $ 204
4 Labs ($150/lab) =               $ 357        4 Labs ($150/lab) =               $ 600
4 Rx purchases ($100/Rx) =        $    80      4 Rx purchases ($100/Rx) =        $ 400
Total Cost =                      $ 641        Total Cost =                     $ 1,204
Less MRA Funding =                $ (750)      Less HSA Funding =               $(1,486)
Net Savings (leftover MRA)=      $ (109)       Net Savings (HSA carryover) =    $ (282)


A $50,000 Surgery                              A $50,000 Surgery
4 Office Visits ($100/visit) =   $       400   4 Office Visits ($100/visit) =    $   400
4 Labs ($150/lab) =               $      200   4 Labs ($150/lab) =               $   600
4 Rx purchases ($100/Rx) =        $       80   4 Rx purchases ($100/Rx) =        $   400
Deductible & OOP Maximum =       $    2,820    Deductible & OOP Maximum =       $ 3,600
Total Cost =                     $    3,500    Total Cost =                     $ 5,000
Less MRA Funding =               $     (750)   Less HSA Funding =               $(1,486)
Net Cost =                       $    2,750    Net Cost =                       $ 3,514
2008 Benefits Open Enrollment
Processing Your Enrollment…
 October 15 – October 26, 2007
 Full-time (100% assignment) employees
  will once again use Employee Self Service
  to process Open Enrollment elections
   In the Open Enrollment feature…
      Click on “Health” group to elect Cafeteria Plan
       Funding, Medical, Dental and/or Vision
       insurance plan elections
      Click on “Flex Spending” group to elect a Health
       Savings Account (HSA), a Medical
       Reimbursement Account and/or a Dependent
       Care Assistance Account
        Enter PER PAY PERIOD amounts for these
         accounts!
2008 Benefits Open Enrollment
Processing Your Enrollment…

 Part-time (less than 100% assignment)
  employees will receive enrollment forms via
  campus mail for completion and return to
  HR by October 26
 Supplemental/Dependent life insurance
  elections/changes can be processed via the
  HR website.
 2008 Medical Insurance Cards – mailed to
  member homes December 18.
2008 Benefits Open Enrollment
Processing Dependent Coverage Changes

 Must add dependent coverage information
  if adding dependent coverages to insurance
  plans for 2008.
 If dropping dependent coverages for 2008,
  must enter an end date of coverage for
  each dependent.
 If dropping an insurance coverage, must
  enter an end date of coverage for each
  dependent.
2008 Benefits Open Enrollment
Instructional Classes
 Pre-enrollment mandatory via the Office
  of Continuing Education website at
  https://www3.semo.edu/registration/courses.asp

 Date              Time              Location

 October 15, 2007 1:30 – 3:00 p.m. Kent Library Instructional
                                   Lab, Room 112
 October 23, 2007 12:00 noon –       Kent Library Instructional
                  1:30 p.m.          Lab, Room 112
  2008 Benefits Open Enrollment
  Open Labs
   Open labs for one-on-one assistance in
    processing your Open Enrollment through
    Employee Self Service
Date               Time                      Location
October 16, 2007   10:00 a.m. – 12:00 noon   Dempster Hall, Room 103
October 17, 2007   9:00 – 11:00 a.m.         Dempster Hall, Room 103
October 19, 2007   2:00 – 4:00 p.m.          Dempster Hall, Room 103
October 22, 2007   1:00 – 3:00 p.m.          Dempster Hall, Room 103
October 24, 2007   9:30 – 11:30 a.m.         Dempster Hall, Room 103
October 25, 2007   1:00 – 3:00 p.m.          Dempster Hall, Room 103

								
To top