Slide 1 - Michigan Technological University by wanghonghx

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									            2009 TechSelect
            Open Enrollment
Introduction of 2 New Health Plans for 2009
        (HuskyCare PPO & HuskyCare HSA)

               Open Enrollment Period
        November 3, 2008 to December 3, 2008
             Benefit Office Staff
• Nancy Bykkonen: Staff Assistant
   – 487-2517 or nabykkon@mtu.edu
• Amy Olson: Administrative Aide (FSA)
   – 487-2716 or aolson@mtu.edu
• Renee Hiller: Assistant Manager of Benefits
   – 487-3309 or rlhiller@mtu.edu
• Ingrid Cheney: Director of Benefits
   – 487-2767 or iecheney@mtu.edu
 Benefits Liaison Group (BLG) Charge

• Charge from the Administration
  – “To review and assess Michigan Tech’s health
    insurance program and provide a
    recommendation to the administration for cost
    containment for plan year 2009”
   Benefits Liaison Group Charge
• Compensation Strategy Task Force
  – “To review and assess Michigan Tech’s benefit package
    without impacting total compensation to employees”
  – “To reduce Michigan Tech’s fringe rate by shifting
    compensation from benefits to salary”
                         BLG Members
•   Donald Beck, Professor
•   Jane Berner, Retiree
•   David Chard, Staff
•   Mike Hendricks, Controller
•   Amy Hughes, Internal Auditor
•   Deb Lassila, Budget Director
•   Tony Rogers, Associate Professor
•   Martha Sloan, Professor
•   Ingrid Cheney, Staff
•   Renee Hiller, Staff
•   Dana Johnson, Associate Professor
         BLG’s HealthCare Review
• Escalating Medical Costs
  – 2006 CY net costs: $11.2 million
  – 2007 CY net costs: $12.9 million
  – 2008 estimated CY net costs: $14.9 million
     • Average year-to-year increase of 15.5%
  – Net cost per employee (per year)
     • 2006: $8,878
     • 2007: $9,852
     • 2008 (estimate): $11,400
            Goals of the BLG
• Provide Options for Employees at Different
  Life Stages
• Continue to Provide a Premium-free Plan
• Encourage and Promotes Employee
  Involvement in Health Care Decisions
• Health Plan Administrator Capabilities
           BLG Recommendations
• Offer Two Employee Health Plans
   – HuskyCare PPO
   – HuskyCare HSA
• Implement a 10% Employee Premium Share
• University HSA Contribution
   – $750 single/$1500 family
• HuskyCare Dental/Vision Remain the Same
• Change Health Plan Administrator from BCBSM to Aetna
• Projected 2009 Health Plan Savings Should be Redirected into
  Salary
      2009 Health Plan Options
• HuskyCare PPO
  – Wellness Visits: covered 100%
     • Colonoscopies will now be covered for members over the
       age of 50
  – Single Deductible: $500/calendar year
  – Family Deductible: $1000/calendar year
  – Out-of-Pocket Max: $1,500 single/$3,000 family
    (includes deductible)
  – Once Out-of-Pocket is met, plan pays 100%
              HuskyCare PPO
• Services included in deductible
  – Hospitalization
  – Outpatient surgery
  – Inpatient Mental Health Care
                HuskyCare PPO
• Services NOT included in the deductible:
  – Office Visits: 35% copay
  – ER visits: $75 copay (waived if admitted)
  – Labs & X-rays: 10% copay
  – Outpatient Mental Health: 35% copay
  – Chiropractic, DME, Acupuncture, Massage & Physical
    Therapy: 35% copay
              HuskyCare PPO
• Services NOT included in Out-of-Pocket
  Maximum

  – Emergency Room Copays

  – Prescription Drugs
              HuskyCare PPO
• Prescription Drug Coverage
  – Generic: 10% copay ($5 min/$20 max)

  – Brand: 25% copay ($10 min/$40 max)

  – Mail Order: 2x copay (90 day supply)
                 HuskyCare PPO
• 2009 Employee Monthly Premiums (Pre-Tax): 10%
  Employee Cost Share
  –   Single: $40
  –   Two person: $84
  –   Family of 3: $108
  –   Family 4-6: $130
  –   Family 7+: $206
  –   F-Rider: $65/month
  –   S-Rider: $250/month
        Introduction
             to a
Health Savings Account (HSA)
  What is an Health Savings Account?
• Account requirements are mandated and regulated
  by the IRS
• Tax favored accounts that employees may use to
  pay for certain medical expenses for eligible
  individuals, spouses and tax dependents
     • deductibles, coinsurance, co-pays, RX expenses, etc
• HDHP’s can not pay benefits (except preventative)
  until deductible is met
     Health Savings Account
– HSA’s can be funded by both employer and
  employee (pre-tax) contributions
– HSA’s are owned and administered by the
  employee
– Cash contributions are deposited into FDIC
  insured bank
– Amounts over $2000 may be invested into
  mutual funds
      Health Savings Account
– Unused Balances
   • will roll over to the next year
   • can be used for future medical costs during
     employment as well as retirement (including
     premiums)
– There may be fees associated with the account
– How to pay for your medical expenses? Each
  account will be given a debit card
       2009 Health Plan Options
• HuskyCare HSA
  – Wellness Visits: covered 100%
     • Colonoscopies will now be covered for members over the
       age of 50
  – Single Deductible: $1,500/calendar year
  – Family Deductible: $3,000/calendar year
  – Out-of-Pocket Max: $2,500 single/$5,000 family
    (includes deductible)
  – All expenses are included in the Out-of-Pocket max
  – Once Out-of-Pocket is met, plan pays 100%
                 HuskyCare HSA
• Michigan Tech’s Health Savings Account (HSA)
  Contribution
   – Not taxable to employee
   – Single: $750/yr
      • $500 deposited January 1st, 2009
      • $250 deposited July 1st, 2009
   – Family: $1,500/yr
      • $1,000 deposited January 1st, 2009
      • $500 deposited July 1st, 2009
                 HuskyCare HSA
• Employee Contributions
  – Pre-taxed contributions
  – Annual employee contributions will be spread over your
    individual pay period (i.e. 24 pays)
  – Employees may put in post-tax money into the account at
    any time (adhering to the maximums below)
  – Maximums
     • Single: $3,000/calendar year minus $750 (ER) = $2,250
     • Family: $5,950/calendar year minus $1,500 (ER) = $4,450
     • Over age 55: additional $1,000/year
                   HuskyCare HSA
• Services included in deductible
   –   All Office Visits (35% after deductible)
   –   ER Visits (10% after deductible)
   –   Labs & X-rays (10% after deductible)
   –   Hospitalization (10% after deductible)
   –   Outpatient surgery (10% after deductible)
   –   All Prescription Drugs (10% after deductible)
   –   Physical and Massage Therapy (35% after deductible)
   –   DME’s (35% after deductible)
                 HuskyCare HSA
• 2009 Employee Monthly Premiums (Pre-Tax)
  –   Single: $0
  –   Two person: $0
  –   Family of 3: $0
  –   Family 4-6: $0
  –   Family 7+: $0
  –   F-Rider $65/month
  –   S-Rider $250/month
        What Plan is Best for Me?
• Factors to Consider
   - View on risk
   - Personal situation (size, claims, etc)
   - Affordability of employee HSA contribution
   - Comfort with administering an HSA
   - Spread cost vs. one payment (large claim expense)
   - Tax advantage & rollover capability
• Considering Purely Financial Examples:
  – Premiums
  – Worst Case Scenarios (meet the Out-of-Pocket Limit for family)
                     HuskyCare PPO                               HuskyCare HSA
                                                              (ER Contribution $750/$1500)


Family of 4-6            $1560              Premium                      $0
                         $3000              Out-Of-Pocket               $3500
                         $4560              Potential Cost              $3500

Single                   $360               Premium                      $0
                         $1500              Out-of-Pocket               $1750
                         $1860              Potential Cost              $1750

Two Person              $1008               Premium                       $0
                        $3000               Out-of-Pocket                $3500
                        $4108               Potential Cost               $3500

     NOTE: HSA plan considers the ER funding to get to OOP.
           The premiums under PPO is pre-tax so the net effect is not reflected
      HuskyCare Dental & Vision Plans
             2 year program (effective 2009 & 2010)



• HuskyCare Dental/Vision 1
  –   100% Class I – preventative (twice a calendar year)
  –   80% Class II – Fillings, extractions, root canals
  –   50% Class III – Crowns, gold fillings, dentures
  –   50% Orthodontics (up to $1,500 max)
   HuskyCare Dental & Vision Plans
          2 year program (effective 2009 & 2010)

• HuskyCare Dental/Vision 2
  – 100% Class I – preventative (twice a calendar year)
  – 50% Class II – Fillings, extractions, root canals
  – 50% Class III – Crowns, gold fillings, dentures
  – No orthodontia coverage
    HuskyCare Dental & Vision Plans
           2 year program (effective 2009 & 2010)


• Vision Plan under 1 & 2
  – 35% Office Visit co-pay (one every 12 months; per
    member)
  – $350 allowance every 24 months
    (frames/lenses/contacts; per member)
      HuskyCare Dental & Vision Plans
            2 year program (effective 2009 & 2010)

• HuskyCare Dental/Vision 1 - 2009 Employee Monthly
  Premiums (Pre-Tax)
  –   Single: $9
  –   Two person: $19
  –   Family of 3: $23
  –   Family 4-6: $26
  –   Family 7+: $36
  –   F-Rider: $9/month
       HuskyCare Dental & Vision Plans
             2 year program (effective 2009 & 2010)

• HuskyCare Dental/Vision 2 - 2009 Employee Monthly
  Premiums (Pre-Tax)

   –   Single: $4
   –   Two person: $8
   –   Family of 3: $10
   –   Family 4-6: $12
   –   Family 7+: $16
   –   F-Rider: $4/month
 Flexible Spending Accounts (FSA)
• Increased Maximum contribution for the Health FSA
  to $5,000
• Daycare FSA remains the same ($5,000)
• If participating in the HuskyCare HSA, expenses
  under an FSA can only be used for dental/vision
  expenses
              Other Benefits
• Life Insurance
  – Rates remain the same
  – Maximum (guaranteed) benefit is increased to
    $300,000
• Long-Term Disability
  – Rates for the Optional LTD have decreased
            On-Line Enrollment
        November 3 to December 3, 2008
• Access on-line enrollment through Employee Self
  Service (ESS)
• Login/password to access account is your ISO
  login/password
• On-line Instructions are located at:
  http://www.admin.mtu.edu/hro/TechSelect/index.sh
  tml
• For on-line enrollment questions, please contact
  Patty Kyllonen at 487-2480
              On-Line Enrollment
         November 3 to December 3, 2008
• All Employees Must Select Benefits through the
  On-line Enrollment Process
• Default Benefits for 2009 (for those that do not
  complete on-line):
   – HuskyCare HSA
   – No dental/vision coverage for 2009-2010
   – FSA’s will be cancelled December 31, 2008
          Aetna Insurance
    New Medical Plan Administrator
• Reasons for the Change
  – On-line tools & resources (Aetna Navigator)
  – Case & disease management
  – HSA management & tools
  – Available Reports
  – Flexibility in Administration
QUESTIONS?

								
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