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									Your Benefits at Northwestern

        Northwestern University Benefit Options
                        2011                      1
Today’s Agenda

 • Your 2011 Benefit Plan Options
 • Making Your Decisions
 • Preparing to Enroll Online
   ―NetID and Password
 • Enrolling Online
 • Resources
Benefits Contact Information
  •   Questions and Appointments :
       ―Main Number 847-491-7513
  •   Benefits Counselors:                               Last
       ―Ruthann Cameron            847-491-4019          A – L (EV)
       ―Sherry Shambee             847-491-3520          M - Z (EV)
       ―Jonathan Kemler            312-503-0494          Chicago
  •   Enroll online no later than 31 days from your date of hire
Benefits Offered by NU
 HEALTH & Related                       LIFE
 •   Health - PPO and HMO               •   Supplemental Term Life Insurance
 •   Dental - PPO and HMO               •   Spouse Term Life Insurance
 •   Vision                             •   Dependent Child Term Life Insurance
 •   Health Savings Account
 •   Health Care
     Flexible Spending Account          •   Short Term Disability
 •   Limited Use Health Care Flexible   •   Long Term Disability
     Spending Account                   •   Long Term Care

 DEPENDENT CARE                         RETIREMENT
 •   Dependent Care                     •   403(b) Retirement Plan
     Flexible Spending Account
 •   University Matching Funds          EDUCATIONAL ASSISTANCE
 •   Back Up Child Care Program

What is a PPO?

 PPO: Preferred Provider Organization
    Freedom to choose any doctor or specialist
    Greater reimbursement when in network
    Greater flexibility
    Blue Cross Blue Shield
    Coverage at 80% or 90% depending on plan choice
    No pre-existing exclusions
    Preventive care covered at 100%

Coverage Tier

                                 When you name dependents to cover for a particular
           Coverage Tier         plan, the online enrollment system determines your
                                 coverage tier and premium.

                 If you name . . .                    Then you will have . . .
        No dependent                           You Only coverage

        A spouse*                              You + Spouse coverage

        A child or children                    You + Child(ren) coverage

        A spouse and a child or children       You + Spouse + Child(ren) coverage

 *Same sex domestic partners also covered. Must complete the declaration form first
Northwestern PPO Plans
  “You only” coverage, care from in-network providers
                      Premier PPO        Select PPO       Value PPO

     Deductible             $250               $500            $1,400

   Coinsurance              10%                20%              20%
     Office Visit                                         Deductible &
    Copayment           $25 / $35          $25 / $35      coinsurance

                                   Annual Out-of-Pocket
                    Single             Family          Single            Family
                    In-Network         In-Network      Out-Network       Out-Network
Premier PPO         1,800              5,400           3,600             10,800

Select PPO          2,200              6,000           4,400             12,000

Value PPO           3,000              8,000           6,000             16,000

Value PPO Plan
“You + Spouse” coverage, care from in-network providers

                   Premier PPO      Select PPO       Value PPO

    Deductible         $750           $1,500           $2,800
  Coinsurance          10%              20%             20%
   Office Visit                                      Deductible &
   Copayment           $25              $25          coinsurance

  For example: Value PPO plan
  • You pay up to $2,800 for covered health care expenses – deductible
  • Then you pay 20% for covered health care expenses,
    the plan pays 80% - coinsurance
  • Up to the out-of-pocket maximum

Value PPO and HSA

 •   Must be enrolled in Value PPO
 •   Used for qualified health care expenses
 •   Contributions through payroll deduction
 •   Administered through Payflex
 •   University Match for first-time HSA participants
 •   Value PPO deductibles – Single $1,400/Family $2,800
 •   IRS HSA Limits – Single $3,050/Family $6,150

Value PPO Plan + HSA
       Part 1: High-deductible Health Plan                       Part 2: Health Savings Account (optional)

 Highest deductible, lowest premium                          Triple tax savings:
                                                              Lower taxable income
 You pay coinsurance – not copayments –                       Pay health care expenses with tax-free money
 after you pay the deductible                                 Account earnings are not taxed

 Wellness-preventive care 100% covered (in                   You own the account – it rolls over and is portable
  60% (out of network) after deductible has been             Use it in 2011 or save it for future expenses
                                                             University matches your 2011 contributions,
 Coverage and prescription drug plan administered            up to half the annual contribution limit
 by Blue Cross                                               ($1,400 for "you only", $2,800 for "you + family")

 Health care and prescription drug expenses both             Account administered by Payflex
 apply to your deductible

              Part 3: Limited-use Flexible Spending Account (optional) Pre-Tax Money
    to pay for medical health/prescription care expenses after deductible is met, as well as dental and vision expenses
       Health Savings Account
For 2011, the University will match your contributions
dollar-for-dollar up to ½ of the maximum contribution
                              *initial contribution only
For example:         If you contribute...   NU contributes…
                            $700                  $700
 “You Only”
                      ($58.33 per month)    in January 2011

                        $1,400 annual maximum
                     If you contribute...   NU contributes…
                           $1,400                 $1,400
 “You + Spouse
                      ($116.67 per month)    in January 2011
and/or Child(ren)”

                         $2,800 annual maximum

Value PPO
 •   Northwestern is allowing you to contribute the annual deductible for
     the Value PPO to the HSA account via payroll deductions. The IRS
     limits are higher. If you wish to contribute beyond the Value PPO
     deductible up to the IRS limit, you may do so by contacting PayFlex

 •   Value PPO deductibles
      ―Single $1,400
      ―Family $2,800

 •   IRS Limits to the HSA for 2011:
      ―Single: $3,050
      ―Family: $6,150
 •   For individuals age 55 and older by December 31, 2011, additional “catch-up”
     contributions of $1,000 for 2011 are allowed and may be made via payroll
Important PPO Plan Details
 •   Enrollment Opportunities
      ―No later than 31 days of hire date with University
      ―No later than 31 days of a qualifying event
      ―Open Enrollment
 •   Claims must be filed no later than 12 months from the
     date of service, otherwise the claim is denied
 •   Vision care discount
 •   Infertility Coverage
 •   Must contact Medical Services
 •   Advisory within 48 hours of emergency room treatment
     or admission to hospital

What is an HMO?

  HMO:  Health Maintenance Organization
    Primary Care Physician (PCP)
    Referrals required from PCP
    Lower costs
    HMO Illinois

2011 HMO Plan Choices

                                             HMO Illinois

         Copayment           $25 PCP / $35 Specialist / $100 ER Visit
                                        Outpatient surgery = $250
                                          Inpatient stay = $500

         Coinsurance                             None

                        Coverage Type - “You Only”                    =$1,500
 Annual Out-of-Pocket   Coverage Type - “You + Spouse                 =$3,000
                 Max    Coverage Type - “You + Child(ren)”            =$3,000
                        Coverage Type - “You + Spouse + Child(ren)”   =$3,000

HMO Details

 •   Must seek care from an HMO network provider
 •   No Claim Forms
 •   Vision Coverage Discount
 •   Infertility Coverage
 •   Pre-existing conditions are covered
 •   Must contact PCP within 48 hours of emergency room treatment or
     admission to hospital
 •   PCP’s limited to Participating Medical Groups
      ―Women may choose Ob/GYN and/or PCP
      ―Children may have Pediatrician as PCP
      ―Spouse may choose different PCP
 •   Preventive care covered at 100%

2011 PPO Prescription Coverage
PPO prescription drug coverage
                                  Premier PPO*               Select PPO*                Value PPO
       Copayment        Generic $10, Preferred Brand $30, Non-preferred Brand $60
                                                                                      after deductible
30-day supply, retail               Managed by Express Scripts (ESI)
                                                                                      Managed by ESI

       Copayment        Generic $20, Preferred Brand $60, Non-preferred Brand $120
90-day supply, mail                  Managed by Express Scripts (ESI)                       20%
                                                                                      after deductible
90-day supply, retail   Generic $20, Preferred Brand $60, Non-preferred Brand $120    Managed by ESI
                                  Purchased at Walgreens Pharmacy only
   Annual Out-of-                                                                    Included in Value PPO
      Pocket                               $1,500 per person
                                                                                          Out of Pocket
     Maximum                              Express Scripts (ESI)                             Maximum

2011 HMO Prescription Coverage

                                            HMO Illinois

          Copayment                Generic $10, Preferred Brand $30
  30-day supply, retail               Non-preferred Brand $60

        Co-payment                 Generic $20, Preferred Brand $60
  90-day supply, mail                 Non-preferred Brand $120
      90-day supply,
                                    At Walgreens Pharmacy only *
  Annual Prescription
                                          $1,500 per person
   Out-of-Pocket Max

                   To be covered, in-network pharmacies must be used
                    Generic Drugs vs. Brand Name – greater savings
                    Prior Authorization on some drugs may be required

Finding Your Doctor
                      Blue Cross PPO, HMO IL
                       And PPO Dental plans


Enrollment Steps


Health Decision Toolkit
                          Health Plan Comparison Chart:
                          Compare up to 3 medical plans at
                          one time.

                          Health Care Expense Estimator:
                          See how much you will pay in
                          premium and out of pocket for your
                          medical services.

                          Flexible Spending Account
                          Estimator: See how much you can
                          save in taxes by having your out of
                          pocket medical expenses placed in
                          an FSA

Dental - How Plans Differ

 •   Blue Cross Blue Shield PPO    •   First Commonwealth DHMO
      ―Choose your own Dentist -        ―Select Dentist from
        Flexibility                        Participating Dental
      ―Dental Implant coverage             Groups
      ―No orthodontia for adults        ―No Dental Implant
      ―$50 Calendar year                   Coverage
        deductible ($150 family         ―No Deductibles
        maximum)                        ―Unlimited Benefit
      ―Annual Benefit Limit -           ―Lower Costs
        $3,000 person
      ―Higher Costs

Comparison of Dental Plans

 •   Vision Care Plan Offered By EyeMed Vision Care
 •   Provider Information
      ―Choose “Insight” from the provider locator dropdown box
 •   Benefits include:
      ―Examination - $10 copayment
      ―Discounts on Frames, Lenses, Contact Lenses, etc.
      ―Stand Alone Plan
 •   Refer to EyeMed flyer in packet or on website

     *HMO IL has a built in vision plan. The PPO’s have a vision discount plan
     available. Both provide assistance with eye exams, frames, lenses, contacts
Healthcare FSA

  •   Administered by Payflex
  •   Eligible Expenses
       ―Health - doctor/ prescription co-pays, deductibles and
         limited over the counter items (see Payflex website listing)
       ―Dental - non cosmetic
       ―Vision - out of pockets expenses
  •   Monthly and Annual Limits
       ―Maximum: $12,000 annually
           Minimum: $240 annually
  •   Limited-Use FSA

FSAs and HSAs Compared

Dependent Care FSA

 •   Administered by PayFlex
 •   Full-Time employees only
 •   Must be claimed as a dependent on tax return
 •   Qualifying Dependents
      ―Children through the age of 12
      ―Spouse who is incapable of self-care
      ―Any other dependent who is incapable of self-care (parent, in-
        laws, sibling, child over age 13)
 •   Monthly and Annual Limits
      ―Maximum:$5,000 annually ($2,500 if both parents participating)
      ―Minimum: $240 annually

Dependent Care FSA cont’d
  Employee elects to contribute $5,000

      If your household                     Percent of election                       Maximum
         earnings are:                       matched by NU:                          NU match:*
         Up to $50,000                                80%                                $4,000

      $50,001 - $60,000                               60%                                $3,000

      $60,001 - $80,000                               40%                                $2,000

     $80,001 - $100,000                               20%                                $1,000

   * Your most recent IRS 1040 and the Dep Care Match form are required to enroll and verify income for the NU
   Match. The University Match is prorated during the calendar year. Your spouse must also work full-time or be
   a full-time student.
Dependent Care FSA cont’d

 • IRS Form 1040 required
 • University Match prorated during
   calendar year
 • Spouse must also work full-time or be
   a full-time student

Dependent Care Account Back Up
Child Care Program

 •   Primary Childcare          •   $25 per day, $150 annual
     Provider is Unavailable        maximum per family
 •   Can not be used as sick    •   University Approved
     childcare                      Provider
 •   Only full-time employees
                                     ―Kindercare - multiple
                                       Chicagoland locations
     are eligible
                                     ―McGaw YMCA
 •   Administered through
     the office of Work/Life

PayFlex (FSA Administrator)
 •   FSA Plans
      ― FSA Claims Administrator – PayFlex
             - For all FSA Health, Limited Use, and Dependent Care
      ― Option to use a debit card for health care expenses
      ― Paper claim forms required for Dependent Care FSA expenses
 •   Approved PayFlex merchants:
      ― Doctors, Hospitals, Dentists, Pharmacies etc.
      ― Wal-Mart, Walgreens, CVS
      ― Other discount and grocery stores if they have met the IRS data requirements
 •   Deadline for claim submission:
      ― Health care expenses incurred by March 15, 2012 can be applied to 2011
          account balances
      ― The deadline for submitting 2011 claims is March 31, 2012
 •   List of eligible expenses:
 •   Please keep your receipts, as PayFlex reserves the right to request the receipt or
     explanation of benefits (EOB); otherwise, debit card is frozen

PayFlex cont’d

Disability Plans

Short Term Disability                         Long Term Disability
•   Eligibility and Participation             • Eligibility and Participation
     ― No later than 31 days of eligibility        ― Enroll  no later than 31 days of
     ― Deduction and Benefit start the               hire date
         month after accruing 1 year of NU         ― Deduction and Benefit coverage
         service                                     start the month after accruing 1
     ― Drop only at Open Enrollment or               year of NU service
         within 31 days from a qualifying          ― Must be age 24 and have 1 year
         change in family or employment              of service
         status                                    ― Waiver of one year wait
•   Benefit                                   •   Benefit
     ― 60% of monthly salary                       ― 60% of last working salary
     ― 14 day waiting period                       ― Social Security Disability Income
     ― Up to 180 days coverage (6                    is an offset
         months minus 14 days)                     ― Begins 180 days after disability (6
     ― Vacation & Sick pay are off-sets              months)
                                                   ― Vacation and Sick Time Are
Long Term Care
 •   Coverage to assist with cost of    •   Benefit
     services for:                           ―$100 - $200 daily benefit
           - Home Healthcare                   up to 5 years
           - Adult Daycare                   ―90 waiting period
           - Assisted Living Facility        ―Portable and rates are
                                               “locked” in at age benefit is
           - Nursing Home                      elected
           - Hospice Care               •   Example of Premium
 •   Helps to pay for the care you           ―Age - 30, Daily Benefit -
     need when you can no longer               $100,
     care for yourself                           - Guaranteed Benefit
 •   Enroll no later than 31 days of               Cost - $8.70 per month
     hire date                                   - Automatic Benefit Cost
 •   Paper application form                        - $26.77 per month
Life Insurance (Employee)

Basic                                Supplemental
•   Paid for by NU (first $50,000)   •   Paid for by employee
•   Coverage 2 1/2 times annual      •   Multiple of annual salary (up to
    salary                               5 times/$1,000,000 maximum)
     ―Not to exceed $250,000         •   Up to 2 times annual salary
                                         may be elected without
     ―$50,000 is system default -        Evidence of Insurability no
        has no imputed income            later than 31 days of hire date
•   As of age 65, coverage factor        or if electing 3 times or more
    is reduced                           coverage. (EOI after 31 days
                                         of hire date)
•   Administered by ING
                                     •   Premiums based on age and
                                         amount of coverage
                                     •   Administered by ING

Life Insurance (Family)

Spouse                            Children
•   Spouse Life                   •   Children Life
     ―$10,000 increments               ―$2,000 increments to
      maximum of:
                                         maximum of $10,000
      100% of Employee Basic +
      Supplemental Life                ―Premiums $0.256 per
                or                       $2000 of coverage
       $500,000 whichever comes
    ―Coverage exceeding
     $30,000 requires EOI
    ―Premiums based on age
     and amount of coverage

Travel Accident Insurance

 •   Covered when travelling on University business
     (excludes commute to and from work)
 •   Coverage is 3 times employee’s base pay:
     ―Minimum of $100,000
     ―Maximum of $250,000
 •   Fully paid by Northwestern

Beneficiary Review
 •   You Must Provide
      ―Address and Date of Birth
      ―Social Security
 •   Changes to Your Beneficiary Designations
      ―Birth of child
      ―Current Beneficiary Dies
 •   Can be changed at any time online through HRIS Self-Service

Educational Assistance (Employee)
    •   Eligibility
         ―Full-time employees only
         ―Beginning of 1st full term
    •   Undergraduate & Graduate Study
         ―85% discount for the School of Continuing
         ―75% for Graduate Classes in all graduate
    •   Maximum $10,000 billed amount per calendar
    •   Any educational assistance above $5,250 and
        paid by NU is taxable income

Tuition Benefits (Family)

Reduced Tuition                           Portable Tuition
•   For Spouses and Children of Full-     •   After 5 continuous years of service
    time Employees Only                        ―Dependent Children under
•   After 6 months of service                     age 25
      ―85% off undergraduate                   ―For Undergraduate study
        classes at the School of                  only
        Continuing Studies                     ―Employee must be full-time
•   After 5 years of continuous service        ―Must provide dependent
      ―40% reduction in tuition at                eligibility
        NU’s undergraduate program.       •   Benefit is 40% of billed tuition not
                                              to exceed 40% of NU billed tuition
                                          •   Limited to 8 full-time semesters or
                                              12 full-time quarter

NU 403 (b) Plans

 •   Tax deferred retirement plan (sister plan to 401(K))
 •   2011 Annual IRS limit of $16,500 (additional $5,500 if
     over age 50)
 •   Contributions
      ―Salary Deferral
 •   NU Plans
      ―NU Retirement Plan
      ―NU Voluntary Savings Plan (VSP)

NU Voluntary Savings Plan (VSP)

 •   Available to employees not eligible to contribute to the
     NU Retirement Plan (have not met age and/or service
 •   Unmatched Employee contributions only
 •   Same investment options as the NU Retirement Plan
 •   No eligibility waiting period

Eligibility for NU Retirement Plan
 Unmatched Contributions
    ―Northwestern contributes 5% of eligible pay regardless of participation
    ―Must be 24 years of age with 1 year of service (1 year waived if a
       participant in prior tax-exempt educational or research organization or a
       state educational organization receiving employer contributions)
 Matched Contributions (Employee and Employer)*
    ―Elects up to 5% of eligible pay
    ―Must be 24 years of age with 1 year of service (1 year waived if a
       participant in prior tax-exempt educational or research organization or a
       state educational organization receiving employer contributions)

 Supplemental Contributions (Employee)*
    ―Must elect to contribute maximum percentage (5%) to Matched Plan
       (when eligible) prior to making supplemental contributions

    *These sources count towards the IRS annual Employee contribution limit of $16,500 ($22,000
       if age 50 or older)
403 (b) Retirement Plan

   (ER)         Matched (EE) Matched (ER)      Total:
    5%*             1%           1%              7%
    5%*             2%           2%              9%
    5%*             3%           3%             11%
    5%*             4%           4%             13%
    5%*             5%           5%             15%

     *Immediate Vesting-If you leave NU, all
     contributions are yours
403(b) Investment Options
 •   Two Investment Companies - Choose one firm or both
      ―Fidelity Investments
 •   Wide array of fund choices
 •   Fund allocations may be changed at any time with the
     investment company
 •   Salary deferrals may be changed at any time online
     through HRIS Self Service (after completing your new
     hire elections)

Enrolling Online

•   The Self Service URL is:
•   Enter your NetID and password
•   Click the yellow Sign In button
Navigate to Benefits Enrollment

                     Click the Benefits Enrollment link found
                     under the Benefits folder.

Benefits Enrollment

                      Click the
                      Help link
                        at any
                       time for

                       Click the
                       button to
                      begin the
                      t process

Benefits Enrollment

Adding your Provider ID

Submission Process

Submit Again


Coverage Effective Dates
 •   Health, Vision, Dental, Life and Long Term Care, Flexible
     Spending Accounts
      ―First of the month following your hire date (other than the first of
        the month)
      ―First of the month (if hired on the first of any month)
 •   Short and Long Term Disability
      ― First of next month after accruing one year of NU service
          - Important: Must enroll no later than 31 days of hire despite
            one year waiting period
 •   403(b) Plans
      ― First of next month after accruing one year of NU service and
        age 24 for Unmatched and Matching Plans
      ―First of the month following your on line application for Voluntary

Enrollment Opportunities

 •   Open enrollment
 •   Coverage beginning January 1 st
 •   No later than 31 days of your hire date
 •   No later than 31 days of a qualifying event for Health,
     Dental, Vision & FSA
      ―Marriage, birth, loss of coverage, certain changes in
       employment status, divorce

After You Enroll….
 This is what you need to do:

 •   You may view your elections online using HRIS Self
 •   If you enroll in the Value PPO Plan and the HSA,
     PayFlex will mail an HSA Welcome E-mail with
     instructions on how to establish your account
     within ten days after you enroll
 •   New ID cards will be distributed within 2 weeks of




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