2017 Annual Benefits Open Enrollment Overview : UHC Plan - PowerPoint PPT Presentation

2017 Annual Benefits Open Enrollment

Overview : UHC Plan Performance • Past years - – 2011 – Joined UHC, 20% decrease in cost from Anthem – 2012 – 0% premium increase, low loss ratio – 2013 – 5% premium increase – 2014 – 3.84% premium increase – 2015 – 3.5% premium increase, SFMC becomes network provider – 2016 – 0% premium increase, low loss ratio • Recent concerns – – Last twelve months of claims – 93% loss ratio (85% or lower is ideal) • Increased Rx claims • Increased outpatient claims • Accelerated Plan ($500 deductible) loss ratio – 127% – MOSERS FY18 contribution rate increases by 2%+ = $1.025 million cost increase • Priority going forward – affordable health care for employees, families and University

UnitedHealthcare Renew al • 11.7% increase in premium • University will continue to pay 100% of Base Plan employee only premium • Increase in Rx copays for Accelerated Plan only – $15/40/75 tier change • University not passing on increased cost for employee only premium at this time. However, there is an immediate need to identify cost control strategies: – Begin efforts to assess feasibility of self-insurance – Wellness programming tie to health insurance benefits

UnitedHealthcare Renew al • University will continue to provide: – Base Plan dependent premium supplements – Cafeteria plan funding • Employee premium cost share levels for Accelerated Plan remain the same

2017 Insurance Highlights • Medical Insurance – UHC – 11.7% premium increase – Base Plan ($1,500 deductible) • University will provide 100% paid employee only coverage • University will continue to provide dependent premium supplements at same levels – $125/month for spouse coverage – $175/month for children coverage – $325/month for family coverage • University will continue to provide $750 cafeteria plan funding – Accelerated Plan ($500 deductible) • Rx copay increase to $15/$40/$75 tiers • Employee cost share premium levels remain the same • University will continue to provide $250 cafeteria plan funding

2017 Insurance Highlights • Vision insurance - VSP (Vision Service Plan) - Plan B – frame allowance increases to $160 - No change in premiums • Dental Insurance - Delta Dental of MO - No change in coverage or premiums • Flexible Spending Accounts (MRA and Dependent Care Assistance) - HealthSMART Benefit Solutions

2017 Medical Insurance • Base Plan – Employee between 75% and 100% FTE, University will fund 100% premium – Employee between 50% and 74% FTE, University will fund 70% of premium – $750/year in cafeteria plan funding (Pro-rated for part time employees based on percent of assignment) – Deductibles - $1,500 individual/$3,000 family – Out of Pocket Maximums – • $5,000 individual/$6,850 family (HSA plan) • $5,000 individual/$10,000 family (MRA plan) – Rx Copays - after deductible is met • $10/$35/$60 retail pharmacy • $25/$87.50/$150 mail order pharmacy – University-paid supplement for dependent premiums • Spouse = $125/month • Child(ren) = $175/month • Family = $325/month – Health Savings Account (HSA) option available • Family members required to meet family deductible – Medical Reimbursement Account (MRA) option available • Family members can meet individual deductible

2017 Medical Insurance • Accelerated Plan – Employee contribution to employee premium based on Medicare wages, reported in Box 5 of the 2015 W-2 (Part time employees 75% and greater will have an annualized Medicare wage) <$27,000 $27,000 - $45,000 - $70,000 + $44,999 $69,999 $22/month $45/month $67/month $90/month – Employee between 50% and 74% FTE, University will fund 70% of premium – $250/year in cafeteria plan funding (Pro-rated for part time employees based on percent of assignment) – Deductibles - $500 individual/$1,000 family – Out of Pocket Maximums - $3,500 individual/$6,850 family – Rx copays - not subject to deductible or cost share • $15/$40/$75 retail pharmacy • $37.50/$100/$187.50 mail order pharmacy – Medical Reimbursement Account (MRA) - only option available

2017 Medical Insurance Employee Monthly Premiums UnitedHealthcare UnitedHealthcare Base Plan Accelerated Plan Monthly Dependent Monthly Premium Supplement Premium ( net of dependent supplement) Employee $0* Employee $22- $90** Spouse $383.04 $125/mo Spouse $648.43 Child(ren) $240.67 $175/mo Child(ren) $530.52 Family $552.52 $325/mo Family $1,120.00 *100% Paid by University **based on Medicare wages

2017 Medical Insurance Cafeteria Plan Funding • Base Plan - $750 – Will apply funding to: employee portion of medical premiums (part-time employees only), health savings account (HSA), dependent medical premiums, vision and dental premiums, and dependent care assistance and medical reimbursement account • Accelerated Plan - $250 – Will apply funding to: employee’s portion of medical premium • Prorated funding for part-time employees based on percentage of assignment

Health Savings Account (HSA) • Available with Base Medical Plan coverage • OptumHealth Bank (www.optumhealthbank.com) • Account features: – Balances roll over year after year – Interest-bearing – Portable • Use to pay for qualified medical expenses

Health Savings Account (HSA) • IRS Eligibility Rules - – Covered by a high deductible health plan – Cannot be covered by any other health plan that is a low deductible health plan (individual deductible must be at least $1,300) – Cannot be drawing Medicare benefits – Cannot be claimed as a dependent on someone else’s tax return – Employees who have received VA benefits in past three months (some exceptions)

Health Savings Account (HSA) • Contributions – Both employer and employee contributions are permissible – Employer contribution via Cafeteria Plan funding • ½ of annual employer-funded amount contributed in January with remaining ½ contributed February - December – 2017 maximum contribution levels: • Single Coverage = $3,400 • Family Coverage = $6,750 – 2017 Age 55+ Catch Up: Additional $1,000

Health Savings Account (HSA) • Distributions – Tax-free if used to pay for qualified medical expenses – Monies must be available in account at time of distribution – Use for qualified expenses incurred on or after account is opened – Can apply qualified medical expenses of spouse and children, even if not covered by your medical insurance

Health Savings Account (HSA) • Distributions – Qualified Medical Expenses: • Deductibles • Cost Shares • Out of pocket costs on medical claims • Over-the-counter medical items • Medicare insurance premiums • COBRA premiums • Long Term Care insurance premiums (based on federal tax deductible limits) • Patient Protection and Affordable Care Act legislation – Requires a doctor’s prescription for over-the-counter medical items. Keep copies for your records.

Health Savings Account (HSA) • Serviced through OptumHealth Bank • If electing HSA for first time: – Activate your account via portal login – After activation, Welcome Kits will be mailed to members • For current OptumHealth Bank HSA holders: – Existing bank account will continue to be used • Optional mutual fund investment – Account balance threshold - $2,000 – To waive investment fee charges, enroll in the eSaver product by calling 1- 800-791-9361, option 0 • All set up and monthly fees paid by University while having Base Plan medical coverage • OptumHealth Bank: 1-800-791-9361 or 1-866-234-8913

2017 Flexible Spending Accounts (MRA and Dependent Care Assistance) • Medical Reimbursement Account (MRA) – Available for both Base Plan and Accelerated Plan – Monies can be claimed immediately – “Use or Lose” feature, no roll over • Dependent Care Assistance Account – Available for both Base Plan and Accelerated Plan – Monies must be available in the account in order to claim reimbursement – “Use or Lose” feature, no roll over • 2017 Annual Contribution Maximums: – MRA - $2,600 – Dependent Care Assistance - $5,000

2017 Flexible Spending Accounts (MRA and Dependent Care Assistance) HealthSMART Website Login – https://maa-tpa.lh1ondemand.com/Login.aspx Contact Information: – Phone: 1-800-824-5034 – Fax: 1-866-513-9681 – Email: April.tennell@healthsmart.com

2017 Flexible Spending Accounts (MRA and Dependent Care Assistance) • Remember: File claims using UHC insurance card before using MRA debit card! • Can apply qualified medical expenses of spouse and children, even if not covered by your medical insurance • Direct Deposit available – HealthSMART Direct Deposit Authorization form on HR website • Substantiation of claims may be required per IRS guidelines • Patient Protection and Affordable Care Act legislation – will require a doctor’s prescription to accompany a reimbursement claim for some over- the-counter medical items, typically “medication” items