CPChem Benefits Presentation 2018 Open Enrollment Overview October - - PowerPoint PPT Presentation

CPChem Benefits Presentation

2018 Open Enrollment Overview

October 2017

Table of Contents

• 2018 Open Enrollment Overview
• Background – “What Got Us Here”
• Changes for 2018
• Open Enrollment Communications Schedule

2

2018 Open Enrollment Overview

• Open Enrollment Period: October 25th – November 12th
• Ways to make your elections:

– By logging into the web site at www.mercerbenefitscentral.com/cpchembenefits (available 24 hours/day) – By calling 1-800-446-1422, option 1 (available from 8:00 a.m. to 5:00 p.m. U.S. Central time, Monday through Friday)

• Open Enrollment is your annual opportunity to make changes to

your health and welfare plans without a qualified status change

• Most elections will roll forward into the new year with the exception
• f the Flexible Spending Account contribution, the Health Savings

Account contribution and the Spousal Surcharge attestation

3

2018 Open Enrollment Overview – Cont.

• Dependents removed from coverage during OE will not be
• ffered COBRA
• Increases to life, accident and disability insurance require a

Statement of Health

• Eligible dependents include:

– Legally married spouses, and – Biological children, stepchildren, foster children, legally adopted children, children placed for adoption and children under permanent legal guardianship and/or sole managing conservatorships

• Failure to properly and timely respond to the post-enrollment

Dependent Verification process will result in the dependent(s) being dropped from coverage

4

What Got Us Here

• CPChem’s domestic medical plan is self-funded
• CPChem maintains more than 80% cost share – In 2018 CPChem’s share will be 84.3%
• Combined employer/employee cost increase is 14.3% increase for 2018

– Contributing factors warranting the increase:

• Company medical costs have increased from $35MM in 2010 to a projected $71MM in

2018

• Prescription drugs cost have increased from 18% of total medical spend in 2010 to 27% in

2016

• Increase number of high cost claimants (HCC)

– For 2016, 34% of HCC were spouses

• Non-urgent emergency rooms visits and egregious billing of out-of-network emergency

rooms – 2,947 visits to the ER with a total spend of $7,609,560 in 2016 – 42% non-urgent

5

Changes for 2018

New $100/month “spousal surcharge”

Description

– Additional $100/month employee premium charge for employees who cover working spouse who has access to other employer-sponsored coverage – Employees covering spouses will be defaulted annually into surcharge, with affirmative attestation to remove – Company will periodically conduct spot audit sampling and will require spousal surcharge related documentation for life events; timely and satisfactory response will be required

6

Extending coverage to employee’s spouses cost the CPChem Plan about $9,000 a year per

• spouse. Spouses who move to their own employer’s plan will save the CPChem plan money.

We want to focus our health plan subsidy dollars on our employees.

Changes for 2018 - Continued

Spousal Surcharge

7

On the Mercer website on the “Get Started” tab, if you have a spouse

• n record, you will be required to answer these two questions:
• Does your spouse have access to medical coverage through their
• wn employer?
• Do you plan to enroll your spouse in a CPChem medical plan?

Depending on your responses will determine whether the surcharge will be applied.

– Spouses who work for CPChem are not subject to the surcharge – call the Benefits Center to have the surcharge removed – Spouses who are self employed or otherwise not eligible for company provided medical coverage are not subject to the surcharge – You must make an active election to have the surcharge removed otherwise the surcharge will be applied

Changes for 2018 - Continued

8

Higher employee cost-sharing for dependent tiers Description

• Starting in 2018, employees will pay 1.4% to 2.0% more of the

total premium cost when they enroll in a domestic medical plan with dependents versus enrolling in employee-only coverage (rates on next slide)

CPChem is committed to providing quality health benefits to our employees at reasonable

• prices. Having employees consider removing dependents from the CPChem plan who have

coverage with another employer is a way to reduce plan costs.

Changes for 2018 - Rates

9

CPChem is committed to providing quality health benefits to our employees at reasonable

• prices. Having employees consider removing dependents from the CPChem plan who have

coverage with another employer is a way to reduce plan costs.

2018 Monthly Rates 2017 Monthly Rates Change EE CPChem Total EE CPChem Total $ per paycheck

Select EPO Plan

Employee Only $193.92 $678.88 $872.80 $169.72 $594.18 $763.90 $12.10 Employee + Spouse $467.64 $1,499.40 $1,967.04 $382.51 $1,339.10 $1,721.61 $42.57 Employee + Child(ren) $402.55 $1,290.69 $1,693.24 $329.27 $1,152.70 $1,481.97 $36.64 Employee + Family $560.25 $1,796.32 $2,356.57 $458.26 $1,604.29 $2,062.55 $51.00

Choice PPO Plan

Employee Only $80.45 $678.88 $759.33 $70.41 $594.18 $664.59 $5.02 Employee + Spouse $211.92 $1,499.40 $1,711.32 $158.70 $1,339.10 $1,497.80 $26.61 Employee + Child(ren) $182.42 $1,290.69 $1,473.11 $136.61 $1,152.70 $1,289.31 $22.91 Employee + Family $253.88 $1,796.32 $2,050.20 $190.12 $1,604.29 $1,794.41 $31.88

Value CDH Plan

Employee Only $0.00 $678.88 $678.88 $0.00 $594.18 $594.18 $0.00 Employee + Spouse $30.60 $1,499.40 $1,530.00 $0.00 $1,339.10 $1,339.10 $15.30 Employee + Child(ren) $26.34 $1,290.69 $1,317.03 $0.00 $1,152.70 $1,152.70 $13.17 Employee + Family $36.66 $1,796.32 $1,832.98 $0.00 $1,604.29 $1,604.29 $18.33

Changes for 2018 – Rates Continued

• Higher employee cost-sharing for dependent tiers on all three domestic

medical plan options

10

CPChem provides quality health plans. The 2018 EE premiums are below the 2016 benchmark numbers for 2 of our 3 health plans. Even when you include the spousal surcharge we are still below the 2016 benchmark for 2 of our 3 plans. Plan/Tier CPChem Rates 2018 Mercer 2016 Chemical 500+ Mercer 2016 National 500+ EPO EE - Only $193.92 $133.00 $139.00 Family $560.25 $422.00 $487.00 PPO EE - Only $80.45 $150.00 $132.00 Family $253.88 $429.00 $467.00 CDH EE - Only $0.00 $55.00 $84.00 Family $36.66 $186.00 $321.00

Changes for 2018 – Plan Design

11

Value CDH Plan - Addition of Out-of-Network deductible and out-of-pocket maximum

Value CDH Plan

2017 2018 In-Network/Out-of-Network In-Network Out-of-Network Deductible EE Only $1,500.00 $1,500.00 $2,250.00 EE + Spouse $3,000.00 $3,000.00 $4,500.00 EE + Child(ren) $3,000.00 $3,000.00 $4,500.00 EE + Family $3,000.00 $3,000.00 $4,500.00 Out-of-pocket maximum EE Only $4,500.00 $4,500.00 $6,750.00 EE + Spouse $9,000.00 $9,000.00 $13,500.00 EE + Child(ren) $9,000.00 $9,000.00 $13,500.00 EE + Family $9,000.00 $9,000.00 $13,500.00 Similar to the structure of the PPO plan to maintain the flexibility to go out of network when necessary, and to encourage in-network utilization.

Like the PPO plan the In- network and Out-of- network amounts do not cross apply.

Changes for 2018 – Pharmacy

• Implement Aetna’s drug exclusion list, removing 115 drugs from coverage

and impact 1,133 members

• Remove brand drugs from preventive drug list

– Generic preventive co-pay structure unchanged – For brand preventive drugs, CDH Plan will follow the EPO/PPO plan - preventive drugs are not subject to the CDH’s medical deductible

• Increase non-preferred brand drug copays and co-insurance

– Increase minimum and maximum for retail non-preferred drugs from $45/$150 to $50/$200 – Increase mail order copay for non-preferred drugs from $120 to $125

12

CPChem provides a quality drug plan. These changes are designed to drive better consumerism saving the employees and the plan money.

Changes for 2018 – Misc Changes

• HSA Limits will increase to the new IRS limits
• FSAs Limits for 2018
• Dialysis Limited to in-network facilities only

13

2017 2018 EE Only $3,400 $3,450 EE + all other dependent $6,750 $6,900 2017 2018 Health Care FSA $2,550 $2,600 Dependent Care $5,000 $5,000

• CPChem increases the limits for the HSA as allowed by the IRS.
• IRS announces the FSA limit increases later in the year, beyond the time when we

could incorporate them in the Open Enrollment requirements.

• Dialysis change was low impact and an opportunity to eliminate unnecessary out of

network utilization

Wellness Program – Preventive Care Incentives

• As the cornerstone of our Wellness Program, we are rolling out a preventive

care incentive program in 2018 – total incentive $200/year

• Progress towards the incentives will be tracked on the existing ActiveHealth

vendor website

• Wellness actives will be validated with Aetna or via claim document review
• Preventive Activities:

– Physical - $50 (CPChem to coordinate on-site physicals where feasible) – Biometric Screening – must participate in an on-site biometric screening or at a Quest lab - $25 – Nicotine free – this is part of the biometric screening - $15

• Employees who test positive for nicotine will have the option to participate in a smoking cessation program to

earn the incentive

– Dental Exam/Teeth cleaning - $10

• Once you complete all 4 activities you qualify for an additional $100!
• You can request your gift card on the ActiveHealth website, but only one time

per year - you should only request the card when you have completed all the activities or have completed as many as you plan to complete

14

Wellness Program – Preventive Care Incentives - Rationale

• In 2016 only 17.7% of our adult medical plan members had a physical
• High-cost-claims, one the key driver of our medical costs, can occur when

– preventable conditions are not identified and managed appropriately – on-going conditions are not monitored or managed for the best result

15

CPChem encourages employees to take an active role in their own health. By offering an incentive for preventive care activities we hope employees will take action to improve or maintain their health. Taking better care of yourself and dealing effectively with on-going conditions can have a tremendous impact on your health and quality of life and on the medical claims.

What Can You Do?

WE’RE IN THIS TOGETHER

• There are things you can do to slow down the trend:

– Treat the medical plan’s money as if it’s your money

• Don’t go to out-of-network facilities, where the company pays 2 times more than in-

network facilities, even if the out-of-network facility unethically waives copays

• Don’t go to out-of-network facilities just because you’ve met your out-of-pocket

maximum for the year, it still costs more for CPChem even if it doesn’t cost you anything

• Choose generic drugs when available

– Go to Emergency Rooms when needed, but only for emergencies

• Remember 42% of the ER visits were non-urgent
• Total spend was $7,609,560 for 2016

– Utilize Teladoc or an Urgent Care when appropriate

16

What Can You Do?

WE’RE IN THIS TOGETHER

• There are things you can do to slow down the trend:

– Stay on top of your preventive care – it’s better for everyone, especially YOU

• This year the Wellness Program will pay you to have your preventive care

– If your spouse works for an employer that provides medical coverage, research whether it would be a better choice to move them to their employer’s coverage rather than CPChem

17

2018 Open Enrollment Communication

18

Communication Item Date

OE postcards mailed October 11 OE guides mailed By October 21 Roadshows and webcasts October 19 – November 2 Open Enrollment Start October 25 Open Enrollment End November 12 Confirmation Statements mailed December 1 New ID Cards (as needed) Prior to January 1

1

Notice to Participants

This Chevron Phillips Chemical Benefits presentation, including the examples contained herein, are not intended to constitute a promise or contractual commitment by the Company or a right to benefits under any of its employee benefit plans. The Company reserves the right to unilaterally change or terminate any or all of its employee benefit plans at any time and without prior notice. Also, modifications may be necessary to comply with applicable legal requirements. In the event of any inconsistency between a statement contained in this presentation and the relevant plan document, the plan document will control. Employees covered by collective bargaining agreements will also be subject to the benefit plan provisions contained in the applicable collective bargaining

• agreements. In addition, this presentation is not intended to be and should not be

treated as investment advice or tax advice. Participants should not rely upon the information contained in this presentation as a substitute for obtaining specific tax advice

• r investment advice from their tax advisor or financial planner.