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 25 th – November 12 th • 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 of 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 offered 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 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. 6
Changes for 2018 - Continued Spousal Surcharge On the Mercer website on the “Get Started” tab, if you have a spouse on record, you will be required to answer these two questions: • Does your spouse have access to medical coverage through their own 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 7
Changes for 2018 - Continued 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. 8
Changes for 2018 - Rates 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 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. 9
Changes for 2018 – Rates Continued • Higher employee cost-sharing for dependent tiers on all three domestic medical plan options CPChem Rates Mercer Mercer Plan/Tier 2018 2016 Chemical 500+ 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 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. 10
Changes for 2018 – Plan Design Value CDH Plan - Addition of Out-of-Network deductible and out-of-pocket maximum Value CDH Plan Like the 2017 2018 PPO plan the In- In-Network/Out-of-Network In-Network Out-of-Network network Deductible EE Only $1,500.00 $1,500.00 $2,250.00 and Out-of- EE + Spouse $3,000.00 $3,000.00 $4,500.00 network EE + Child(ren) $3,000.00 $3,000.00 $4,500.00 amounts do EE + Family $3,000.00 $3,000.00 $4,500.00 not cross Out-of-pocket maximum apply. 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. 11
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 CPChem provides a quality drug plan. These changes are designed to drive better consumerism saving the employees and the plan money. 12
Changes for 2018 – Misc Changes • HSA Limits will increase to the new IRS limits 2017 2018 EE Only $3,400 $3,450 EE + all other dependent $6,750 $6,900 • FSAs Limits for 2018 2017 2018 Health Care FSA $2,550 $2,600 Dependent Care $5,000 $5,000 • Dialysis Limited to in-network facilities only • 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 13
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