NOVEMBER 1 15, 2019 Why? Promote benefits package that supports - PowerPoint PPT Presentation

Active Open Enrollment NOVEMBER 1 – 15, 2019 Why? ► Promote benefits package that supports work-life balance . ► Continue to emphasize the high-deductible plan choice . ► Maintain ACA compliance with coverage offer to 95% of employees. 2

Health Plan Financial Status INFLATION $60,000,000 9% Medical 8.5% Rx $55,000,000 $50,000,000 $45,000,000 $40,000,000 $35,000,000 2014 2015 2016 2017 2018 2019 Premiums Claims 2014 2015 2016 2017 2018 Est. 2019 Premiums vs. Claims $1,628,268 -$2,104,063 -$5,057,833 -$2,744,069 -$3,377,825 $850,454 UA Supplement + $2,000,000 + $1,200,000 + $2,000,000 3

Health Plan Reserve Fund As a self-funded health plan , UA assumes the financial risk of all claims incurred by employees & dependents. We use our reserve fund to collect premiums and pay claims. It is recommended to maintain a funding level equal to 20% of annual claims expenses. $15,000,000 $13,000,000 $11,000,000 $9,000,000 $5.6m $6.8m $3.7m - $2.8m - $5.4m - $0.5m - $4.6m $7,000,000 $5,000,000 2013 2014 2015 2016 2017 2018 2019 Reserve Fund Balance Recommended Reserve Target 4

Dental Premiums Tier 2019 2020 Employee $28.09 $29.34 Employee + 1 $55.04 $57.49 Family $79.75 $83.31 Vision Premiums Tier 2019 2020 Employee $5.74 $5.74 Employee + 1 $10.59 $10.59 Family $18.52 $18.52 Disclaimer: This presentation is intended to serv e as a high-lev el benef its ov erv iew. It is not an exhaustiv e list of all requirements, limitations or exceptions related to insurance cov erages or 5 tax-f av ored accounts. Employ ees are strongly encouraged to v isit hr.ua.edu/benef its/openenrollment f or additional inf ormation and more comprehensiv e resources.

ACTIVE ENROLLM LLMENT CONTINUES! Your current benefits will not roll over into the new year. You must ACTIVELY participate in Open Enrollment by logging in to BenefitFocus. Select your health, dental, vision coverage & flexible spending accounts, or … NO CO COVERA VERAGE in 2020 6

Teladoc Teladoc is a telemedicine company that uses telephone and videoconferencing technology to provide 24/7 on-demand remote medical care for acute, non-emergency illnesses. The cost per Teladoc visit is $45 . PPO HDHP Before Deductible $45 $45 After Deductible $20 $9 Teladoc.com/Alabama 1-855-477-4549 Disclaimer: This presentation is intended to serv e as a high-lev el benef its ov erv iew. It is not an exhaustiv e list of all requirements, limitations or exceptions related to insurance cov erages or tax-f av ored 7 accounts. Employ ees are strongly encouraged to v isit hr.ua.edu/benef its/openenrollment f or additional inf ormation and more comprehensiv e resources.

Applied Behavior Analysis (ABA) ABA is a new therapy benefit for children ages 0 - 18 with an Autism Spectrum Disorder diagnosis, subject to approval under BCBS medical policy guidelines. HB284 requires that all fully-insured, large group health plans in Alabama cover ABA. It is an optional benefit for self-funded plans like UA . UA will offer this therapy benefit with a 20% coinsurance, subject to the first-dollar deductible and the following maximums per year: Annual Maximums per Child Age Band Maximum 0 – 9 Years $20,000 10 – 13 Years $15,000 14 – 18 Years $10,000 Disclaimer: This presentation is intended to serv e as a high-lev el benef its ov erv iew. It is not an exhaustiv e list of all requirements, limitations or exceptions related to insurance cov erages or tax-f av ored 8 accounts. Employ ees are strongly encouraged to v isit hr.ua.edu/benef its/openenrollment f or additional inf ormation and more comprehensiv e resources.

Short Term Disability Short-Term Disability pays 60% of your salary if you become temporarily disabled, meaning that you are not able to work for a short period of time due to illness/pregnancy or accident . UA will offer this post-tax, employee-paid benefit beginning January 1, 2020 . • Current Full-Time Employees: Elect this benefit during Open Enrollment. If you do not enroll at this time, a late enrollment penalty will apply with a 60-day waiting period. • New Full-Time Employees: 60 days to enroll after date of hire. Option 1 Option 2 Benefits Schedule 60% 60% Max Weekly Benefit $1,000 $1,000 Waiting Period 14 days 29 days Max Benefit Period 76 days 61 days Est. Premiums (age 0-54) $18/mo $13/mo 9

Disease Management Livongo is a voluntary health coaching program that enables people with diabetes to share blood glucose readings and other health data with Certified Diabetes Educators. Program participants will receive a free Welcome Kit with: • Glucose meter, scale & blood pressure cuff • Unlimited testing supplies via mail order delivery Launching February 1, 2020 Employees will not apply for Livongo program during Open Enrollment. Additional information will be available soon. Disclaimer: This presentation is intended to serv e as a high-lev el benef its ov erv iew. It is not an exhaustiv e list of all requirements, limitations or exceptions related to insurance cov erages or tax-f av ored 10 accounts. Employ ees are strongly encouraged to v isit hr.ua.edu/benef its/openenrollment f or additional inf ormation and more comprehensiv e resources.

PPO First-Dollar Deductible + Medical Deductible Rx Deductible The first-dollar deductible will be a COMBINED $400 per person . A person can meet the deductible with medical or pharmacy claims, then the plan pays. $175, $175 $175 x 4, $175 x 4 $400 $400 x 4 Disclaimer: This presentation is intended to serv e as a high-lev el benef its ov erv iew. It is not an exhaustiv e list of all requirements, limitations or exceptions related to insurance cov erages or tax-f av ored 11 accounts. Employ ees are strongly encouraged to v isit hr.ua.edu/benef its/openenrollment f or additional inf ormation and more comprehensiv e resources.

PPO Out-of-Pocket Maximum Tier 2019 2020 $5,000 Employee $5,000* ($2,500 Med + $2,500 Rx) $14,300 Family without a Spouse $14,300 ($7,150 Med + $7,150 Rx) $14,300 $14,300 Family with a Spouse ($7,150 Med + $7,150 Rx) *Individual Employee out-of-pocket maximum is built-in to the Family maximums. No one person can incur over $5,000 in medical or pharmacy costs per calendar year. Once you or your family meets the out-of-pocket maximum, your healthcare is covered 100% for the rest of the year! 12

PPO Plan Premiums 2019 2020 Monthly Employee UA Employee UA Employee Only $108 $448 $113 $469 Family without a Spouse* $386 $798 $396 $819 Family with a Spouse* $447 $798 $467 $834 Biweekly Employee UA Employee UA Employee Only $49.85 $206.77 $52.15 $216.46 Family without a Spouse* $178.15 $368.31 $182.77 $378.00 Family with a Spouse* $206.31 $368.31 $215.54 $384.92 *Both Family tiers can include Employee +1, 2, 3, etc., dependents. 13

Flexible Spending Accounts Account Healthcare FSA Dependent Care FSA Annual Contribution Limit $2,700 $5,000 Minimum Contribution $125 $125 Pay for out-of-pocket healthcare expenses that are not covered Pay for childcare expenses for Eligible Expenses by medical, dental or vision tax-dependent children under insurance for you and your tax the age of 13. dependents. Funds Available Beginning of the year Funded per paycheck • Pay expenses via debit card or manual reimbursement. • Both accounts subject to use-it-or-lose-it rule. Incur expenses by December 31 of the current plan year and submit for reimbursement by March 31 of the following year or forfeit all remaining funds . 14

ACTIVE Open Enrollment begins November 1 – 15. Get a jump start and review your current benefits now! If you do not enroll or re-enroll in benefits, then you will have NO COVERAGE in 2020! 15

What is a High Deductible Health Plan (HDHP)? HDHP PPO Health Plan High Deductible Health Plan Preferred Provider Organization Premiums Lower Higher Deductibles Higher Lower Member Cost Share Coinsurance (20%) Copayments (after deductible is met) Health Savings Account (HSA) Healthcare FSA Tax-Favored Accounts Dependent Care FSA Dependent Care FSA Third Party Administrator Both plans are administered by Blue Cross & Blue Shield of Alabama. Network Access Both plans have the same network access and provider discounts. Covered Services Both plans have the same covered services. Preventive Services Both plans cover FREE preventive services at no cost share to the member. Disclaimer: This presentation is intended to serv e as a high-lev el benef its ov erv iew. It is not an exhaustiv e list of all requirements, limitations or exceptions related to insurance cov erages or tax-f av ored 17 accounts. Employ ees are strongly encouraged to v isit hr.ua.edu/benef its/openenrollment f or additional inf ormation and more comprehensiv e resources.

HDHP Out-of-Pocket Maximum Tier 2019 2020 $3,000 $3,500 Employee Family without a Spouse $6,000 $7,000* Family with a Spouse $6,000 $7,000* *The Family tier out-of-pocket maximum is an aggregate amount . Any one person in a family can incur up to $7,000 in medical or pharmacy costs per year. Once you or your family meets the out-of-pocket maximum, your healthcare is covered 100% for the rest of the year! 18