2014 Benefits Open Enrollment November 19 December 6, 2013 Take - PowerPoint PPT Presentation

2014 Benefits Open Enrollment November 19 – December 6, 2013 Take The Wheel Today and Benefit Don’t Lose Your 2014 Benefits

Required 2014 Open Enrollment  Open Enrollment Overview  Benefit Plan Changes and Highlights  Eligibility  Benefit Plan Information  Open Enrollment Instructions  Open Enrollment Next Steps  Open Enrollment, HR and Vendor Contact Information 1

What is Open Enrollment?  Open Enrollment Period: November 19 th – December 6 th .  The annual benefits enrollment period is your chance to enroll or change your enrollment in current healthcare and flexible spending.  You must actively make elections for medical and flexible spending account(s) to have coverage in 2014. Unlike prior years, your current medical elections will not roll over to the new plan year.  If you do not enroll during Open Enrollment, you may not make changes to your coverage until next year’s Open Enrollment period, unless you have a qualifying life event.  The benefits you elect will be effective January 1, 2014 and payroll deductions will begin on your first paycheck of 2014. 2

Required 2014 Open Enrollment Overview  Enrollment information packet will be mailed to your home address the week of November 4th. Update your address to ensure delivery!  Be sure to review the entire booklet as you select your coverage(s).  Open Enrollment begins November 19th and ends December 6th – you must enroll during these dates. Two ways to enroll  Enroll online at https://karbenefits.com. • Complete directions for online enrollment are available on the KAR Benefits website home page: 2014 OE Guide to Using the Benefits System.  Enroll by phone by calling the Univers Benefits Enrollment Center 800.868.0873 (toll-free) Monday thru Friday 9am to 8pm EST.  Note: You will need to enroll in the Medical Insurance & Flexible Spending Accounts for 2014. Current Medical and FSA elections will not be rolled over. 3

Key Communications – Why the Changes? • The KAR Board and Senior Leadership Team have undertaken great effort to approach plan design and costs with a focus on our employees. • KAR’s plans have exceeded budget by $4.5M this year. • Healthcare costs continue to escalate at more than double the inflation rate. • 2014 national trend increase is projected at double-digit levels. • KAR has historically held to 3-7% premium increases to employees but cannot continue to absorb escalating costs. • 2014 Affordable Care Act imposes significant costs. • KAR is proud to continue to provide a competitive benefits package in the industry. 4

Key Benefit Changes for 2014  Medical Plan Changes: • Rate Increase of 17% on all plans and tiers. • Increase deductibles and out of pocket maximums. • Spouse Eligibility. o If spouse is eligible for employer-sponsored medical coverage through another employer and their employer contributes at least 50% to the cost of the medical premium, your spouse is not eligible for coverage. Applies to spouse that is also employed by KAR Auction Services. o Does not apply to spouse who is eligible for Medicare. o If spouse is not eligible for employer-sponsored medical coverage or their employer pays less than 50% of total premiums, spouse is eligible for KAR coverage and employee must sign Spouse Eligibility Certification Form. 5

Key Benefit Changes for 2014  Medical Plan Changes: • Same Sex Marriage Coverage. • Emergency Room Surcharge. • Surcharge is waived if the plan member is admitted o Premium Plan and Standard Plan. - Increase to $200 up from $100. o Consumer Choice Plan. - Implement $200 emergency room surcharge.  Dental Rate Increase 3% on all plans and tiers.  No Plan changes for the Dental Plans.  No Rate or Plan changes for the Vision Plan. 6

Key Benefit Changes for 2014 2014 Medical Plan Design Premium Plan Standard Plan Consumer Choice Plan In-Network Out-Network In-Network Out-Network In-Network Out-Network Annual Deductible (ded) Single $500 $1,200 $750 $1,500 $1,500 $3,000 Family* $1,250 $3,000 $1,875 $3,750 $3,750 $7,500 Coinsurance (coins) 20% 40% 20% 40% 20% 50% Includes Deductible Includes Deductible Includes deductible Out of Pocket Maximum (OOP Max) Single $2,000 $4,000 $2,450 $4,900 $2,500 $8,000 Family* $5,000 $10,000 $6,125 $12,250 $6,250 $20,000 ded & coins ded & coins ded & coins ded & coins ded & coins ded & coins Inpatient Hospital Office Visits Primary Care Physician ded & coins ded & coins ded & coins ded & coins ded & coins ded & coins Specialist ded & coins ded & coins ded & coins ded & coins ded & coins ded & coins Emergency Room Surcharge $200 surcharge, also subject to Ded & Coins $200 surcharge, also subject to Ded & Coins $200 surcharge, also subject to Ded & Coins Deductible & Coinsurance Deductible & Coinsurance Deductible & Coinsurance Urgent Care Facility Wellness Benefits Children, regardless of age 100% No coverage 100% No coverage 100% No coverage Adults 100% No coverage 100% No coverage 100% No coverage Infertility Diagnosis only covered Diagnosis only covered Diagnosis only covered Office Visits ded & coins ded & coins ded & coins ded & coins ded & coins ded & coins Surgery ded & coins ded & coins ded & coins ded & coins ded & coins ded & coins Rx- Retail $3,000/$6,000 OOP max $4,500/$9,000 OOP max Formulary Generic 15% No coverage 20% No coverage ded & coins No coverage Formulary Brand 30% No coverage 40% No coverage ded & coins No coverage Non Formulary Brand 40% No coverage 50% No coverage ded & coins No coverage Rx- Mail Order (90 day supply) $3,000/$6,000 OOP max (combined w/retail) $4,500/$9,000 OOP max (combined w/retail) Formulary Generic 10% No coverage 15% No coverage ded & coins No coverage Formulary Brand 25% No coverage 35% No coverage ded & coins No coverage Non Formulary Brand 35% No coverage 45% No coverage ded & coins No coverage Employee Bi-Weekly Cost Employee Bi-Weekly Cost Employee Bi-Weekly Cost Coverage Tier Employee $62.99 $45.00 $20.54 $117.74 $84.12 $38.38 Employee & Child(ren) Employee & Spouse $130.93 $93.54 $42.69 7 $183.93 $131.42 $59.97 Family * Dependents are covered until the age of 26

2014 Medical Rates Employee and Company Paid Premium Plan : Employees pay 27% of the premiums KAR pays 73% of the premiums Standard Plan : Employees pay 22% of the premiums KAR pays 78% of the premiums Consumer Choice Plan : Employees pay 11% of the premiums KAR pays 89% of the premiums 8

Medical Plan Information for MA Residents Only  Participants residing in the Commonwealth of Massachusetts have a lower prescription out-of-pocket maximum on the Standard Plan (only) in response to regulations under the Massachusetts Healthcare Reform Act.  Standard Plan Rx OOP Max  Single $3,900  Family $6,575 9

Medical Plan Information  What is a Consumer Driven Health Plan (CDHC)? • A health plan with a high deductible to offer protection for catastrophic medical expenses, with lower monthly premiums. • CDHC plans provide the insured with the opportunity to compare treatment costs.  How is this different than a traditional PPO plan? • A PPO plan usually has a lower deductible and a higher monthly premium.  Something to consider: • Are you more comfortable paying more money from each paycheck, to have lower bills when visiting the doctor? • Or are you more comfortable paying less money from each paycheck, then paying more money at the doctor’s office? 10

Key Benefit Changes for 2014  Medical plan deductible increases are as follows: • Premium Plan o $500 (s)/$1,250 (f) in-network up from $400 (s)/$800 (f) o $1,200 (s)/$3,000 (f) out-network up from $1,000 (s)/$2,000 (f) • Standard Plan o $750 (s)/$1,875 (f) in-network up from $700 (s)/$1,400 (f) o $1,500 (s)/$3,750 (f) out-network up from $1,400 (s)/$2,800 (f) • Consumer Choice Plan o $1,500 (s)/$3,750 (f) in-network up from $1,500 (s)/$3,000 (f) o $3,000 (s)/$7,500 (f) out-network up from $3,000 (s)/$6,000 (f) 11

Key Benefit Changes for 2014  Medical plan out of pocket increases are as follows: * • Premium Plan o $1,500 (s)/$3,750 (f) in-network up from $1,400 (s)/$2,800 (f) o $2,800 (s)/$7,000 (f) out-network up from $2,600 (s)/$5,200 (f) • Standard Plan o $1,700 (s)/$4,250 (f) in-network up from $1,600 (s)/$3,200 (f) o $3,400 (s)/$8,500 (f) out-network up from $3,200 (s)/$6,400(f) • Consumer Choice Plan o $1,000 (s)/$2,500 (f) in-network up from $1,000 (s)/$2,000 (f) o $5,000 (s)/$12,500 (f) out-network up from $5,000 (s)/$10,000 (f) * Out of pocket maximums exclude deductibles 12