2014 Employee Benefit Meeting May 2014 Sarah Dahl Client Advisor - PowerPoint PPT Presentation

ST. OLAF COLLEGE 2014 Employee Benefit Meeting May 2014 Sarah Dahl Client Advisor 7225 Northland Drive North, Minneapolis, MN 55428

Disclaimer The benefits outlined throughout this presentation reflect a summary of coverage only. For specific plan details including coverage levels and benefit exclusions, please refer to the certificate of coverage. 1 MARSH & McLENNAN AGENCY LLC

Agenda • Dental Plan • Life/AD&D and Voluntary Life • Long Term Disability • Medical Plans – New plan option for 2014 • Health Savings Account (HSA) • Flexible Spending Account (FSA) 2 MARSH & McLENNAN AGENCY LLC

Dental 3 MARSH & McLENNAN AGENCY LLC

Dental Insurance • Dental plan remains administered by Delta Dental – no plan changes! • Combined increase of 4.94% Employee only: +2.46% Employee + 1: +4.82% Family: +6.00% – The disparity across enrollment tiers is based on usage – 1% of this is leftover from the addition of implant coverage from last year • This is your open enrollment opportunity – employees can come on or go off the plan effective 9/1/14. • Participating provider search – www.deltadentalmn.org, 651-406-5916, or 1-800-553-9536 4 MARSH & McLENNAN AGENCY LLC

Dental Premiums Expiring Monthly Monthly Contribution* Coverage Election Contribution* Effective 9/1/14 Employee only $17.02 $17.44 Employee + 1 $34.82 $36.50 Family $52.82 $56.00 *Contributions shown above are for .75 and above FTE. Contributions for 0.5 – 0.749 FTE employees are prorated. Dental premiums are deducted from your paycheck on a pre-tax basis. 5 MARSH & McLENNAN AGENCY LLC

LIFE, AD&D, VOLUNTARY LIFE & DISABILITY 6 MARSH & McLENNAN AGENCY LLC

Employer Paid Life/AD&D • Benefits remain with CIGNA • No cost to employees • 2x annual earnings to $500,000 • Remember to update your beneficiary information – You may update your beneficiary at any time. 7 MARSH & McLENNAN AGENCY LLC

Voluntary Life and AD&D Guarantee Issue – newly Benefit Options eligible employees only Employee 1 to 2 times annual < of 2 times annual compensation to a max of compensation to max $500,000; increments of $10,000 of $500,000 Spouse Up to $100,000 not to exceed $50,000 50% of the employee amount; units of $10,000 Child(ren) Birth to 6 months: $2,500 All amounts 6 months to 19 years: $10,000 (25 if full time student) 8 MARSH & McLENNAN AGENCY LLC

Long Term Disability CIGNA Benefit Elimination Period 180 days Benefit Amount 60% of Covered Monthly Earnings up to $7,500 Maximum Benefit To Social Security Normal Retirement Age Period • St. Olaf College pays the premium for this coverage on your behalf. – If you pay the tax on the premiums, any benefit you receive will be tax- free. – If you do not pay the tax on the premiums, any benefit you receive would be taxable. – You may change your election only at annual enrollment. 9 MARSH & McLENNAN AGENCY LLC

MEDICAL 10 MARSH & McLENNAN AGENCY LLC

2014 Medical Renewal Overview • Medical trend in the marketplace – BCBS: 6.5% – HealthPartners: 6.8% – Medica: 9.02% – PreferredOne: 8.43% • Medical plan is renewing with BCBS – St. Olaf premium increase is 3.62% - Reminder, 2013 premium increase was approximately 5% – No plan changes to current plan – Adding Health Savings Account (HSA) compatible high deductible plan as an option - Refer to handout for plan comparison 11 MARSH & McLENNAN AGENCY LLC

Employee Medical Premiums Monthly Contribution Expiring Effective 9/1/14* Monthly Contribution* Traditional Plan HDHP Plan Employee only $125.86 $130.42 $130.42 Employee + 1 $330.32 $342.28 $342.28 Family $524.06 $543.04 $543.04 *Contributions shown above are for .075 and above FTE. Contributions for 0.5 – 0.749 FTE employees are prorated. Medical premiums are deducted from your paycheck on a pre-tax basis. 12 MARSH & McLENNAN AGENCY LLC

Fitness Discount Reminder – Fitness Discount Program • Go to participating fitness facility 8x per month and receive a $20 credit applied toward membership dues!!! • To participate, you must complete an enrollment form and turn it in to your workout facility • Go to members.bluecrossmn.com to find a participating facility. 13 MARSH & McLENNAN AGENCY LLC

Online Care Anywhere • “See” a physician online, 24/7 – including holidays • www.onlinecareanywheremn.com • Use it for: – Sinusitis / Laryngitis / Pharyngitis – Fever / Flu – Ear infections / Eye infections – Skin conditions – For more information: - http://www.onlinecareanywheremn.com/conditionswetreat.php MARSH & McLENNAN AGENCY LLC

BLUE CROSS/BLUE SHIELD VALUE ADDS • Online health and wellness resouces on myBlueCross • Online health assessment • Online coaching • Stop-Smoking Support • Fitness Discounts (up to $40) • 24-Hour Nurse Advice line • Employee Assistance Program • Healthy Start Prenatal Support • Chronic Condition Management 15 MARSH & McLENNAN AGENCY LLC June 12, 2014

Online Care Anywhere Availability 16 MARSH & McLENNAN AGENCY LLC

Online Care Anywhere • Fee for online care is subject to the deductible and coinsurance – Fee is $45 per visit; any prescriptions are subject to prescription charges per your plan – You may reimburse yourself with either Flex or Health Savings Account money. • RECOMMEDED: Pre-register before you get sick! • http://vimeopro.com/bluecrossmn/onlinecareanywheremn- consumer-video MARSH & McLENNAN AGENCY LLC

HIGH DEDUCTIBLE PLANS (HDHP) & HEALTH SAVINGS ACCOUNTS (HSA) 18 MARSH & McLENNAN AGENCY LLC

What is a Health Savings Account (HSA)? • A health savings account (HSA) is an account that you can use to pay eligible expenses with pre-tax dollars. – Must be in conjunction with a qualified high-deductible health plan (HDHP) – You own the account – you control how you use the money in your HSA – it stays in the account until you spend it. – Tax-advantages – pay your qualified expenses with pre-tax money. • An HSA is not the same as your medical insurance. It is a separate account owned by the individual. • Our administrator for the Health Savings Account (HSA) will be SelectAccount. 19 MARSH & McLENNAN AGENCY LLC

Benefits of an HSA • Triple tax advantage means you save money on your health care expenses – You contribute pre-tax money, – Interest accrues tax-free – Funds are withdrawn tax-free if used for qualified expenses • Funds rollover each year, so you can use your HSA to save tax-free money for retirement – “Use it or lose it” does not apply to HSAs! • You may change your contribution amount throughout the year • You own the account (and keep the money), even if you leave St. Olaf, or are no longer covered by a qualified HDHP. 20 MARSH & McLENNAN AGENCY LLC

High-Deductible Health Plan • According to IRS regulations, HSAs can only be offered with a qualified high-deductible health plan (HDHP). • As determined by the IRS, the minimum deductible for an embedded plan is $2500. • On the qualified high-deductible plan, all medical and prescription charges are subject to the deductible. (Preventive visits are the one exception.) • You can find out more information on the true “cost” of your office visits, and prescriptions and more at mybluecrossmn.com – Don’t be afraid to “shop around,” especially for prescriptions! 21 MARSH & McLENNAN AGENCY LLC

How Does the HSA / HDHP Work? • You contribute money to the HSA (either a lump sum payment or via payroll deductions). • You can use HSA dollars to pay your health insurance deductible, along with other qualified expenses such as dental, orthodontia or vision services. – Just like with the Flex, dental and orthodontia expenses, and vision supplies like contacts or glasses do NOT count towards your medical plan deductible or out of pocket. • Once you meet your deductible, St. Olaf College pays additional eligible covered expenses in accordance with the plan. 22 MARSH & McLENNAN AGENCY LLC

Who is Eligible to contribute to an HSA? • Anyone who is: – Covered by a qualified HDHP – Not enrolled in Medicare – Not covered under other non-qualified health insurance* – Not covered by another “full” medical Flexible Spending Account (FSA) – Not another person’s dependent for tax purposes • An employer may also make a contribution on your behalf. * “Other health insurance” does not include: specific disease or illness insurance, accident, disability, dental care, vision care and long-term care insurance 23 MARSH & McLENNAN AGENCY LLC

HSA Contributions • For the 2014 plan year, St. Olaf’s annual employer HSA contribution will be: Employee only $500 Employee + 1 $1,000 Family $1,500 • 0.5 – 0.749 FTEs will receive a pro-rated amount. • If you are eligible, you will receive 50% of the employer contribution in September, and the remaining 50% distributed evenly with the first paycheck each month for the following 11 months. • REMEMBER: If you are ineligible to contribute to an HSA, it is your responsibility to notify St. Olaf that you are also not eligible to receive the employer contribution. 24 MARSH & McLENNAN AGENCY LLC