2015 Employee Benefit Meeting May 2015 Sarah Dahl Client Advisor - PowerPoint PPT Presentation

ST. OLAF COLLEGE 2015 Employee Benefit Meeting May 2015 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 • Change to Enrollment Process • Dental Plan • Life/AD&D and Voluntary Life • Long Term Disability • Medical Plans • Health Savings Account (HSA) • Flexible Spending Account (FSA) 2015-16 Open Enrollment is July 20 - August 7 2 MARSH & McLENNAN AGENCY LLC

Change to Enrollment Process •What’s not changing… – Online enrollment – You have access anywhere in the world that has internet access – If you will be travelling without internet access from July 20-Aug 7, please see St. Olaf HR ahead of time to complete a paper form •What IS changing… – The 2015 plan year will be a PASSIVE enrollment • This means: – If you do not have an FSA (medical reimbursement or day care reimbursement) AND you are not making any changes, you do not need to take any action. 3 MARSH & McLENNAN AGENCY LLC

Change to Enrollment Process • IMPORTANT – FSA ELECTIONS – If you have either the medical or dependent care FSA and wish to keep that for 2015, you MUST enroll as this is an IRS requirement. – Failure to make an FSA enrollment means you will NOT have an FSA for 2015. • ALSO IMPORTANT – RETIREMENT ELECTIONS • Passive Enrollment: If you do not complete an EOB… – Matched Pre-Tax will default at current election up to 3% – Unmatched will default to $0 4 MARSH & McLENNAN AGENCY LLC

Dental 5 MARSH & McLENNAN AGENCY LLC

Dental Insurance • Dental plan remains administered by Delta Dental • No plan or rate changes! – Last year was an increase of 4.94% • This is your open enrollment opportunity – employees can come on or go off the plan effective 9/1/15. • Participating provider search – www.deltadentalmn.org, 651-406-5916, or 1-800-553-9536 Monthly Contribution* Coverage Election Effective 9/1/15 Employee only $17.44 *Contributions shown above are for 0.75 and above FTE. Contributions for 0.5 – 0.749 FTE employees are prorated. Employee + 1 $36.50 Dental premiums are deducted from your Family $56.00 paycheck on a pre-tax basis. 6 MARSH & McLENNAN AGENCY LLC

LIFE, AD&D, VOLUNTARY LIFE & DISABILITY 7 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. 8 MARSH & McLENNAN AGENCY LLC

Voluntary Life, Voluntary AD&D Guarantee Issue – newly Voluntary Life 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) • No changes to the Voluntary AD&D plan 9 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. 10 MARSH & McLENNAN AGENCY LLC

MEDICAL 11 MARSH & McLENNAN AGENCY LLC

2015 Medical Renewal Overview • Medical trend in the marketplace – BCBS: 7.3% – HealthPartners: 6.98% – Medica: 6.5% – PreferredOne: 8.43% • Medical plan is renewing with BCBS – Initial renewal called for a double digit increase – Multiple plan changes were reviewed – Final overall increase is 7.49% - Reminder, 2013-2014 / 2014-2015 increases were 3.6% & 5.0% 12 MARSH & McLENNAN AGENCY LLC

Employee Medical Premiums Expiring Monthly 2015 Monthly Contribution* Contribution * Traditional or Traditional or HDHP Plan HDHP Plan Employee only $130.42 $144.00 Employee + 1 $342.28 $362.00 Family $543.04 $570.00 *Contributions shown above are for 0.75 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. 13 MARSH & McLENNAN AGENCY LLC

2015 Medical Renewal Plan Changes • On the HSA-compatible HDHP plan – We had about 10% of medical plan participants choose the HDHP last year! – Due to IRS regulations, the Tier 1 deductible and out of pocket will change as shown below. - NO OTHER PLAN CHANGES – St. Olaf employer contribution to your HSA will be the same. Expiring Eff 9/1/2015 HDHP plan T1 single deductible & OOP $2,500 $2,600 T1 family deductible & OOP $5,000 $5,200 14 MARSH & McLENNAN AGENCY LLC

2015 Medical Renewal Plan Changes • On the $600 deductible plan – The Benefits Committee looked at several options to mitigate the initial double-digit increase. – We landed on the change that brought us the greatest savings at lowest member impact – Beginning September 1, 2015, the formulary on the $600 ded plan will be the GenRx formulary. - NO OTHER PLAN CHANGES – A change in formulary means: - There are some medications that for the 2014-2015 plan year are at the $30 copay level. - Beginning in 9/1/2015, those same medications may be at the $80 level. - Refer to the handout to check if you or your family is impacted. 15 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. 16 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

Online Care Anywhere Availability 18 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) 20 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. 21 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. 22 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 $2600. • 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! 23 MARSH & McLENNAN AGENCY LLC