Annual Enrollment 2018 November 3 – November 17 CONFIDENTIAL INTERNAL USE ONLY
What you need to know about Annual Enrollment for 2018 November 3-17 • A number of plan changes for 2018 • You MUST enroll to have benefits for 2018 • Enrollment will all be done on-line • MyVersoBenefits.com – Enroll button – CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
What’s New/Changing Medical Telemedicine benefit allows patient to visit with a doctor remotely – A new HSA plan (HSA Core) with a lower premium and an higher deductible – The HRA plan will no longer be offered as a choice for Verso – Healthcare FSA will not be available – Company’s contribution to the Health Savings Account (HSA) will remain at $750/$1500 but a portion will require action to earn – Surcharges Tobacco user – Working spouse – Life and Disability All employees will move to a common STD plan – Rates for supplemental life insurance coverage will reflect a tobacco user status. – Voluntary Benefits All deductions for Aflac benefits will be taxable in 2018. – 2 CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
Terms to know High Deductible Health Plan (HDHP) • HDHPs cover preventive care before the deductible – the ACA requires this of all plans – but under an – HDHP, no other benefits are provided until the insured has met the deductible. That means HDHPs cannot have copays for office visits or prescriptions prior to the deductible being met Health Savings Account (HSA) • A health savings account (HSA) is a tax-deductible savings account that’s used in conjunction with an – HSA-qualified high-deductible health plan (HDHP). Deductible • The deductible is the amount an individual must pay for health care expenses before insurance covers – the costs. Co insurance • Coinsurance refers to money that an individual is required to pay for services, after a deductible has – been paid. In the Verso plan coinsurance is specified as a percentage. OOP Maximum • A predetermined amount of money that an individual must pay before their health care coverage will – pay 100 percent for an individual’s eligible health care expenses. 3 CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
2018 Plan Designs (In network) Parameter HSA Choice HSA Core Deductible $2,200/$4,400 $3,500/$7,000 Out of Pocket $4,400/$8,800 $6,650/$13,300 Co insurance 80% 80% Reward (HSA) $750/$1,500 at Target $750/$1,500 at Target Office visit 80% after deductible 80% after deductible Specialty 80% after deductible 80% after deductible Outpatient 80% after deductible 80% after deductible Diagnostic Testing 80% after deductible 80% after deductible Emergency Room 80% after deductible 80% after deductible Rx Generic 80% after deductible 80% after deductible Preferred Brand 80% after deductible 80% after deductible Non-Preferred Brand 80% after deductible 80% after deductible Specialty 80% after deductible 80% after deductible 4 CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
2018 Employee Medical Premiums Monthly HSA Choice HSA Core 2017 2018 % change 2017 2018 % change EE $120.51 N/A $130.99 8.6% $82.26 -31.7% EE + Spouse $247.05 N/A $268.53 8.6% $168.64 -31.7% EE + Child $216.92 N/A $235.78 8.6% $148.07 -31.7% Family $361.53 N/A $392.97 8.6% $246.78 -31.7% 5 CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
Surcharges Spousal • For employees who have a working spouse who has coverage available they will pay a surcharge – if they cover their spouse on the Verso plan $100/month – Tobacco • For employees who use tobacco products* there will be an incremental charge to have Verso – medical coverage Can avoid the surcharge by completing a tobacco cessation program – $100/month – * Includes the use of e cigarettes 6 CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
Health Savings Account (HSA) A health savings account (HSA) is a tax-deductible savings account that’s used in conjunction with an HSA-qualified high-deductible health plan (HDHP). HSA offers “triple tax savings” • Contributions to the account are tax deferred • Distributions are tax free when used for qualified medical expenses • Any earnings and/or interest are tax free • No “use it or lose it” rule • Once the money is in an HSA, it doe not expire • Portable • The HSA is yours and can go with you leave the company • Limits • IRS limits of $3450 (single) or $6900 (family) • An additional $1000 if age 55 on or before 12/31/18 • Are there any restrictions? • Cannot have at the same time as an FSA • Cannot contribute if enrolled in Medicare • 7 CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
Tax Savings Example No HSA HSA Contribution Contribution Annual Pay $60,000 Annual Pay $60,000 HSA Contribution $0 HSA Contribution $6,650 Taxable Income $60,000 Taxable Income $53,350 Taxes (30% rate) $18,000 Taxes (30% rate) $16,005 Net Pay $42,000 Net Pay $37,345 Health Care $6,650 Expenses Final Take Home Pay $35,350 Final Take Home Pay $37,345 All figures shown are estimates for illustrative purposes. The example is based on a $60,000 annual salary and a maximum contribution to an HSA account. Your salary, tax rate, health care expenses and tax savings may be different. 8 CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
How does the HSA work with my medical plan? You incur a claim at the doctor • Doctor submits the claim to insurance (BCBST) • Insurance issues an Explanation of Benefits (EOB) which shows amounts that are covered, • discounts, amounts applied to the deductible and the member responsibility. You choose how to pay the doctor • Out of pocket – From you HSA – Debit card • Check • Direct debit • 9 CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
What expenses can my HSA cover? See IRS Publication 502 for a complete list of eligible expenses. Here are some examples: • Deductibles – Co-insurance – Eyeglasses – Dental expenses – Hearing Aids – Chiropractic care – Durable medical equipment – 10 CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
Telemedicine What is it? You can consult with a physician via video consultation, secure messaging or telephone. Common conditions treated by Telemedicine doctors: You pay the actual cost of the visit – currently $38 Allergies • Cold and flu • Applies to your deductible Fever • Sinus infections Can use your HSA to cover the cost • Respiratory issues • Skin conditions (rashes or insect bites) • Sore throat • Urinary tract infections • Common Pediatric Conditions Include:*** Cold and flu • Constipation • Ear aches • Diarrhea • Nausea and vomiting • Pinkeye • ***Children under the age of 36 months with a fever will be referred to their primary care pediatrician. 11 CONFIDENTIAL INTERNAL USE ONLY
Verso’s Contribution to your HSA For 2018 there will be 2 ways to earn HSA contributions from Verso • Match • $1/$1 up to $375 (single) or $750 (family) – Action for reward • $375 (single) or $750 (family) • You can earn rewards for each of the following: • – Completing a Health Risk Assessment – Staying active with Virgin Pulse – Getting your Annual Physical CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
Dental Base Plan Buy up Plan Diagnostic 100% 100% Basic 80% 80% Major 50% 50% Orthodontia Not Covered 50% Plan Deductibles $50/$100 $50/$100 Calendar Year Max $1500 $1500 Orthodontia Lifetime n/a $1500 No plan or rate changes for 2018 13 CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
2018 Employee Premiums - Dental Base Buy Up 2017 2018 2017 2018 EE $12.54 $12.54 $13.14 $13.14 EE + Spouse $25.09 $25.09 $26.27 $26.27 EE + Child $30.11 $30.11 $37.92 $37.92 Family $46.42 $46.42 $58.18 $58.18 14 CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
Vision Participating Provider Non participating provider Exam $15 copay $50 allowance Lenses $15 copay Single $50 allowance Bifocal $75 allowance Trifocal $100 allowance Frames $50 wholesale allowance $70 retail allowance Contacts $130 allowance $105 allowance Frequency Exam 1 every 12 months 1 every 12 months Lenses/contacts 1 every 12 months 1 every 12 months Frame 1 every 12 months 1 every 12 months No plan or rate changes for 2018 15 CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
2018 Employee Premiums - Vision 2017 2018 EE $9.66 $9.66 EE + Spouse $15.19 $15.19 EE + Child $15.51 $15.51 Family $25.00 $25.00 16 CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
Life and AD&D Insurance Tobacco User Rates added for 2018 Basic • Coverage for you (1X base salary) – Supplemental • Coverage for you (1 – 7X base salary) – Coverage for your spouse – Coverage for your child(ren) to age 26 – Special Rules • Reductions – Amount of coverage decreases by 11%/year after you reach age 65 • Spouse coverage is not available after age 70 • 17 CONFIDENTIAL INTERNAL USE ONLY CONFIDENTIAL INTERNAL USE ONLY
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