2011 Annual Benefits Open Enrollment

2011 Annual Benefits 2011 Annual Benefits Open EnrollmentOpen Enrollment

AgendaAgenda 2011 Insurance Overview Presentation2011 Insurance Overview Presentation

– Medical insurance changes Medical insurance changes – Cafeteria Plan Funding/Dependent Medical Premium SupplementsCafeteria Plan Funding/Dependent Medical Premium Supplements– Health Savings Accounts – new banking institutionHealth Savings Accounts – new banking institution– Flexible Spending Accounts – Over-the-Counter claim changesFlexible Spending Accounts – Over-the-Counter claim changes

UnitedHealthcare PresentationUnitedHealthcare Presentation– Plan design featuresPlan design features– Provider networkProvider network– Treatment Cost Estimator and Rx Cost Estimator featuresTreatment Cost Estimator and Rx Cost Estimator features– Myuhc.comMyuhc.com

2011 University Paid Leaves Presentation2011 University Paid Leaves Presentation– Paid Sick Leave and Short Term DisabilityPaid Sick Leave and Short Term Disability– Paid Time Off (PTO) – Applies to staff onlyPaid Time Off (PTO) – Applies to staff only

2011 Insurance Highlights 2011 Insurance Highlights Medical InsuranceMedical Insurance

– Change to UnitedHealthcareChange to UnitedHealthcare– Premium decreasePremium decrease– Changes in Cafeteria Plan FundingChanges in Cafeteria Plan Funding– University-paid dependent premium supplements for University-paid dependent premium supplements for

Base Plan (formerly plan B)Base Plan (formerly plan B)– Health Savings Account (HSA) and Medical Health Savings Account (HSA) and Medical

Reimbursement Account (MRA) optionsReimbursement Account (MRA) options– Rx copaysRx copays– Dependent children age limit – through age Dependent children age limit – through age

26 (per Patient Protection and Affordable 26 (per Patient Protection and Affordable Care Act)Care Act)

2011 Insurance Highlights2011 Insurance Highlights

Dental and Vision InsuranceDental and Vision Insurance– Delta Dental of MO and VSPDelta Dental of MO and VSP– Approximate 6% increase in premiumApproximate 6% increase in premium– Enhanced Vision Plan B allowanceEnhanced Vision Plan B allowance

Flexible Spending Accounts (MRA and Flexible Spending Accounts (MRA and Dependent Care Assistance)Dependent Care Assistance)– PowerGroup AdministratorsPowerGroup Administrators– Changes to Over-the Counter Claims Changes to Over-the Counter Claims

Reimbursement Guidelines (per Patient Reimbursement Guidelines (per Patient Protection and Affordable Care Act)Protection and Affordable Care Act)

2011 Medical Insurance2011 Medical Insurance

UnitedHealthcare UnitedHealthcare – 13% decrease in employee only premium13% decrease in employee only premium– 43% decrease in premium for Pre-Medicare 43% decrease in premium for Pre-Medicare

retiree premiums retiree premiums – Same deductible/cost share levelsSame deductible/cost share levels– Rx copaysRx copays– Health Savings Account (HSA) banking optionHealth Savings Account (HSA) banking option– Plan coverages and provider network to be Plan coverages and provider network to be

discussed during upcoming UnitedHealthcare discussed during upcoming UnitedHealthcare presentationpresentation

2011 Medical Insurance2011 Medical Insurance Base Plan (formerly Plan B)Base Plan (formerly Plan B)

– Employee premium 100% paid by UniversityEmployee premium 100% paid by University– $750 in cafeteria plan funding$750 in cafeteria plan funding– After $1,500 deductible…$10/$30/$50 Rx copaysAfter $1,500 deductible…$10/$30/$50 Rx copays– University-paid supplement for dependent premiumsUniversity-paid supplement for dependent premiums

Spouse = $75/month supplementSpouse = $75/month supplement Child(ren) = $100/month supplementChild(ren) = $100/month supplement Family = $200/month supplementFamily = $200/month supplement

– Health Savings Account (HSA) option availableHealth Savings Account (HSA) option available Family members required to meet family deductibleFamily members required to meet family deductible

– Medical Reimbursement Account (MRA) option Medical Reimbursement Account (MRA) option availableavailable Family members can meet individual deductible Family members can meet individual deductible

2011 Medical Insurance2011 Medical Insurance Accelerated Plan (formerly Plan A)Accelerated Plan (formerly Plan A)

– Employee contribution to employee only Employee contribution to employee only premium based on 2009 calendar year reported premium based on 2009 calendar year reported Form W-2 Medicare wages (box 5) Form W-2 Medicare wages (box 5)

– $250 cafeteria plan funding$250 cafeteria plan funding– $10/$30/$50 Rx copays, not subject to deductible $10/$30/$50 Rx copays, not subject to deductible

or cost shareor cost share– MRA will be availableMRA will be available

<$27,000 $27,000 -$44,999

$45,000 -$69,999

$70,000 +

$22/month $45/month $67/month $90/month

2011 Medical Insurance 2011 Medical Insurance EmployeeEmployee Monthly PremiumsMonthly Premiums

UnitedHealthcare Base Plan

(Formerly Plan B)

UnitedHealthcare Accelerated Plan

(Formerly Plan A)

Monthly Premium Monthly Premium

Employee $369.22 * Employee $459.09 **

Spouse $406.13 Spouse $505.00

Child(ren) $332.29 Child(ren) $413.18

Family $701.50 Family $872.27

* 100% Paid by University ** $22-$90/month employee contribution will apply

2011 Medical Insurance2011 Medical InsuranceDependent Premiums with AdjustmentsDependent Premiums with Adjustments

Base Plan: Base Plan: Employee Only Employee Only Premium 100% Paid by UniversityPremium 100% Paid by University

Spouse Coverag

e

Child(ren)

Coverage

Family Coverag

e

Quoted Dependent Premium

$406.13 $332.29 $701.50

University Supplement ($75.00) ($100.00) ($200.00)

Total Dependent Premium $331.13 $232.29 $501.50

Less Cafeteria Plan Funding

($62.50) ($62.50) ($62.50)

Adjusted Dependent Premium

$268.63 $169.79 $439.00

2011 Medical Insurance2011 Medical InsuranceEmployee and Dependent Monthly Premiums with Employee and Dependent Monthly Premiums with

AdjustmentsAdjustments Accelerated Plan: Accelerated Plan: Employee Employee

Contribution to Employee Only Premium Contribution to Employee Only Premium ($22-$90/month)($22-$90/month)

Spouse Coverag

e

Child(ren)

Coverage

Family Coverag

e

Quoted Dependent Premium

$505.00 $413.18 $872.27

Plus Employee Contribution

$22-$90 $22-$90 $22-$90

Total Premium $527.00-$595.00

$435.18-$503.18

$894.27-$962.27

Less Cafeteria Plan Funding

($20.83) ($20.83) ($20.83)

Adjusted Premium $506.17-

$574.17

$414.35-$482.35

$873.44-

$941.44

2011 Medical Insurance 2011 Medical Insurance Retiree Monthly PremiumsRetiree Monthly Premiums

Base Plan

(Formerly Plan B)

Current Premium

Base Plan

(Formerly Plan B)New

Premium

Accelerated Plan

(Formerly Plan A)

Current Premium

Accelerated Plan

(Formerly Plan A)New

Premium

Pre-65 Retiree

$683.42 $369.22 **

$800.93 $459.09

Spouse $683.46 $459.09 * $800.93 $505.00

Children

$512.63 $332.29 * $600.69 $413.18

Family $1,196.07 $701.50 * $1,401.64 $872.27

Post-65 Retiree

n/a n/a **

$404.90 $387.29

Spouse n/a n/a * $404.88 $426.02

Children

n/a n/a * $303.67 $348.56

Family n/a n/a * $708.57 $735.85

Note: Pre-65 Retiree Subsidy ended October 22, 2010, for new retirees.

2011 Medical Insurance2011 Medical InsuranceCafeteria Plan FundingCafeteria Plan Funding

Base Plan - $750Base Plan - $750– Can apply funding to: dependent medical Can apply funding to: dependent medical

premiums, health savings account (HSA), medical premiums, health savings account (HSA), medical reimbursement account (MRA), vision and dental reimbursement account (MRA), vision and dental premiums, and/or dependent care assistancepremiums, and/or dependent care assistance

Accelerated Plan - $250Accelerated Plan - $250– Can apply funding to: employee’s portion of Can apply funding to: employee’s portion of

medical premium, dependent medical premiums, medical premium, dependent medical premiums, vision and dental premiums, medical vision and dental premiums, medical reimbursement (MRA), and/or dependent care reimbursement (MRA), and/or dependent care assistanceassistance

Prorated funding for part-time employeesProrated funding for part-time employees

Health Savings Account Health Savings Account (HSA)(HSA)

Available with Base PlanAvailable with Base Plan New Banking Institution: OptumHealth New Banking Institution: OptumHealth

Bank (www.optumhealthbank.com)Bank (www.optumhealthbank.com) Account features:Account features:

– Balances roll over year after yearBalances roll over year after year– Interest-bearingInterest-bearing– PortablePortable

Use to pay for qualified medical expensesUse to pay for qualified medical expenses


ContributionsContributions– Both employer and employee contributions are Both employer and employee contributions are

permissiblepermissible– Employer contribution via Cafeteria Plan Employer contribution via Cafeteria Plan

fundingfunding ½ of annual amount contributed in January½ of annual amount contributed in January Remaining ½ contributed February - DecemberRemaining ½ contributed February - December

– 2011 maximum contribution levels:2011 maximum contribution levels: Single Coverage = $3,050Single Coverage = $3,050 Family Coverage = $6,150Family Coverage = $6,150

– 2011 Age 55+ Catch Up: Additional $1,0002011 Age 55+ Catch Up: Additional $1,000


DistributionsDistributions– Tax-free if used to pay for qualified Tax-free if used to pay for qualified

medical expensesmedical expenses– Monies must be available in account at Monies must be available in account at

time of distributiontime of distribution– Use for qualified expenses incurred on or Use for qualified expenses incurred on or

after account is establishedafter account is established– Can apply qualified medical expenses of Can apply qualified medical expenses of

spouse and children, even if not spouse and children, even if not covered by your medical insurancecovered by your medical insurance


DistributionsDistributions– Qualified Medical Expenses:Qualified Medical Expenses:

DeductiblesDeductibles Cost SharesCost Shares Out of pocket costs on medical claimsOut of pocket costs on medical claims Over-the-counter medical itemsOver-the-counter medical items Medicare insurance premiumsMedicare insurance premiums COBRA premiumsCOBRA premiums Long Term Care insurance premiumsLong Term Care insurance premiums

Patient Protection and Affordable Care Act legislation – Patient Protection and Affordable Care Act legislation – Requires a doctor’s prescription for over-the-counter Requires a doctor’s prescription for over-the-counter medical items. Keep copies of both medical items. Keep copies of both prescription and receipt for your records.prescription and receipt for your records.

Health Savings Account Health Savings Account (HSA)(HSA) Serviced through OptumHealth BankServiced through OptumHealth Bank

If electing HSA for first time:If electing HSA for first time:– University will initiate process to open/activate accountsUniversity will initiate process to open/activate accounts– After activation, Welcome Kits will be mailed to membersAfter activation, Welcome Kits will be mailed to members

For current HSA holders:For current HSA holders:– ACS/Mellon accounts will begin to incur monthly fees after 1/1/2011 – to avoid ACS/Mellon accounts will begin to incur monthly fees after 1/1/2011 – to avoid

this:this: Consider rolling over funds to OptumHealth BankConsider rolling over funds to OptumHealth Bank Print and complete forms from HR website:Print and complete forms from HR website:

– Mellon Bank form: Mellon Bank form: http://www.semo.edu/president/images/HR_HSAFormTrusteeToTrustee.pdf

– OptumHealth Bank form:http://www.semo.edu/president/images/HR_HSA-RolloverTransferForm.pdf

Mutual fund investment optionsMutual fund investment options All set up and monthly fees paid by University while having Base Plan All set up and monthly fees paid by University while having Base Plan

coveragecoverage OptumHealth Bank: 1-866-234-8913OptumHealth Bank: 1-866-234-8913

2011 Flexible Spending Accounts 2011 Flexible Spending Accounts (MRA and Dependent Care Assistance)(MRA and Dependent Care Assistance)

PowerGroup AdministratorsPowerGroup Administrators MRA – MRA –

– Available for both Base Plan and Accelerated PlanAvailable for both Base Plan and Accelerated Plan– Monies can be claimed immediatelyMonies can be claimed immediately– ““Use or Lose” feature, no roll overUse or Lose” feature, no roll over

Dependent Care Assistance – Dependent Care Assistance – – Available for both Base Plan and Accelerated PlanAvailable for both Base Plan and Accelerated Plan– Monies must be available in the account in order to Monies must be available in the account in order to

claim reimbursement claim reimbursement– ““Use or Lose” feature, no roll overUse or Lose” feature, no roll over

Annual Contribution Maximums: $5,000Annual Contribution Maximums: $5,000


Debit card feature Debit card feature – File claims using UHC insurance card before use!File claims using UHC insurance card before use!

Direct Deposit availableDirect Deposit available– Complete PowerGroup Administrators Direct Complete PowerGroup Administrators Direct

Deposit Authorization form on HR websiteDeposit Authorization form on HR website Substantiation of claims may be required per IRS Substantiation of claims may be required per IRS

guidelinesguidelines Patient Protection and Affordable Care Act Patient Protection and Affordable Care Act

legislation – will require a doctor’s prescription to legislation – will require a doctor’s prescription to accompany a reimbursement claim for some over-accompany a reimbursement claim for some over-the-counter medical itemsthe-counter medical items


Per PowerGroup, some categories that will fall Per PowerGroup, some categories that will fall under the Rx requirement:under the Rx requirement:– Acid controllers, allergy/sinus medication, antibiotic Acid controllers, allergy/sinus medication, antibiotic

products, anti-diarrhea, anti-gas, anti-itch and insect products, anti-diarrhea, anti-gas, anti-itch and insect bite medication, anti-parasitic treatments, baby rash bite medication, anti-parasitic treatments, baby rash creams, cold sore remedies, cough/cold/flu creams, cold sore remedies, cough/cold/flu medications, digestive aids, feminine anti-fungal/itch medications, digestive aids, feminine anti-fungal/itch products, hemorrhoid preps, laxatives, motion products, hemorrhoid preps, laxatives, motion sickness, pain relief, respiratory treatments, sleep sickness, pain relief, respiratory treatments, sleep aids and sedatives, stomach remedies, aids and sedatives, stomach remedies, vitamins/supplementsvitamins/supplements

– Submit claim form with Rx for above related Submit claim form with Rx for above related itemsitems

2011 Dental and Vision 2011 Dental and Vision InsuranceInsurance

Dental InsuranceDental Insurance– Continue with Delta Dental of MissouriContinue with Delta Dental of Missouri– Same coverage levelsSame coverage levels– Approximate 6.6% premium increaseApproximate 6.6% premium increase

Vision InsuranceVision Insurance– Continue with Vision Service Plan (VSP)Continue with Vision Service Plan (VSP)– Plan B Enhancement: $130 Allowance for Plan B Enhancement: $130 Allowance for

eyeweareyewear– Approximate 6% premium increaseApproximate 6% premium increase

2011 Dental and Vision 2011 Dental and Vision InsuranceInsurance

Monthly PremiumsMonthly PremiumsDental Insurance – Delta Dental of Missouri Dental Insurance – Delta Dental of Missouri

Plan A-Low OptionPlan A-Low Option Plan B-High OptionPlan B-High OptionCurrentCurrent RenewalRenewal CurrentCurrent RenewalRenewal

EmployeeEmployee $12.30 $12.30 $13.12 $13.12 EmployeeEmployee $28.42 $28.42 $30.32 $30.32SpouseSpouse $14.08 $14.08 $15.02 $15.02 SpouseSpouse $27.70 $27.70 $29.54 $29.54ChildrenChildren $28.66 $28.66 $30.57 $30.57 ChildrenChildren $42.72 $42.72 $45.57 $45.57FamilyFamily $41.92 $41.92 $44.72 $44.72 FamilyFamily $74.08 $74.08 $79.02 $79.02

Vision Insurance – Vision Service Plan (VSP)Vision Insurance – Vision Service Plan (VSP)

Plan A-Exam PlusPlan A-Exam Plus Plan B-Signature PlanPlan B-Signature PlanCurrentCurrent RenewalRenewal CurrentCurrent RenewalRenewal

EmployeeEmployee $2.88 $2.88 $3.05 $3.05 EmployeeEmployee $10.80 $10.80 $11.44 $11.44SpouseSpouse $1.18 $1.18 $1.25 $1.25 SpouseSpouse $ 6.52 $ 6.52 $ 6.91 $ 6.91ChildrenChildren $1.24 $1.24 $1.32 $1.32 ChildrenChildren $ 6.88 $ 6.88 $ 7.29 $ 7.29FamilyFamily $3.22 $3.22 $3.41 $3.41 FamilyFamily $17.72 $17.72 $18.78 $18.78

Note: For total premium, add employee and dependent amounts.Note: For total premium, add employee and dependent amounts.

2011 Life Insurance2011 Life Insurance

Limited Open Enrollment period being Limited Open Enrollment period being offered by Anthem Life:offered by Anthem Life:– May elect one additional level of supplemental May elect one additional level of supplemental

coverage up to Guarantee Issue ($100,000 in coverage up to Guarantee Issue ($100,000 in coverage)coverage)

– Evidence of Insurability required for requested Evidence of Insurability required for requested levels of coverage exceeding Guarantee Issuelevels of coverage exceeding Guarantee Issue

– Complete Application Form and send to Cynthia Complete Application Form and send to Cynthia Paul in Human Resources, MS 3150, by November Paul in Human Resources, MS 3150, by November 30:30:http://www.semo.edu/hr/benfits/group_life_insurance.htm

2011 Open Enrollment2011 Open EnrollmentProcessing your enrollment…Processing your enrollment…

November 15 – November 30, 2010November 15 – November 30, 2010 Full-time (100% assignment) employees Full-time (100% assignment) employees

will once again use Employee Self Service will once again use Employee Self Service to process Open Enrollment electionsto process Open Enrollment elections

Part-time (< 100% assignment) and dually Part-time (< 100% assignment) and dually employed spouse employeesemployed spouse employees– Part-time employee premium contribution Part-time employee premium contribution

based on percentage of assignmentbased on percentage of assignment– Will receive enrollment forms via email for Will receive enrollment forms via email for

completion and return to HR by November 30completion and return to HR by November 30 New medical insurance cards for 2011New medical insurance cards for 2011

UnitedHealthcare UnitedHealthcare PresentationPresentation

Employee Paid Sick Leave Employee Paid Sick Leave Effective 1/1/2011 Effective 1/1/2011

Paid Sick Leave Accrual SystemPaid Sick Leave Accrual System– Verified Sick Leave - starting banks Verified Sick Leave - starting banks

Based on past 10 years’ sick leave usage as of December 31, 2010Based on past 10 years’ sick leave usage as of December 31, 2010 Will give 120 hours accrual per year, less actual usage ≤ 120 hoursWill give 120 hours accrual per year, less actual usage ≤ 120 hours Converts to a maximum bank of 1,040 hoursConverts to a maximum bank of 1,040 hours

– Unverified Sick LeaveUnverified Sick Leave Staff: Accrue 8 days annually; Faculty: Accrue 6.64 days annuallyStaff: Accrue 8 days annually; Faculty: Accrue 6.64 days annually Hours accrued in excess of maximum annual accrual will roll over into Hours accrued in excess of maximum annual accrual will roll over into

verified sick leave bankverified sick leave bank Balances on December 31, 2010, roll overBalances on December 31, 2010, roll over

– Qualifies for up to 6 months of additional service credit under Qualifies for up to 6 months of additional service credit under MOSERSMOSERS MOSERS website capability to enter sick leave accrual and MOSERS website capability to enter sick leave accrual and

forecast a projected retirement benefitforecast a projected retirement benefit Memo forthcomingMemo forthcoming

Employee Paid Sick Leave Employee Paid Sick Leave Effective 1/1/2011 Effective 1/1/2011

Short Term Disability PlanShort Term Disability Plan– 30 Calendar Day Elimination Period:30 Calendar Day Elimination Period:

Use Verified Sick Leave, Unverified Sick Leave and PTO for Use Verified Sick Leave, Unverified Sick Leave and PTO for paid leavepaid leave

At end of Elimination Period, employee can choose one of At end of Elimination Period, employee can choose one of two options:two options:

– Continue using banked paid leaves at 100% pay; orContinue using banked paid leaves at 100% pay; or– Use Short Term Disability policy at 60% payUse Short Term Disability policy at 60% pay

Cannot use leave time to supplement Short Term Cannot use leave time to supplement Short Term DisabilityDisability

Employee Paid Time Off (PTO)Employee Paid Time Off (PTO)Effective 1/1/2011 Effective 1/1/2011

Paid Time Off (PTO) System includes:Paid Time Off (PTO) System includes:– Employee’s current vacation accrual schedule Employee’s current vacation accrual schedule

plus 92 hours of energy conservation leaveplus 92 hours of energy conservation leave– Maximum annual accrual limit: 340 hoursMaximum annual accrual limit: 340 hours– Maximum payout at termination – 240 hoursMaximum payout at termination – 240 hours– Current vacation balance rolls over into new Current vacation balance rolls over into new

PTO balancePTO balance– PTO balances roll over from year to yearPTO balances roll over from year to year

No change in paid holidaysNo change in paid holidays Eliminate vacation buybackEliminate vacation buyback

Documents

2011 Annual Benefits Open Enrollment