2014 Employee Benefits Open Enrollment. October 14 November 1. Great News for 2014!. New plans More choices 0% increase for medical, dental and vision Opportunity to decrease medical premium expenses Personalized enrollment help for everyone. Mountain Top View. - PowerPoint PPT Presentation
2014 Employee Benefits Open EnrollmentOctober 14 November 111Great News for 2014!New plansMore choices0% increase for medical, dental and visionOpportunity to decrease medical premium expenses Personalized enrollment help for everyone
22Mountain Top ViewHeading into our third year of our high deductible health plans, we can unequivocally say that our three fold strategy is working!
Goal #1: To beat down health care trend to stabilize premium costs for the company and for our employees even in the midst of healthcare reformHealthcare trend increases for high deductible health plans averages 6 8%, PPO increases range 8 12% and HMO increases range from 12 15%
Salient Results: We have averaged a 1.7% increase per year over the three years even when healthcare reform was adding costs into our plans0% increase at 1st anniversary5% increase at 2nd anniversary0% increase at 3rd anniversary
33Mountain Top View (continued)Goal #2: Provide an opportunity for our employees to begin saving for future retiree health expenses using Health Savings Accounts (HSAs)Salients contribution to employees HSA accounts is on the high side of industry averages Average is $500/$1,000Salient contributes $750/$1,500
Salient Results:Employees account balances have steadily increasedPEACE OF MIND accumulated savings can be built up to offset any potential out-of-pocket expenses in a given yearSAVINGS FOR THE FUTURE with the increased account balances, employees are putting money away that can be used for future expenses (retiree healthcare or COBRA)
44Mountain Top View (continued)Goal #3: Provide high-quality insurance plans which offer choice along with both short- and long-term protectionsSalient Results:Salients coinsurance after the deductible is met and underlying insurance plan is on the high side of industry averages.Industry average is 80%/60% ; Salients plan is 90%70%Robust insurance protections Adding third medical plan for 2014 to offer additional choice, lower premiums and provide simplicityLowest premiums for employees! Salient is paying an additional 10% towards premiums for the Value PlanOnce deductible is met, eligible expenses are paid at 100% for remainder of yearAs HSA balances have grown, employees have opportunity to afford higher deductible
55Ground-level View Its all about personal choiceAdding third medical planRaised deductible and out-of-pocket in Standard Plan with a resulting 7% drop in premium costsAdding additional voluntary insurance plans to help protect against deductible expensesEngage me!New wellness program with easy to use toolsImproved pricing tools on Cigna site to predict healthcare costsOpen Enrollment road showConcierge benefit enrollment experience66Whats Not Changing in 2014?Our commitment to your health and well beingOur continued belief in the value of consumerismProviding you a full complement of products and servicesPremiums for medical, dental, visionBenefit partners for medical, dental, vision, life, and disability77Whats New in 2014?New BenefitDescriptionAddition of new medical plan(Once deductible is met, all covered expenses paid at 100%)Value PlanIn Network Deductible & OOP -- $3,750/$7,500Out of Network Deductible & OOP -- $7,500/$15,000Lowest premiums and highest company contributionAccidental Death & Dismemberment InsuranceInsurance that pays in the event of an accidental death or loss of limb, eyesight, etc.24-Hour Accident InsuranceServes as supplement to medical plan and pays regardless of other coverage; Helps minimize out-of-pocket expenses due to accidents (dislocations, fractures, burns, concussions, etc.)Critical Illness InsuranceProtects against serious health problems such as stroke, heart attack or cancer; Benefit pays a lump sum upon first diagnosis of a covered condition88Whats Changing in 2014?Current BenefitNew BenefitHigh Premium/Low DeductibleLow Premium/High DeductibleName Change to Premium PlanName Change to Standard PlanLow Premium/High DeductibleIn Network Deductible -- $2,000/$4,000Out of Network Deductible -- $4,000/$8,000In Network Out of Pocket -- $4,000/$8,000Out of Network Out of Pocket -- $8,000/$16,000Standard PlanIn Network Deductible -- $2,500/$5,000Out of Network Deductible -- $5,000/$10,000In Network Out of Pocket -- $5,000/$10,000Out of Network Out of Pocket -- $10,000/$20,000Premiums decreased by 7%Short-term Disability PlanSame benefit but moving to new set of rates based on ageWageWorks for FSA/HRA/Transit/COBRANew Partner Flores & AssociatesEnhanced servicesChase Bank for HSA AccountsNew Partner HSA Bank for HSA AccountsTransfer information at OE appointmentsHSA Company Contributions$750/$1,500 per yearExtra $187.50 or $375 for wellness awardHSA Company Contributions$562.50/$1,125 per yearExtra $187.50 or $375 for wellness awardLimeade Wellness ProgramMotivateMe! Wellness Program 992014 Contribution LimitsContribution TypeAnnual Limit for 2014401(k)$17,500401(k) Age 50+$17,500 + $5,500 Catch-upHealthcare Flexible Spending Account*$2,500Limited Purpose Flexible Spending Account*$2,500Dependent Care Flexible Spending Account*$5,000Health Savings Account*: Participation in Wellness ProgramEmployee Only: $2,550Family (2 or more): $5,050Health Savings Account*:Non-Participation in Wellness ProgramEmployee Only: $2,737.50Family (2 or more): $5,425.00*You must make your contribution election through a Benefit Educator if you want to contribute to any of these accounts.10102014 Benefit PartnersBenefitPartner401(k)Transamerica Retirement ServicesMedicalCigna HealthcarePharmacyExpress ScriptsDentalUnited ConcordiaVisionVision Service PlanLife, Disability, Supp Life and Supp AD&DMetLifeHealth Reimbursement Accounts, Flexible Spending Accounts, Commuter and COBRAFlores & AssociatesHealth Savings AccountsHSA BankAccident and Critical Care InsuranceUNUM1111Health Care ReformHow it Impacts All of UsThe Patient Protection and Affordable Care Act requires Salient to:Cap healthcare FSA contributions at $2,500Display the value of your health insurance benefits on your W-2Provide a Summary of Benefits and Coverage (SBC) prior to open enrollmentProvide the Health Insurance Marketplace Coverage Options notice by October 1New fees added into premium rates1212Our Medical PlanDares to Be DifferentOptimizes both employer and employee costs today and into the futureMedical cost escalationTax optimizationRetiree health savings
13A Plan For Today and Tomorrow1414A Great Plan In SicknessAbsolute out-of-pocket maximum per yearDrugs and medical expenses combinedHealth Savings Account to offset deductible expenseBest in class medical and Rx providerFreedom to choose network or non-network providers
1515And a Great Plan In HealthSuperb insurance coverage at affordable premium rates100% preventive care benefit for whole familyAbsolute yearly out-of-pocket maximum costsEmployer provided Health Savings Account that is always yours now and into the future.
1616Value Plan DetailsOne and DoneDeductible and Out of Pocket are the exact sameAfter satisfying deductible, expenses are paid at 100% for rest of yearHSA Wellness Contribution for employee + spouse/partnerLowest premium planRates more highly subsidized by Salient (81% for employee only and 69% for employee + other)Same excellent medical and Rx coverage
17The Tax Man ComethImportant tax rules governing all pre-tax accountsUnderstand the rules and apply them to your best advantageThere are many options spend time during your enrollment session discussing how to optimize your tax savings.
1818Health Savings AccountsSalient will contributeUp to $750 for employeeUp to $1,500 for employee + 1 or moreWellness contribution only for the Value PlanOpportunity for you to save taxes while setting aside money to pay for deductible and out of pocket expensesMust not be covered under any other health insurance plan (spouse/partner, VA, Tricare, COBRA, retiree plan, Medicare, etc.)Triple Tax ProtectedPortable always yoursCan be used for medical, Rx, dental and vision expensesMay be combined with a Limited Purpose FSA for additional tax savings1919Benefit Accounts All of these accounts are subject to IRS rules and regulations. This chart is intended for summary purposes only.20
Health Savings Account (HSA)Health Reimbursement Account (HRA)Eligibility: Must be enrolled in CIGNA domestic plan and must not have any other insurance (TRICARE, VA, Spousal Plan, Retiree, etc.)Eligibility: Must be enrolled in CIGNA domestic plan. May have additional health coverage outside of Salient.Salient contributes to Premium and Standard Plans:$750/$1,500 if wellness activities completed$562.50/$1,125 if wellness activities are not completedEmployee May Contribute:$2,550/$5,050 if wellness activities completed$2,737.50/$5,425 if wellness activities not completedSalient contributes to Premium & Standard Plans:$750/$1,500 if wellness activities completed$562.50/$1,125 if wellness activities are not completedSalient contributes to Value Plan:$187.50/$375 if wellness activities completedEmployee May Contribute:$3,112.50/$6,175.00 if wellness activities completed$3,300.00/6,550.00 if wellness activities not completedSalient contributes to Value Plan:$187.50/$375 if wellness activities completed
IRS Pretax Limit for 2014 for all contributions:$3,300 Employee Only$6,550 Employee + One or MoreLimited to Employer Contributions OnlyBalance rolls from year to year and portable upon leaving.Balance rolls from year to year. Balance upon termination from plan is forfeited to Salient.Can be used for medical, Rx, dental or vision expensesCan be used for medical, Rx, dental or vision expenses
20Which Plans Work TogetherSalient Medical Plan ElectionEligible for HSA or HRAEligible for General FSA or Limited FSAPremium Plan (high premium/low deductible)HSALimited FSAStandard Plan (low premium/high Deductible)HSALimited FSA
Value Plan (lower premium/higher deductibleHSALimited FSA
Decline Salient Medical InsuranceNeitherGeneral FSAAny Salient Medical Plan and Medical Plan with another provider (TRICARE, spouses plan)HRAGeneral FSA2121Pharmacy: Express ScriptsPrescriptions are part of the high deductible planPreventive drugs are not subject to the deductibleAll other drugs are subject to deductible and out of pocket limitsVery large national network of pharmaciesOnce deductible is met (e.g. $1,500 for employee only or $3,000 for family) employee pays 20% of cost up to max. per below
22Retail PrescriptionMail Order PrescriptionGenericMax of $30GenericMax of $75FormularyMax of $60FormularyMax of $150Non-FormularyMax of $100Non-FormularyMax of $25022TRICARE SupplementIf you are enrolled in DEERS and TRICARE, you may elect to participate in the TRICARE Supplement on a pre-tax basisSupplement provides coverage for out-of-pocket expenses associated with TRICARE Prime or Standard or Extra coverageFor more information please visit: http://www.asicorporation.com/faq_corporate.htmlYou may supplement TRICARE through Salients CIGNA high deductible health planNo HSA, but can have a HRA (Health Reimbursement Account) with a company contributionMay elect to have a FSA to pay for additional medical, dental or vision expenses2323UCCI PPO Dental PlanStrong network across the U.S.Same Coverage for In- or Out-of-Network ProviderPreventive Services- covered at 100% (includes cleanings, exams, x-rays)Basic Services - covered at 80% Major Services - covered at 50%Orthodontia - covered at 50%, lifetime maximum benefit of $2000.00; coverage available for adults and children
2424UCCI PPO Dental PlanPlan Year Deductible - Individual $50- Family $150Annual Maximum - $2000 per memberDental deductible plan year currently runs April 1 through March 312014 will be a short plan (April 1 through December 31)Beginning 2015, the dental deductible will run calendar year (January 1 through December 31) 25Vision Service Plan (VSP)Employee paid vision plan, offered through VSPLargest vision network in the nationBenefits from a VSP Participating Provider:Routine Vision Exams: $10 copay, every 12 monthsLenses: $25 copay, every 12 monthsFrames: $25 copay, every 24 monthsContact Lens (in lieu of frames and spectacle lenses): No copay, every 12 months maximum benefit $130.00 annuallyReimbursable benefits vary for non-participating providers Note: VSP guarantees service from VSP doctors only. When you see a VSP provider, youll get the most out of your benefit and have a lower out-of-pocket cost.
Life and Disability Plans
Name of PlanBenefit DetailsBasic Life1 x base salary up to $100k; company paid core benefitBasic AD&D1 x base salary up to $100k; company paid core benefitVoluntary LifeEE - Up to 5 x base salary to maximum of $500,000; $160k guarantee issue at hireSP - Benefit available up to $250,000; guarantee issue $25,000CH - Maximum guarantee issue $10,000Voluntary AD&DEE Lesser of 10x annual salary or $500,000EE + SP 50% of Employee amountEE + SP + CH Spouse 40% of employee amount, each child, 10% of employee amountEE + Child(ren) each child 15% of employee amountVoluntary Short-term Disability60% of base salary capped at $2,500 weekly maximum benefitLong-term Disability40% of base salary capped at $10,000 monthly maximum; company paid core benefitVoluntary Buy-up to LTDAdditional 20% on top of company-paid 40%; total of 60% of base salary capped at $10,000 monthly maximum27
27Voluntary STDCurrent STD PlanSalients rates are coming off a three year rate guarantee based on a very low average age and very favorable experienceSalient STD premium was a single premium for everyoneATS employees remained on age-banded premium ratesHigh utilization rates for both groups2014 STD PlanSTD Plan moving to age banded rates for everyoneKeeping same 7 day waiting periodRates are increasing for everyoneLess impact to ATS employees28
28Accident InsuranceProtects against a wide range of accidents including dislocations, fractures, burns, concussions etc.Coverage for employee, spouse and/or dependent(s)Scheduled lump sum payout based on type of accidentPays regardless of other insuranceMinimizes high deductible exposure due to accidentsNo health questionsFully portable
29Critical Care InsuranceProtects against serious health problems such as stroke, heart attack or cancerLump sum benefit paid upon first diagnosis of a covered conditionCoverage available for employee, spouse or dependent(s)Fully portable30
31Building Your Retirement AccountThe convenience and automated features offered by Salients plan make it easier for you to save -- you may hardly miss the additional savings going toward your futureBy saving your own money, you build a larger retirement account, you receive the companys matching contribution and you save Federal, State and FICA taxes
32401(k)33EligibilityMust be 21 or older and meet the 30 day waiting periodParticipation begins the f...