Open Enrollment 2012

Employee Benefits

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Faith HitesSenior Account Manager, Group

BenefitsRaffa Financial Services, Inc.

Brady J. FosterBroker, Group BenefitsHMBS Group Insurance, LLC.

Moderator

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Open Enrollment Means…

You may enroll in coverage

You may add or drop dependents

You may change benefit plans – Medical, Dental, Vision

If you are utilizing the Flexible Spending Account (FSA), you Must elect new contributions to your Medical Expense and Dependent Care Plans

You Must re-elect your taxation choice on your Short and Long-Term Disability benefits by completing the paper form

Open Enrollment

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Important Information

Open enrollment begins December 5, 2011.

All Open Enrollment Elections Must be Made by December 16, 2011 – No Exceptions!

Medical, Dental, and Vision Open Enrollment Elections are completed online through Benefit Mall. Instructions to log onto Benefit Mall are available in your open enrollment packet.

If no changes are to be made to your Medical, Dental, and Vision benefits, then you do not need to log onto Benefit Mall. Your benefits from 2011 will renew automatically in 2012.

Paper forms will be provided for the FSA (Medical & Dependent care) election, your HRA Acknowledgement, and your STD / LTD taxation election. These forms Must be filled out and submitted during Open Enrollment. 4

What’s New With Benefits…

New POS Low Cost Medical Benefit Option for Local (VA, DC, or MD) and Out of Area Employees (all other states). Look for additional details on plan deductibles, co-pays, etc… on the Medical Analysis page in your open enrollment packet.

Both the CareFirst HMO and POS plans from last year have been eliminated in favor of a new Lower Cost POS Plan.

The Dental Plan changed from Humana to Guardian

Introduction

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What’s Not Changing This Year…

CareFirst PPO plan

Reliance Standard for Life, Short-Term and Long-Term Disability

FSA (Medical & Dependent Care ) and HRA administration with The 125 Company

Introduction

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Discussion Topics…

CareFirst Medical Plans (PPO vs. POS)

HRA Card, Prescription & Vision Plans

Guardian Dental Plan

Reliance Standard Life & Disability Plans

Flexible Spending Accounts (Medical & Dependent Care)

Benefit Review

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CareFirst Health Plan Options for Local and Out of Area Employees…

Option 1: Open Access POS (New!)

Option 2: Blue Preferred PPO

Medical Plan Introduction and Pricing

PPO Blue Preferred NEW! POS

2012 cost 2012 Cost

Employee $167.27 $112.80

Employee & Child $317.81 $240.11

Employee & Spouse

$393.08 $296.98

Family $459.99 $347.53

• All premiums are shown as monthly employee costs.• To find your bi-monthly premium cost, divide the above amount by 2.

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Medical Benefits Terminology

Networks

Local includes employees located in VA (excluding Dalgren), DC, & MD

Out of Area includes all other BCF employees

In Network includes doctors participating in the Blue Cross Blue Shield Network

Out of Network includes all doctors not participating in the Blue Cross Blue Shield Network

Terms

Deductible the amount an individual must pay for health care expenses before co-pays & co-insurance begins to cover your medical costs. BCF covers this expense by issuing you an HRA card.

Co-insurance refers to the percentage of money that an individual is required to pay for services, after a deductible has been paid, up to the annual out of pocket max.

Co-pay a predetermined (flat) fee that an individual pays for health care services. For example, the POS plan requires a $30 copayment for each office visit.

Out of Pocket Maximum a predetermined amount that an individual must pay, annually, before health care expenses will be covered at 100% by Blue Cross Blue Shield. 9

CareFirst Open Access POS Health Plan

Local POS plan is part of the Regional CareFirst Blue Choice Network (you

must use this network locally!) Out of Area POS plan is part of the National Blue Preferred / Blue Card

Network. All out of area employees may utilize the same network of doctors

for both the POS & PPO plans.

A Point of Service (POS) Plan is a hybrid between an HMO and PPO plan offering the features of both plan types.

A Point of Service (POS) Plan is a hybrid between an HMO and PPO plan offering the features of both plan types.

A Primary Care Physician (PCP) must be selected. You DO NOT need referrals

to see a specialist. Instructions on how to find a doctor can be found in your

enrollment package.There is a deductible that needs to be met with coverage.HRA cards WILL BE used to cover deductible expenses up to the in-network

deductible $ amount.After you meet your deductible, a co-payment is charged for all medical

services. HRA cards DO NOT cover co-payments.

POS Networks

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CareFirst PPO Health Plan

The BCF Solutions VA Blue Preferred PPO plan has not changed.

All Local and Out of Area employees are eligible to elect the PPO plan option.

The PPO is part of the National Blue Preferred / Blue Card Network. This means you are eligible to use any Blue Cross Blue Shield doctor from their nationwide network without a referral.

After you meet your deductible, the PPO plan does not have a co-pay associated with regular doctor visits.

Just as last year, your HRA card will cover your in-network PPO deductible.

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CareFirst – How to Find a Doctor

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Click to find a Provider

CareFirst – How to Find a Doctor

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POS – Local and Out of Area

PPO

All CareFirst BCBS Health Plans are HRA’s…

CareFirst Health Plans

The $ amount on the HRA debit card is equal to your In-Network

deductible.

BCF management elected to cover all in-network employee medical

deductible expenses through the HRA debit card.

The HRA debit card can ONLY be used to pay for services that are subject

to the Medical Deductible, this includes:

Inpatient and Outpatient hospitalization services or surgeries

Emergency Services (Ambulance, Emergency Room, or Urgent Care)

Visits to your Primary Care Doctor or a Specialist

Lab and X-Ray Fees

Mental/Nervous or Substance Abuse hospitalizations or physician visits* Please note this is not a complete and comprehensive list.

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All CareFirst BCBS Health Plans are HRA’s…

CareFirst Health Plans

Below are some examples of what the HRA debit card

CANNOT BE USED FOR.

Prescription Drug Co-Pays

Cosmetic Surgery

Vision Care

All Dental Expenses

All POS Co-Payments (after the deductible is met)

Any expense related to co-insurance after the deductible has

been met

* Please note this is not a complete and comprehensive list.

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Additional HRA Information

HRA Website: www.125Company.com

How to use the HRA

Monitor your account

Upload “Explanation of Benefits/Receipts” to the website

Explanation of Benefits are mailed from BCBS and can also be found on

the CareFirst website

Don’t pay for your appointment while at the doctor’s office.

The doctor needs to first submit a claim to BCBS and then send you a bill.

Wait for the bill to be mailed to you.

If your HRA card is not accepted by the doctor you have two options

1. You can pay for it out of pocket and then submit a reimbursement claim

(form on the BCF website)

2. You can submit the reimbursement form with your EOB to 125 Company

(form on the BCF website) and once you receive the money, pay the bill.

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Prescription Drug Plan

Drug Benefit Description $15 Generic Drugs

$35 Preferred Brand prescription or refill. Preferred Brand is designated by CareFirst

$60 Non Preferred Brand prescription or refill

If you use a Non Preferred Brand name drug and a

Generic is available, you will pay the difference in the

cost of the drugs.

Injectables – you pay 50% up to a $100 Co-pay

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Prescription Drug Plan

All $ amounts are co-pays.  The co-pay is Not covered by the

HRA card.

Maintenance medications are eligible for the Mail Order

Program, where you can get 3 months of medication for only 2

co-payments. Forms and information can be found online at

www.carefirst.com

If the cost of the drug is less than the listed co-pay, the

employee will only have to pay the cost of the drug at the time

the prescription is filled.

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CareFirst Plan Comparison – All Employees

Medical Benefit (All are HRA Plans)

Open Access POSBlue Preferred

PPOIn - Network Out of Network In - Network Out of Network

Deductible (Individual)

$1,400 $2,800 $2,000 $4,000

Deductible (Family) $2,800 $5,600 $4,000 $8,000

Co-Insurance 100% 70% 100% 80%

Out-Of Pocket Maximum

$2,800 / $5,600 $5,600 / $11,200 $7,000 / $14,000 $15,000 / $15,000

Maximum Benefit Unlimited Unlimited Unlimited Unlimited

Inpatient Hospital Ded then $300 Ded then 70% Ded then 100% Ded then 80%

Outpatient ServicesDed then /$30 Dr

$300 facilityDed then 70% Ded then 100% Ded then 80%

Lab & X-Ray Ded then $30 Ded then 70% Ded then 100% Ded then 80%

Emergency Room Ded then $300 Ded then $300 Ded then $100 Ded then $100

Physician/Specialist Ded then $30 Ded then 70% Ded then 100% Ded then 80%

Prescription Drugs $15/$35/$60 $15/$35/$60 $15/$35/$60 $15/$35/$60

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Plan is Administered by CareFirst and Davis Vision

Network – Davis Vision

Providers Can Be Located On-Line at https://idoc.davisvision.com/davis/member/adv_doc_locate_v2.asp

CareFirst Blue Vision Plus Plan

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Vision Plus2012 cost

Employee $3.58

Employee & Child $6.60

Employee & Spouse

$8.21

Family $10.18

• All premiums are shown as monthly employee costs.• To find your bi-monthly premium cost, divide the above amount by 2.

Your CareFirst Medical plan does have vision coverage that will cover most vision related needs. You will have to pay a copayment at the time of your visit for an eye exam on both PPO and POS plans. There are discounts for eyeglasses and contacts.

All eye injuries and eye related diseases are covered through your CareFirst medical plan.

The Vision Plus benefit is for those individuals who need extra vision coverage.

All in-network Vision Plus plan participants receive an annual eye exam, frames, lens, and contacts with no copayments. All out of network participants are required to pay a portion of your vision services as illustrated on the next page.

CareFirst Blue Vision Plus Plan

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CareFirst Blue Vision Plus Plan

Vision Benefits Davis Vision Network

Exam Frequency 1 per 12 Months

Lenses Frequency 1 per 12 Months

Frame Frequency 1 per 12 Months

Co-Pays Davis Vision Provider Other Provider

Vision Exams $0 Co-Pay Plan Reimburses $45

Lenses (Single Vision) $0 Co-Pay Plan Reimburses $52 - $181

depending on lens type

Lenses (Bifocals) $0 Co-Pay

Lenses (Trifocals) $0 Co-Pay

Frames

$0 Co-Pay for Tower Collection; Plan

Allowance of $45 for Non-Tower Collection

Plan Reimburses $45

Contacts (Medically Necessary)

$0 Co-Pay Plan Reimburses $285

Overview of Vision Benefits…

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Guardian Dental Plan

Plan is Administered by Guardian Dental

Network – PPO / Traditional Preferred

TX and GA employees have state mandated benefits

Providers can be located online at www.guardiananytime.com/fpapp/FPWeb/home.process

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Guardian Dental

2012 cost

Employee $12.78

Employee & Child $24.56

Employee & Spouse

$29.03

Family $41.31• All premiums are shown as monthly employee costs.• To find your bi-monthly premium cost, divide the above amount by 2.

Overview of Dental Benefits…

Guardian Dental Plan – Non TX or GA

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GuardianDental Benefits

Guardian Choice Plan

PPO Value Plan (Fee Schedule) PPO NAP Plan (90% UCR)

In - Network Out of Network In - Network Out of Network

Deductible (Individual) $50 Combined $50 $50

Deductible (Family) $150 Combined $150 $150

Preventive Care100% (No Deductible)

100% (No Deductible)

100% (No Deductible)

100% (No Deductible)

Basic Services100% After Deductible

100% After Deductible

80% After Deductible

80% After Deductible

Major Services60% After Deductible

60% After Deductible

50% After Deductible

50% After Deductible

Annual Maximum $2,500 with Rollover $2,500 with Rollover

Overview of Dental Benefits…

Guardian Dental Plan – TX and GA

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Guardian Guardian PPO NAP Plan (90% UCR)

In Network Out of Network

Deductible (Individual) $50 Combined

Deductible (Family) $150 Combined

Preventive Care 100% (No Deductible) 100% (No Deductible)

Basic Services 80% After Deductible 80% After Deductible

Major Services 50% After Deductible 50% After Deductible

Annual Maximum $2,500 with Rollover

*Due to State Mandates al TX and GA employees must be on this plan

Benefits are Staying the Same…

Three (3) Employer-Paid Plans

Group Short-Term Disability Insurance

Group Long-Term Disability Insurance

Group Term Life Insurance

Reliance Standard Benefits

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STD/LTD Benefits Terminology

Tax Choice Option

Payment on Premium you can opt to pay the initial taxes on the premium payments to avoid paying taxes on your disability income benefits once you are receiving them.

Payment on Benefit you will pay taxes on any disability income benefits you receive.

Terms

Waiting Period or Elimination Period the period of time that must lapse from the onset of a disability, before you are eligible to receive weekly or monthly benefits.

Benefit Percentage the amount payable to you, based on a percentage of the your income prior to disability. The proceeds are limited to an overall maximum amount.

Duration of Benefits the amount of time you are able to collect disability income

Benefit Maximums the maximum amount of disability income you are allowed to receive based on your salary at the time of injury. Amounts are paid weekly for STD and monthly for LTD

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Waiting Period (0 Days Accident/7 Days Sickness)

Benefit Percentage (60%)

Duration of Benefits (13 Weeks)

Benefit Weekly Maximum ($1,500)

You Must re-elect your taxation choice on your Short-Term Disability benefits by completing the paper form

Tax Choice Option – Payment on Premium or Benefit

Short-Term Disability Insurance

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Waiting Period (90 days)

Benefit Percentage (60%)

Duration of Benefits to Age 65 / Social Security Normal Retirement Age (SSNRA)

Benefit Monthly Maximum is ($7,500)

You Must re-elect your taxation choice on your Long-Term Disability Benefits by completing the paper form

Tax Choice Option– Payment on Premium or Benefit

Long-Term Disability Insurance

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Procedure

Employees seeking to use BCF’s disability insurance are required to provide notice to their Supervisor of the need to utilize their STD or LTD benefits. Employee requests are submitted via the BCF Leave Request Form (found on the BCF Website).

To receive disability benefits, a claim form must be submitted. The Reliance STD Claim Form can be found on the BCF website. Please return this form to HR.  Supervisors will forward the Leave Request Form to HR. If an employee is uncomfortable discussing or providing information on a medical condition, the employee may contact HR directly. In this case, HR will notify the Supervisor and inform them of the request and decision. Every effort will be made to maintain employee privacy regarding the medical condition.

Disability Insurance

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Two (2) Times Annual Salary

Class I: Maximum Benefit of $200,000

Maximum Benefit Without Medical Questionnaire

In the event that something should happen to you, your beneficiary will need to contact your direct manager who will start the claims process with the HR Manager.

Group Life Insurance

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Class I - Regular Benefit Class II - Tax Relief Benefit

2 x Salary to $200,000 2 x to $50,000. Employees who elect Class II do so to avoid paying tax on the amount over $50,000

Pre-Tax Contributions for Eligible Out of Pocket Medical expenses…

FSA – Medical Expenses

Up to $3,000 can be set aside to pay for eligible medical expenses for plan year 2012

Full amount elected can be accessed immediately

An FSA can be used to pay for medical, dental, vision, or prescription expenses.

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Pre-Tax Contributions for Eligible Dependent Care Expenses…

FSA - Dependent Care Account

Up to $5,000 can be set aside to pay for eligible Dependent Care expenses for plan year 2012

Expenses are reimbursable as contributions become available through your payroll deductions. Reimbursement form is located on the BCF website

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Reminder - Important Information

All Open Enrollment Elections Must be Made by December 16, 2011 – No Exceptions!

Medical, Dental, and Vision Open Enrollment Elections are completed online through Benefit Mall. Instructions to log onto Benefit Mall are available in your open enrollment packet.

There will still be paper forms that must be filled out for the FSA (Medical Expense & Dependent Care) election, HRA Acknowledgement, and your STD / LTD taxation election.

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Reminder - Important Information

Forms to be filled out and submitted to HR:

FSA – Medical and Dependent Care STD / LTD Taxation Election HRA Acknowledgement

These forms MUST be returned even if you are not making changes!

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Thank You For Your Participation…

Questions

Who can I call with Additional Questions?

BCF Human Resources Department PMA/S4 – Sunita Gupta; 703-817-9475;

Sgupta@bcfsolutions.net Defense & Space – Dina Johns; 703-717-9937;

Djohns@bcfsolutions.net Triad – Mike Parker; 626-793-7314; Mparker@bcfsolutions.net

Angela Fitzpatrick, Raffa Financial ServicesBCF’s Dedicated Customer Service Representative240-403-2546

Brady J. Foster, HMBS Group Insurance, BCF’s Dedicated Insurance Broker949-630-2523, cell 949-244-6421; Bfoster@hmbsinsurance.com

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