BEDFORD COUNTY PUBLIC SCHOOLS

1. BEDFORD COUNTY PUBLIC SCHOOLS Open Enrollment Benefit Update For 2013-2014

2. Remaining Unchanged • Dental benefit and rates – Dependents now covered until age 26 • Vision – Dependents now covered until age 26 • AFLAC

3. VRS • No change to overall VRS rate • Employees will be moved from 3% Contribution to 5%. • This 2% increase will be offset with a 2.4% increase in salary • Your account information can be accessed from www.varetire.org • Click on MyVRS and register

4. Health • Overall 0.5% increase in premiums • Success of self-funded plan • Carryover operating funds were moved into the plan

5. Health • $1,500 Complete Plan • School Board is covering the 0.5% increase • Changed the co-pay for physical therapy from $50 to $25

6. Health • $2,500 High Deductible with Health Savings Account • Increased deductible • Employee only from $2,500 to $3,000 • Employee plus from $5,000 to $6,000 • Plan will pay 100% after deductible is met • Increased employer contribution to the Health Savings Account • Payment into Health Savings Account twice a year

7. $3,000 High Deductible • How is it different? • No co-pay; you pay the entire doctor bill, however, you still receive the Piedmont discounted rate • No drug card; you pay the Piedmont discounted rate, or you can go to Wal-Mart or another retailer • So, if the deductible is higher and you are required to pay the doctor bill, how can this plan be better than the $1,500 complete plan?

8. $3,000 High Deductible • The Health Savings Account is the reason, but this still might not be the plan for everyone! • Everything counts toward the deductible, whereas the co-pay for the doctor and drugs under the $1,500 plan do not count toward the deductible • You still are allowed a wellness visit at no cost • Money put into your Health Savings Account is yours

9. $3,000 High Deductible • Health Savings Account • Everything that goes in is yours, and you do not need to use it by the end of the year • Money goes in tax free, earnings are tax free, and when you take it out it is tax free (Only for valid medical expenditures) • Choice of bank account with debit card –or- • 22 different Vanguard Mutual funds • No forms to fill out to get your money, just take it out. However, you are responsible for providing IRS proof that you had valid expenses to cover the withdrawal • There are limits to the overall contribution: • Employee Only $3,250 • Employee Plus $6,450 • You and your spouse cannot be enrolled in a Flexible Spending Plan (AFLAC)

10. $3,000 High Deductible • Example: Employee Only • Savings on employee premium $120 • Employer contribution to Health Savings $1,500 • Total savings $1,620 • Compare to the $1,500 difference in deductible from the 1,500 Complete plan • If you do not need the money to cover expenses, you can leave it in the account, it is yours

11. $3,000 High Deductible • Example: Employee Plus • Savings on employee premium: • Child $1,080, Children $1,320, Spouse $2,292, Family $2,736 • Employer contribution to Health Savings: • Child $1,500, Children $2,204, Spouse $1,566, Family $2,410 • Total savings: • Child $2,580, Children $3,524, Spouse $3,858, Family $5,146 • Compare to the $3,000 difference in deductible from the $1,500 Complete plan

12. Who Should consider the $3,000 high deductible? • Everyone! • Possible reasons for NOTchoosing the plan: • If you are currently on expensive medications, remember, there is no co-pay; you pay the cost • You need to have access to cash to meet the deductible. Between the savings in premium and what the board is contributing to the Health Savings Account, this should not be an issue. Payments into the Health Savings will take place in June and January.

13. BEDFORD COUNTY PUBLIC SCHOOLS Open Enrollment Benefit Update For 2013-2014 • QUESTIONS?