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DriveTime's New Medical Plan: A Head Start on 2013!

Learn about DriveTime's new medical plan option for 2012 and get a head start on the changes coming in 2013. Discover why DriveTime is making this change, what the new plan offers, and how it will affect employees. Find out how the plan compares to national averages and how wellness programs can help lower healthcare costs. Understand the factors driving healthcare costs and learn how to proactively manage your health and healthcare costs. Explore the benefits of DriveTime's new Liberty Plan and the tools and savings it offers.

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DriveTime's New Medical Plan: A Head Start on 2013!

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  1. A discussion about a new medical plan option for 2012 and getting a head start on 2013 You have a new choice!

  2. What are we covering in this presentation? • We are making a change in 2012 and 2013. • Why are we doing this? • What do we have today? • What is the change? • How will the change affect me?

  3. Why are we changing? • Health care costs continue rising for you and for DriveTime • DriveTime Per Employee Per Year cost is up over 20% over the last 3 years • An additional $3million/year cost to you and to DT • Plan terms are getting worse • National Averages for deductibles are $1K/$2K • In 2011 DT is only $500/$1K for individual/family • Our new plan is consistently at or below National averages for premiums, deductibles and co-pays • Wellness 1 premiums have remained unchanged for 4 years; 2012 we will continue without changes. Non-wellness premiums up over 20%! • Co-pay amounts have risen substantially for Specialist, Urgent Care and ER visits • 14,000 co-pays in 2010! • 2010 Wellness vs. Non-Wellness – Wellness Works! Medical: 7.1% lower costs PEPM RX: 22% lower costs PEPM Large Claims: 50% lower for Wellness vs. Non-Wellness

  4. Managing healthcare in the future • Healthcare cost (i.e. doctor, hospital and drugs) • Our health • Our use of healthcare Doctors Hospitals Drugs Our Health What Drives Healthcare costs Our use of Healthcare

  5. Healthcare In the U.S. Today • Healthcare in the U.S. today is driven primarily by three factors: • Cost of healthcare (i.e., doctor, hospital, drugs), our health, and our use of healthcare (i.e., generic vs. brand name drugs). • We control two: our health and our use of healthcare. • The Liberty Plan is about you and DriveTime partnering on your health and our healthcare costs.

  6. What now? How will we maintain and improve upon our advantage over other plans? How do we move from; “paying more for less” and “it’s too complicated” to an innovative model to “proactively manage our health and healthcare costs”? Complicated Paying more for less

  7. DT Traditional medical plan option • Currently, we have a PPO (Preferred Provider Organization) called our Traditional Plan through United HealthCare. • Using the Traditional Plan you pay: • Various co-pays • Deductibles • Co-insurance • Out-of-pocket maximums • The Traditional Plan does not include a way to save for future medical expenses.

  8. DT Traditional Plan Definitions • Set amount one pays to go to the doctor, urgent care or emergency room • For example = $25 for a primary care doctor visit CO-PAY DEDUCTIBLE • Amount of money you pay before your insurance starts to pay • For example; currently = $500 Individual / $1,000 Family • This is over and above any co-pays • Money you have to pay for health services after you have paid the deductible and co-pays • For example = 80/20 split CO-INSURANCE OUT-OF-POCKET-MAXIMUM • This is the most you have to pay in deductibles and co-insurance for covered health services during the plan year. This does not include co-pays. • For example; currently = $3,000 Individual / $6,000 Family

  9. How our Traditional Plan insurance works today Jon goes to his primary care doctor and needs to have surgery. He has surgery at an in-network facility. • Jon pays $25 (CO-PAY) to see his doctor. • When Jon has the surgery done the bill is $2,500 • He will pay $500 to meet the DEDUCTIBLE • The rest of the $2,000 is subject to the 80/20 CO-INSURANCE split meaning insurance will cover 80% and Jon will be responsible for the remaining 20% (20% of 2,000 is $400). • There is a $3,000 out of pocket maximum which Jon has not met so he will pay all of the 20% + the $500 deductible. • In total for this surgery, Jon will pay $25 + $500 + $400 = $925 • Jon continues to pay his bi-weekly medical premium

  10. Key Changes to the Traditional Plan Traditional Plan • Increased deductible: 2011: $500/$1,000 2012: $750/$1,500 • Increased Co-pays: 2011: $25 Office Visit $45 Specialist Visit 2012: $30 Office Visit $50 Specialist Visit • Increased Premiums for Non-Wellness: 2012: Wellness Tier 1 – No changes Wellness Tier 2 – No changes Non-wellness – approximately 15% increase in premiums

  11. In 2012 and 2013 how will this affect…. ME?

  12. The Future of our Medical Plans 2012 Two Medical Plans: • Traditional PPO Plan (our current plan) • Liberty Plan 2013 One Medical Plan: • The Liberty Plan

  13. Liberty Plan- Your new 2012 option 1 2 3 Savings Account Insurance Tools BOTTOM LINE INSURANCE: You will have the SAME medical coverage SAVINGS: You will have pre-tax way to save money in a personal savings account TOOLS: You will have options to help you with your healthcare

  14. Part One of Your Liberty Plan Medical Coverage & Services • THE MEDICAL PART: • Network and non-network coverage • Annual deductible • Lower premium payroll deductions • Protection from major costs • 100% preventative care services + Rx. • Personal support and tools • Help from 24-hour Health Coaches • No copayments Very similar to what we have today with the Traditional Plan

  15. What are the biggest differences for ME? Ways it is the SAME Ways it is DIFFERENT • Same coverage as today • Same services as today • Same in-network discounts • Deductible still applies • Preventative care • Lower premiums • Out of pocket expenses up front – no more co-pays • Higher deductible amount • Preventative care is 100% covered • Lower maximum out-of-pocket amounts • Free immunizations • Preventative prescriptions are 100% covered

  16. What do the Liberty Plan changes look like? Higher deductible Out-Of-Pocket Max Lower premiums Preventative care Preventative RX Company match Tools

  17. The Liberty Plan Deductible The Liberty Plan: • Higher deductible ($1,250 Individual/$2,500 Family) • You pay 100% of healthcare costs up to the deductible (vs Traditional Plan where co-pays, co-insurance, etc. apply) • Example: 1. You visit the doctor and are charged $65.00. Your Traditional Plan co-pay would be $30.00. Under Liberty, you pay $65.00.* 2. You visit the pharmacy. Your prescription is a tier 2 drug and costs $85.00 . Under the Traditional Plan, you pay $30.Under Liberty, you pay $85.00*(or you go to Wal-Mart and pay $4.00 for a generic). *Assumes you have not hit the limit on your deductible.

  18. The Liberty Plan Deductible Cont. • Today, because of co-pays you may not typically reach your deductible. Sometimes the co-pay is close to the medical costs (i.e., Dr. visits at $25 co-pay) and sometimes it is not (i.e., emergency room visits at $150 co-pay). • With Liberty, you pay 100% of your costs up to the deductible. • No co-pays • We’re here to partner with you: • Company savings match (paid up front!) • Lower premiums (use the difference to save even more with your Liberty Plan!). • Tools to help you make better healthcare choices. For example, Health Advocates is a new vendor coming on in November 2011 for questions on your bill, claims and which doctor is best for you. They’ll be there to provide support for you.

  19. The Liberty Plan 1 2 3 Savings Account Insurance Tools BOTTOM LINE INSURANCE: You will have the SAME medical coverage SAVINGS: You will have pre-tax way to save money in a personal savings account TOOLS: You will have options to help you with your healthcare

  20. Part Two of Your Liberty Plan Savings Advantages of the Liberty Plan • THE SAVINGS PART: • Owned by you • Used for eligible medical, pharmacy, dental & vision expenses • Helps pay deductible • Tax free contributions and spending • No “use it or lose it” –it will roll over and is portable (not like Flexible Spending Accounts – FSA) Very different from what we have today -Savings plan to help you with healthcare costs -Money is YOURS (even if you leave DriveTime) *Flexible Spending Accounts will not be available with the Liberty Plan

  21. DriveTime Savings Match Company Savings Match Savings Match: Dollar for dollar based on employee contributions up to $500 for Individual or $1,000 for Family • You contribute $500 Individual /$1000 Family • $19.23 / paycheck on a $500 contribution • $38.46 / paycheck on a $1,000 contribution • DriveTime will contribute $500 Individual / $1,000 Family maximum Match Advance: • 100% of company match contributed in January • Convenient sign up • Use your premium savings to put into your account • Add more into your savings account when you want Managing Your Deductible: • Match dollars • Your pre-tax contributions • Lower biweekly premiums to help

  22. DriveTime Savings Match Cont. • You put money into your savings account and we will match it! Up to $500 for individuals and $1000 for families. • If you put in $500 for the year and have equal amounts taken out of each paycheck, we will put in $500 to your account in January. All up front! Yours to keep. • Worried about the deductible? Take advantage of your lower premiums and our company savings match. Put the difference (and more) into your account and we will match it. (Up to $500 for individuals and $1000 for families).

  23. The Liberty Plan 1 2 3 Insurance Savings Account Tools BOTTOM LINE INSURANCE: You will have the SAME medical coverage SAVINGS: You will have pre-tax way to save money in a personal savings account TOOLS: You will have options to help you with your healthcare

  24. How will you help me? There are many tools to help you with your healthcare questions…

  25. Tools for YOU • Health Advocacy – • Service where you can contact them for help with any claims or billing questions. They can talk with you about an upcoming medical procedure. • WhiteGlove (AZ & TX only) • Be seen by a Nurse Practitoner at work or home for many medical situations • Care Choices • Visit your doctor, use WhiteGlove, go to urgent care, the local Minute Clinic or the ER – you choose what’s best for you. • United HealthCare website: www.myuhc.com • Educational materials, webinars and videos • Personal Wellness Coaches • NurseLine – 24-hour assistance for your healthcare questions • Find a local Doctor • Treatment cost estimators • Healthy Discounts • Preventative Care • Free for you and your dependents • Health Risk Assessment • All employees who wish to have medical coverage will need to complete a confidential HRA; be aware of and manage your health risks! • Well Call • Our new Wellness Program provider, coming in October 2011 • Prescription Choices • Generic vs. Brand (ie, $4 prescriptions at Wal-Mart) • Mail Order • Free preventative medications

  26. Liberty, You and DriveTime - How We Are Partnering Together • Lower Premiums • Company match • New tools • New Health Vendors: • Health Advocates • New Wellness Vendor • Preventative Care • Savings tool • You make informed health and healthcare choices improving your health and lowering your costs and ours • Employee Focused Process

  27. Liberty, You and DriveTime - How We Are Partnering Together. • Our Vision? • A cutting edge program of how together we manage our health and healthcare costs. • Partnering to improve your health, tools to make better choices, savings matches to help with costs, premier services, UHC negotiated discounts – all breaking the non-stop upward spiral of healthcare costs and premiums. • As we learn more, our emphasis will be on investing in our employees who have made good health and healthcare choices with lower premiums and higher savings matches!

  28. Best Case Scenario for ME • I pay my lower monthly premium • I contribute at least the premium savings into my Savings Account • I receive the company match up front • I have funds in my Savings Account for healthcare expenses • I ensure in 2011 that I take care of any current medical issues • I manage my health and use of healthcare in 2012 • I have no or low healthcare costs in 2012 • I start in 2013 with carry-over $$ in my savings account!

  29. Best Case Scenario for ME • A great opportunity to put away some money in 2012 for 2013 and beyond. We’re told 80% or more of the people in similar programs carry money over to the next year. But you could also be in the 20%…it could also cost more as well. That could be you. But, if something unexpected occurs it could also cost more as well. And, if you have costs, you may have to pay more out of pocket quicker than under the Traditional Plan. • We want you to carefully consider your choice and make an informed decision. • Use all of our tools to make the best choice for you!

  30. Would you like to see examples? Visit the Benefits Website at www.drivetimebenefits.com

  31. Helping you navigate through your medical benefits - How will DriveTime help ME? Your Liberty Plan

  32. Roadmap to Driving Your Health What can I do before January 1, 2012? • Get familiar with all of the “tools” available to you • Review with your doctor how you can move into a better wellness tier to improve your health and your savings! • Use your 2011 benefits to set up your 2012 experience • Visit the Benefits website at www.drivetimebenefits.com and read about the Liberty Plan

  33. Break the Cycle x Liberty= Affordable healthcare for years to come 20 19 18 17 16 15 14 13 Healthcare cost in Millions

  34. Break the Cycle Cont. • With spiraling healthcare costs, we can’t keep doing the same thing and continue to offer you affordable healthcare in the years ahead. Something must change! • Under Liberty we control 2 of the 3 primary drivers of these costs – our health and our healthcare. • Liberty creates the opportunity for us to partner together to break this cycle. Liberty provides a full array of discounted services through UHC as well as tools to help you with your health and your healthcare choices. Together, we get healthier and drive down costs.

  35. Questions? Thank you!

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