It’s a different time ……….

1. It’s a different time………. Benefit Renewal 2010

2. A Special Thank You to the Compensation Committee • Jennifer Gronros • Janet LaFlamme • Tom Novak • Beth Richardson • Twila Weiszbrod • Bill Yates • Phil Yauch

3. Why is it a different time?

4. Compensation Dollars Salary Benefits Medical Dental Pension Disability Life Workers’ Compensation Social Security Medicare Unemployment Tuition • Salary

5. Compensation Dollars Salary Benefits Medical Dental Pension Disability Life Workers’ Compensation Social Security Medicare Unemployment Tuition • Salary

6. Compensation Dollars Salary Benefits Medical Dental Pension Disability Life Workers’ Compensation Social Security Medicare Unemployment Tuition • Salary

7. Salary Benefits Medical Dental Pension Disability Life Workers’ Compensation Social Security Medicare Unemployment Tuition • Salary

8. Medical Cost • 85% of costs = Claims • Medical Inflation • Healthcare 13.8% • Pharmacy 15.2% • 2009 SJC Inflation 24.1%

9. Effects of Medical Inflation 2009 SJC Claims Cost: $1,556,750 Trended to 2010: $1,850,650 2010 Cost increase: $293,900

10. What does $293,900 mean? =‘s Two Percent Salary Increase =‘s Two Percent of Departmental Operational Budgets. =‘s 8 Fulltime Resident Students

11. We Need Your Help • Facts: • 88% of Medical Costs at SJC in 2009 – Claims • 70.1% of all Claims – Lifestyle Related* • To Control Costs, We must Control Claims! * DHHS Study

12. Solution Partner with You to Manage Claims. Build Wellness Incentives into Health Plans. Offer Different Style Health Plans (One Size Does Not Fit All). Offer Health Reimbursement/Spending Accounts to help with medical expenses.

13. Wellness Incentives • Health Assessment Mandatory • Preventive Physical $ 75 • Nonsmoking Affidavit $ 75 • Healthy Lifestyle Program $100 • Attend 2 Wellness Classes $ 50 • Total Wellness Incentive $300*** *** Deposited into Your Health Reimbursement/Saving Account

14. Why Wellness Incentives? • Preventive Health A Case Study • 950 EE College • 5 Cervical Cancer Claims (3 ½ Years) • 4 Diagnosed – Symptoms • 1 Diagnosed – Preventive Screening • 4 Average Cost = >$75,000 • 1 Average Cost = <$12,000

15. Different Style Health PlansEmployee Choice Health Plans Funding Health Reimbursement Plans HMO PPO High Deductible PPO Qualified High Deductible PPO Flexible Spending Account ( F S A ) Health Reimbursement Account ( H R A ) Health Savings Account (H S A)

16. Quick Plan Comparison

17. Health Reimbursement Accounts

18. Health Reimbursement Accounts

19. Medical Reimbursement Eligible Expenses Expenses not covered by health insurance: • Co-pays • Office visits • Pharmacy • Deductibles • First dollar expenses prior to health insurance • Co-insurance • % of health expense that is your responsibility Examples of expenses covered Contact lenses and solution Dental expenses Orthodontics LASIK surgery X-rays Lab fees Immunizations Mileage related to eligible medical appointment Over-the –counter allergy medicines, antacids, bandages, cold/flu medicine, reading glasses, rubbing alcohol, nasal spray, eye drops . . . . . . . . . .

20. Tax Savings FSAs, HRAs, HSAs $520 to spend costs you $396.76 because you save $123.24 I n taxes

21. Benefit Renewal Website http://www.sjcme.edu/hr/Benefits2010.htm

22. Ending on A Positive Note • Dental rates and plans are remaining unchanged from 2009 • Life Insurance rates are remaining unchanged.

23. Ending of VERY POSTIVE NOTE • Premium Holiday • December 31, 2009 • NO Health or Dental premiums will be deducted!!!