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Wisdom at Work

Wisdom at Work. Welcome. Full-time Employee Benefits Webinar November 2010. Arrow Annual Enrollment. What will we review during this webinar – Review Basic Life and Voluntary Life Benefits with Lincoln Financial Group Review Healthcare Reform Changes impacting Medical benefits

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Wisdom at Work

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  1. Wisdom at Work

  2. Welcome Full-time Employee Benefits Webinar November 2010

  3. Arrow Annual Enrollment What will we review during this webinar – • Review Basic Life and Voluntary Life Benefits with Lincoln Financial Group • Review Healthcare Reform Changes impacting Medical benefits • Review Medical Benefits with Principal Financial Group • Review Voluntary Dental Benefits with UCCI • Review Voluntary Vision Benefits with Eye Med • Review of Flexible Spending Changes • Introduction of Online Enrollment System • Review Voluntary Cancer, Accident, Hospital and Short Term Disability

  4. Basic Life and AD&D - LFG Employee – Paid by Employer Current Life Benefit: $15,000 Current AD&D* Benefit: $15,000 *Accidental Death and Dismemberment

  5. Voluntary Term Life/AD&D- LFG(Employee Paid) Employee Coverage Increments: $10,000 Maximum: Lesser of 4X annual earnings or $500,000 Guarantee Issue: Less than 70 - $100,000; Over 70 - $20,000 Dependent Coverage Spouse(Employee participation required) Increments: $5,000 Maximum: 50% of employee amount up to $250,000 Guarantee Issue: Less than 60 - $30,000: Over 60 – No GI Child(ren)(Employee participation required) Increments: $2,000 (beyond 6 months) Maximum: $1,000 (Birth to 6 months) $10,000 (6 months to 19 years (25 if FT Student)) Guarantee Issue: $10,000

  6. Voluntary Life Benefit • This is your Annual Enrollment opportunity to make changes to your life insurance coverage amount, or request to enroll for coverage under the plan. • This is NOT an open enrollment for life insurance. If you did not enroll when you were initially eligible, you may request enrollment now, but your request will be subject to Evidence of Insurability.

  7. In 2010, the law prohibits insurers from refusing to cover children or dropping coverage of children under the age of 19 who have pre-existing conditions. – Principal is already in compliance with this requirement. By 2014, no one can be denied coverage or have it rescinded because of a pre-existing condition. Allows your adult children to stay on your health plan until the age of 26.* *This provision will begin January 1, 2011 for Arrow’s plan. “Fast Facts” About the New Law

  8. Medical Spending Accounts (FSA/HSA): Effective January 1, 2011, over-the-counter (OTC) medicines and drugs will no longer be eligible under FSA’s/HSA’s unless you have a prescription from a licensed health care professional. What Other Changes Should I Know About?

  9. Medical Benefits Principal Financial Group – Open/Annual Enrollment Elections take effect January 1, 2011 • Same Plan options as introduced September 1, 2010 • Base Plan • formerly Silver High Deductible Health Plan (HDHP) • Buy-Up Plan • formerly Silver PPO Minor Adjustments to your Per Pay Period deductions Please refer to the rate sheets in your packets.

  10. Base Plan Medical Benefits at a Glance (HDHP) In-network calendar year deductible • $5,000 Individual $10,000 Family Elected Deductible • $2,500 Individual $5,000 Family Out-of-network calendar year deductible • $10,000 Individual $20,000 Family Co-Insurance • After deductible, plan pays 80% for most services in-network. • After deductible, plan pays 60% for most services out-of-network. Maximum out-of-pocket per calendar year • $7,000 Individual $14,000 Family (In-network) • $15,000 Individual $30,000 Family (Out-of-Network) *** Please refer to attachment Benefits at a Glance – Base Plan ***

  11. Buy-up Plan Medical Benefits at a Glance (PPO) In-network calendar year deductible • $5,000 Individual $10,000 Family Elected Deductible • $1,500 Individual $3,000 Family Out-of-network calendar year deductible • $10,000 Individual $20,000 Family Co-pays - $30 Physician Office Visit Co-pay for In-network provider Co-Insurance • After deductible, plan pays 80% for most services in-network. • After deductible, plan pays 60% for most services out-of-network. Maximum out-of-pocket per calendar year • $7,000 Individual $14,000 Family (In-network) • $15,000 Individual $30,000 Family (Out-of-Network) *** Please refer to attachment Benefits at a Glance – Buy-Up Plan ***

  12. Base Plan & Buy-Up Plan Updates Due to Healthcare Reform • Copays for Routine & Well Child Visits removed from Buy-Up Plan • Annual and Lifetime Dollar Maximums removed from Base and Buy-Up Plan • $5,000,000 overall lifetime maximum will be Unlimited • Calendar Year Maximum for Durable Medical Equipment removed • Calendar Year Maximum for Speech, Physical , and Occupational Therapy removed • Calendar Year Maximum for Outpatient Back, Neck and Spine services removed

  13. Your Medical PPO Network for In-Network Services For a General Physician and Specialist Search in Your Area • Visit www.principal.com • Provider search link in left navigation *** Please refer to attachment Your Source for Quality, Convenient, Cost-Effective Care ***

  14. Out-of-Area Medical PPO Network for In-Network Benefits PHCS Healthy Directions • Purpose: To provide quality health care when you’re outside of your primary network service area • Students attending school outside the network service area • Frequent travelers • First contact your local/regional PPO just in case your PPO has a provider in the area. If not, utilize the PHCS Healthy Directions Program • To locate a PHCS Healthy Directions provider, call 1.800.241.6350 or visit www.principal.com *** Please refer to attachment Quality Care While Away From Home ***

  15. Prescription Drug Coverage Administered in conjunction with CVS Caremark • Share your ID card with your pharmacy • Find participating pharmacies at www.caremark.com • Participants will receive a CVS Caremark Extracare Health Card • entitles user to 20% off CVS store brand health related items Retail CostRetail 90-day supply Tier 1: $15 $45 Tier 2: $35 $105 Tier 3: $50 $150 Tier 4: $100 Prescription copays - do not satisfy your medical deductible or out-of-pocket expense. For some drugs, you can get a 90-day supply for 3 copayments

  16. Generic Prescription Drugs • A generic drug is the chemical equivalent of a brand-name drug • Cost is about 50% less • Dispenses in same dosage and strength as a preferred brand • Taken the same way

  17. Lab Card Program • A service of Quest Diagnostics • No cost to you! • 100% coverage for covered laboratory tests • Present your Lab Card at the doctor’s office and request your specimens be sent to a participating Quest Diagnostics lab • Your doctor’s staff collects specimens and calls Quest Diagnostics for pickup: LabOne at 800.646.7788 or www.labcard.com *** Please refer to attachments LabCard Questions and Answers and Solid Savings On Lab Work ***

  18. Principal HealthyConnections • www.principal.com/health • *** Please refer to attachment Catering to Your Health and Benefit Needs ***

  19. Vision Services Discount • Vision Services • National Lasik Network • VSP network • *** Please refer to attachment Vision Care Discounts and Savings ***

  20. Questions? • Claim Inquiries: • 1.800.331.3287; 8am-5pm EST, Mon-Fri • Information will also be on the back of your ID card • Hospital Pre-Admission and Benefit Advice/Verification or General Benefit Questions: • 1.800.533.5044; 7am-8pm CST, Mon-Fri • Information will also be on the back of your ID card • Prescription Drugs (CVS Caremark): 1.877.683.6838

  21. Online Access • Requires an email address • Obtain a secure username & password for access • Adult member has visibility of underage dependents • Call Principal Life toll-free number 800.986.3343, 7AM-7PM, M-F, CST or… • Go to www.principal.com and click Login in the top left • Select Establish your new username and password and follow the instructions • *** Please refer to attachment eService • Makes Finding Benefit Information Easier! ***

  22. Deductible Reimbursement Program Base Plan $5,000 Deductible Buy-Up Plan $5,000 Deductible Arrow DRP funding up to $3500 ind. ($7000 family) Arrow DRP funding up to $2500 ind. ($5000 family) Employee funds $2500 ind. ($5000 family) Employee funds $1500 ind. ($3000 family)

  23. How Claims are Processed through the DRP Principal Show your Principal ID card to your Provider. 2 3 1 • Principal processes claims applying charges towards deductible. • Individual: $5,000 • Family: $10,000 4 8 Principal EOB Statement Principal forwards claims to Mid-American Benefits. 5 Explanation of Benefits (EOB) sent to both Physician and Member. Processes additional deductible under the DRP beginning with dollar: Base: Individual: $2,501 to $5,000 Family: $5,001 to $10,000 Buy-Up: Individual $1501 to $5,000 Family: $3001 to $10,000 4 Explanation of Benefits (EOB) sent to both Physician and Member. 7 Mid-American Benefits processes DRP payment and forwards to the provider. 6

  24. Dental – UCCI

  25. Voluntary Vision Plan - EyeMed • Rates and Benefits Stay the same • $10 copay for Exam with Dilation (Every 12 months) • Contacts - $115 Allowance Conventional and Disposable • Frames - $100 Allowance (Every 24 Months) • Lense Allowances (Once every 12 Months): • $25 copay for Single Vision • $25 copay for Bifocal • $25 Copay for Trifocal • $25 Copay plus 20% off retail less $55 allowance for Standard Progressive Refer to more detailed Plan Summary “Online”

  26. Flexible Spending Accounts The open enrollment is for the plan year beginning January 1, 2011 and ending December 31, 2011 Eligible expenses must be incurred during the period of time shown above... General Health Care Spending • $5,000: Plan Year Contribution Maximum (Annual Election Available 1st day of plan year) Dependent Day Care Spending • $5,000: Plan Year Contribution Maximum (Funds are available as they are deposited into the account) You may contribute to either account or both of the spending accounts.

  27. Flexible Spending Accounts IMPORTANT FOR 2011 Your 2011 election will be for 12 months Your annual elections to each of the accounts will be divided over 24 pay periods. Healthcare Reform limits for OTC Drugs effective January 1, 2011. (More information can be found on the online Summary Section)

  28. Flexible Spending Account Facts A great place to start, co-pays that do not count towards deductible! Example of one prescription cost and savings for a year with an average of 25% tax savings $15.00 x 12 Mo. = $180.00 – 25% = $45.00 tax savings $35.00 x 12 Mo. = $420.00 – 25% = $106.00 tax savings $50.00 x 12 Mo. = $600.00 – 25% = $150.00 tax savings --$5,000 annual contribution maximum-- 15% Tax Bracket (avg. 22.65% tax savings) = $679.50 tax savings 27% Tax Bracket (avg. 34.65% tax savings) = $1,039.50 tax savings

  29. SPECIAL IRS PLAN RULES • Once you establish your plan year contribution, you may only change it if you experience a “life event” change such as; Marriage, Divorce, Birth and Death. • You may file plan year claims up to 90 days after the end of the plan year. • Any amount left in your flexible spending account at the end of the plan year will be forfeited to the plan. • You may enroll in this flexible benefits plan only once each plan year. • Even if you or other family members are covered under another health insurance plan, you can still participate in the flexible benefits plan.

  30. Reimbursement for Expenses • Paper Claims: • Complete claim form and submit to Mid-American Benefits, Inc. via mail or fax, (Please note this is a new administrator) • Include itemized statement or an Explanation of Benefits (EOB) statement showing your out-of-pocket share. (No Canceled Checks) • Dependent care (Signature, Social Security Number) • Claims are reimbursed semi-monthly

  31. KEY DATE: November 19, 2010! • All Employees must review and verify his or her name, address and dependent information on line by November 19, 2010 • Any changes in your benefit elections also need to be confirmed on line by November 19, 2010 www.buscoinc.com

  32. Thank you!

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