Palmer College of Chiropractic-Davenport 2009 Employee Benefit Meeting

1. Palmer College of Chiropractic-Davenport 2009 Employee Benefit Meeting

2. Presented by • Palmer Human Resources • Gallagher Benefit Services • UMR Account Management

3. The Current Benefits Marketplace What’s Happening to Health Care Costs? • Industry Wide Increases Average 10 – 12% • Employers struggle to balance increasing costs and maintain benefit levels Why are our Health Care costs increasing? • Medical and Rx Inflation • Aging Population • Consumer Demand • Technological Advances in Medical Treatment You can help lower these costs by practicing healthy lifestyle behaviors and by being a wise consumer!

4. Cost Projections 2008 - 2010 Palmer College Medical Projected Costs • 2008 $871.71 PEPM • 2009 $887.69 PEPM • 2010 $976.45 PEPM Palmer College Expected 2009 Medical Programs Cost: $4,857,439

5. Average Employee Contribution Comparison * Mercer 2007 Survey of Employer Sponsored Health Plans

6. 2009 Monthly Employee Contributions

7. Qualifying Events and Deadlines • Qualifying Events allow you to make changes to your health plan enrollment & flexible spending plans within 30 days of the event for the following reasons: • Legal Marital Change • Number of Dependents • Employment Status • Work Schedule (Reduction in hours) • Change in Eligibility of a Dependent • Loss of Health Plan Coverage of a dependent

8. 2009 Update • Life and Disability benefits will remain the same • Medical benefit plan design will remain the same • UMR - New third party administrator beginning January 1st • Medical • Prescription Drugs (Innoviant) • Dental • FSA • Care Management and Utilization Review • Change in provider network from Midlands Choice to UnitedHealthcare Options PPO • New network offers substantial savings with minimal disruption

9. Who Is UMR? • New Third Party Administrator – UMR for 2009 plan year • A UnitedHealthcare company • The largest third-party benefits administrator in the United States! • Just how large is UMR? • Employs nearly 4,000 associates • Services more than 1,260 customers and their 2.8 million members • Handles 4 million phone calls and processes more than 39 million claims a year

10. What Will UMR Do for You? Become your personal health plan advocate Arm you with information to make wise decisions You and your family Offer you options to meet your needs • Help you and your family live healthier lives

11. Information Around the Clock… • 24/7 interactive voice response • More claims and benefit information online at www.umr.com • UMR representatives availableMonday through Friday 7am – 9pm CST • Toll-free number:1-866-868-7241

12. About Your PPO NetworkUnited Healthcare Options PPO Advantages of UnitedHealthcare Options include: • Benefits applied the same across the country • Direct access to specialists-never need a referral • Freedom to make your own choices about which physicians to see You can access the most current PPO network provider listing by logging on www.umr.com, clicking on “Find a Provider” then under Network choose “UnitedHealthcare Options PPO” Provider participation status is also available by calling the toll-free number on the back of your ID card (1-866-868-7241).

13. Innoviant Pharmacy Benefits • More than 59,000 participating pharmacies • Customer Service Center toll-free number: 1-877-559-2955 • Customer Service Center: Available 24/day – 7 days/week • Web site: www.innoviant.com • Online preferred product listing and pharmacy network listing

14. Innoviant Rx - Mail Order • Mail order co-payments apply for a 90 day supply • Request your doctor to write a prescription for 90 days with 3 refills (this allows a prescription for 1 year). • Complete mail order registration form available by calling Innoviant customer service or visiting www.innoviant.com • Send in your prescription, mail order registration form and co-payment to Innoviant Pharmacy

15. Generic Utilization Preferred Products Clinical Programs Mail Order Wise Choice • Helps you identify and use the money saving options in your prescription benefits program • Call our Certified Pharmacy Technicians to set up a consultation at 877-809-6996

16. Member Information Center Everything you need…. WWW.UMR.COM

17. Flexible Spending Accounts • Flexible spending accounts • These accounts allow employees to pay for certain expenses—medical, dental, vision, or dependent care expenses—with pretax dollars. • Annual elections • Before the start of this plan year, employees must choose the amount of money they wish to set aside on a pre-tax basis for eligible expenses incurred between January 1 and December 31, 2009 (up to $5,000 for medical expenses and $5,000 for dependent care expenses). • New this year - Direct Deposit option • Refer to your handout or plan document for a list of eligible expenses (or view online at www.fhs.umr.com then click on “forms”)

18. How Does it Work? • Health Spending Account • Deposits (Reduction in Taxable Income) $1,000 • Federal Income Tax Savings* $ 200 • FICA Savings** $ 76 • Yearly Tax Savings, More Take-Home Pay $ 276 That is a 27.6% Savings! * Assumes Federal Income tax rate of 20% ** Includes Social Security tax rate of 6.25% and Medicare tax rate of 1.45%

19. Flexible Spending Accounts • Plan Carefully - Any unused balance at the end of the plan year is forfeited. • Employees can change benefit elections during the plan year ONLY under certain circumstances, such as a change in the employee's family or lifestyle event. • Fill out your election form by November 18, 2008 to participate.

20. Coordination of Benefits • Each year employees enrolled in family coverage will receive a form letter from UMR(the claims administrator) asking if the dependents are enrolled in other health insurance coverage. • Please be sure to complete this form, even if your dependents are not enrolled in any other insurance • If your dependents are enrolled in another health insurance plan, please provide all specifics requested and return the letter to UMR • Compliance with this request ensures that claim payments will not be delayed. * Student status verification is confirmed by URM twice annually

21. Retirement Plan • Increased IRS employee contribution limits effective January 1, 2009 • Under age 50 - $16,500 • Age 50 and over - $22,000 • Due to IRS regulations, Principal will be the only vendor for Employee 403(b) contributions Consider increasing your contribution if you are currently contributing. If you are not currently contributing, consider enrolling.

22. Medicare Part D For all Medicare Eligible Employees… • Each year Palmer distributes Part D Certificates of Creditable Coverage (COCC) to all employees, so those eligible to join Part D can do so without penalty. These certificates can be found in your packets. • Please note that if you drop Palmer’s Coverage you will not be able to re-enroll at a later date.

23. Transition Reminders • If you incur a claim before 12/31/08, you will receive an Explanation of Benefits (EOB) from the prior administrator - PBA • Any claim after 1/1/09 an EOB will come from the new administrator - UMR • Notify your Doctor and Pharmacy at your first visit after January 1 • Verify your providers are in network prior to your first visit by going to www.umr.com

24. Reminders • Forms to complete by November 18, 2008 • Flexible Spending enrollment/waiver form • Look for communication in early January on Palmer’s New Business Portal. This new tool will allow you to view your benefit deductions and pay stubs online for calendar year 2009. • To view your 2008 pay stubs or benefit deductions, visit the Ceridian website at http://sss2.ceridian.com/palmer • Keep Human Resources informed of any personal information changes to ensure accurate records.

25. Questions? Remember the Deadline for forms to be submitted to Human Resources is: November 18, 2008