Seattle Pacific University 2013 Benefits

1. Seattle Pacific University2013 Benefits Pre Open Enrollment Informational Meetings

2. What’s New? 2

3. What’s New? • Cigna is our new Life and Disability carrier: • Offering a one-time opportunity to newly enroll or increase your supplemental life elections up to Guarantee Issue without medical history. • Cigna becomes the new PPO medical carrier effective July 1 • Medical Plan 1 will cease to be offered ($100 Deductible) • Two new Medical Plans will be offered: • $500 Cigna Open Access Plus PPO Plan with 10% Coinsurance (now administered by Cigna) • $2,000 ($4,000 Family) Qualified High Deductible Health Plan with 10% coinsurance (now administered by Cigna) • Both plan deductibles will re-set 7/1/13 and run through 6/30/14 • Last quarter (April – June) of incurred deductible will carry over to PPO plan only

4. What’s New? • Introducing several changes to the monthly premiums you pay for the medical plans: • Cigna “Open Access Plus” PPO PlanCigna “Open Access Plus” HSA • Employee                            $100                                                            $-0- • EE & Spouse                       $474                                                             $296 • EE & Children                     $266                                                             $97 • EE & Family                         $680                                                            $493 4

5. Transition to Cigna Medical 5

6. Find a Doctor 1. Go to www.cigna.com 2. Click “Find a Doctor” 3. Select Open Access Plus 4. Select Search Type (e.g. Specialty, Name, Type, Place) 5. Enter your zip code then click “Start” 6. Select additional criteria you would like to use in your search for a provider (e.g., accepting new patients, male/ female, additional languages) 6

7. Find a Doctor 7

8. Find a Doctor 8

9. Find a Doctor 9

10. Find a Doctor 10

11. Find a Doctor 11

12. Sample ID Card • Expect ID Delivery through the mail mid to late June for all members enrolled 12

13. Register with mycigna.com Once a member identification # has been assigned to you, please visit https://my.cigna.com/web/public/guest to register. Order ID cards, print temporary verification of coverage Order and refill prescriptions View your benefits, claims, download EOB’s View quality of hospitals/providers Treatment cost calculator Health & symptom checker, medical library 13

14. Prescriptions If you are taking any medication, make sure you have enough on supply during this transition Consider filling your prescription just before 6/30/13 Consider mail-order service for convenience and receive a 90-day supply at lower copays for the Cigna Open Access Plus PPO If you are currently using Premera’s mail-order program, you will need to transfer your prescription to Cigna by filling out a form on cigna.com Go to Cigna’s website at www.cigna.com At the bottom under “I want to” Select “Find a form” 14

15. Prescriptions Verify that your prescription is in Cigna’s formulary: Go to Cigna’s website at www.cigna.com At the bottom under “I want to” Select “View drug lists” Enter a drug name Select Go (note, you have 3 tiers in your plan) If you elect the High Deductible Health plan, there are some medications that are available at no cost to you Go to Cigna’s website at www.cigna.com At the bottom under “I want to” Select “View drug lists” Select “No cost preventive medications” 15

16. Benefits Overview

17. Common Terms • Premium: A per pay period cost that is deducted from your paycheck to provide you access to benefits. • Copay: Flat amount paid per visit or prescription. • Deductible: Annual amount paid for services prior to receiving coinsurance benefit. • Coinsurance: A method of cost-sharing that requires the employee to pay a stated percentage of all remaining medical expenses after the deductible has been paid. • Out-of-Pocket maximum: Once an employee has reached this annual amount, any further eligible costs for the plan year are covered 100% by the plan (excludes copays). 17

18. HSA vs. PPO Comparison

19. $500 PPO Health Plan • . Preventive covered 100% Plan pays 100% when reach Out-of-pocket Max. $ Pharmacy $10 $25 $45 Co-Insurance 10% -------$500 Deductible------ ($1500 for family) You pay most medical expenses.

20. High Deductible Health Plan • . Preventive covered 100% Plan pays 100% Out-of-pocket Max. $ Co-Insurance 10% ------$2000 Deductible----- ($4000 for family) You pay directly for medical expenses including pharmacy

21. High Deductible with HSA • . Preventive covered 100% Plan pays 100% Out-of-pocket Max. $ HSA Account SPU Contributes $1,008 + $900 ($2,016 + $1,800 for family) You contribute up to IRS limit (optional) Co-Insurance 10% ------$2000 Deductible----- ($4000 for family) You pay directly for medical expenses including pharmacy

22. How does a Health Savings Account (HSA) Work? A health savings account (HSA) is a tax-advantaged savings account, which is only offered to people who are covered under a qualified high-deductible health plan (HDHP). High deductible, but lowest monthly premiums Medical and prescription drug services are subject to plan deductible Deductible is based on enrollment in plan Individually owned savings account and is portable Unlimited rollover of unused dollars Eligible expenses: all Section 213(d) expenses (including: deductible, co-insurance, prescribed medications, vision and dental expenses) Eligible dependent expenses are also allowable, regardless of if they are covered under the Cigna HDHP 22

23. HSA Overview • Notable Plan Design Differences from PPO plan: • If enrolled as a family, you must reach family deductible for coinsurance to apply. It is not an individual deductible up to family maximum • All services, except preventive care, are subject to deductible • Prescription drug is subject to deductible • IRS rules may impact you; to enroll, you cannot be… • Enrolled in other health coverage unless QHDHP (through Spouse) • Enrolled in Medicare • Claimed on another’s tax return as their dependant • Enrolled in a health care FSA, including through your spouse

24. Out-of-Pocket Comparison: Low Utilizer Employee Only 24 Assumptions: Members received services from an in-network provider, and prescriptions were provided at an in-network pharmacy Estimated total costs for each service listed above are based on the zip code 98101, and are used for illustration purposes only. Actual costs may vary

25. Out-of-Pocket Comparison: High Utilizer Employee Only 25

26. Out-of-Pocket Comparison: High Utilizer Employee Only Assumptions: Members received services from an in-network provider, and prescriptions were provided at an in-network pharmacy Estimated total costs for each service listed above are based on the zip code 98101, and are used for illustration purposes only. Actual costs may vary 26

27. Out-of-Pocket Comparison: Medium Utilizer Employee Children 27 Assumptions: Members received services from an in-network provider, and prescriptions were provided at an in-network pharmacy Estimated total costs for each service listed above are based on the zip code 98101, and are used for illustration purposes only. Actual costs may vary

28. Out-of-Pocket Comparison: High Utilizer Employee Family 28

29. Out-of-Pocket Comparison: High Utilizer Employee Family Assumptions: Members received services from an in-network provider, and prescriptions were provided at an in-network pharmacy Estimated total costs for each service listed above are based on the zip code 98101, and are used for illustration purposes only. Actual costs may vary 29

30. Maximum Liability (EXAMPLE ONLY)Employee only Please note: Do the math examples and maximum liability exhibit shown does not take into consider federal tax savings that an employee may achieve through their own HSA contributions.

31. Maximum Liability (EXAMPLE ONLY)Employee + Spouse Example for PPO – maximum liability is based on employee + spouse only. Please note: Do the math examples and maximum liability exhibit shown does not take into consider federal tax savings that an employee may achieve through their own HSA contributions. 31

32. Maximum Liability (EXAMPLE ONLY)Employee + Child(ren) Example for PPO – maximum liability is based on employee + children with 3+ members. Please note: Do the math examples and maximum liability exhibit shown does not take into consider federal tax savings that an employee may achieve through their own HSA contributions. 32

33. Maximum Liability (EXAMPLE ONLY)Employee + Family Example for PPO – maximum liability is based on a family of 3+ members. Please note: Do the math examples and maximum liability exhibit shown does not take into consider federal tax savings that an employee may achieve through their own HSA contributions.

34. HSA Overview • Health Savings are truly the “Triple Tax Play” • Tax-Deductible Contributions • Tax-Free Withdrawals • Tax-Deferred Growth 2013 Health Savings Accounts (HSA) Contribution Limits (employee and employer contributions combined): Additional $1,000 catch-up contribution for those over the age of 55.

35. Make Informed Decisions We want to encourage you to choose the plan that fits you and your family Consider your needs: Review claims from prior year(s) Estimate upcoming expenses Look at your total benefit costs: Copays, coinsurance, deductibles, out-of-pocket max Include annual premiums you are paying through your paycheck Understand tax benefits of the HSA and FSA 35

36. Find the Plan That’s Right for You In April, Seattle Pacific University will provide you with an open enrollment ID and password to mycignaplans.com Use this as a tool to assist in your decision between the two medical plans that are offered Use this as a tool to assist with FSA or HSA additional employee contributions This tool will calculate Monthly employee paid premium depending on tier and plan selected Estimated medical cost based on selected family information Employer contribution into the Health Savings Account 36

37. myCignaplans.com Username: SPU2013 Password: cigna Log in with the provided user name and password 37

38. Welcome Page – Plan Costs Cigna also provides you with tools to compare the cost of each Cigna medical plan your employer offers. Click on “Compare Medical Plan Costs” to get started. 38

39. Compare Medical Plan Costs Click on “View Your Plan Options.” 39

40. Compare Medical Plan Costs If you can, update your conditions, visits and medications you’re currently taking. If you don’t want to enter that information, that’s ok too. The comparison tool lets you choose to use national averages to estimate your costs. If you’re only looking to compare the cost of coverage for just you, then click on “Continue to Uncovered Costs.” If you need to add information about your family, click on the plus sign to add a family member. 40

41. Compare Medical Plan Costs You can see how much the plan premium will be, as well as what your employer will be contributing, and the recommended amount you should contribute for the year. For all plans selected, based upon the info you provided, you can compare your total estimated savings. 41

42. Prescriptions You can also compare the cost of your prescription drugs under each Cigna plan that your employer offers. Click on “Compare Drug Costs” to get started. 42

43. Compare Rx Costs Or by Search by medication name. Then, select “Next step”. 43

44. Compare Rx Costs This column shows you the cost after any plan deductibles are met, if applicable. Other drugs in the same medication class are also listed to show you how much you can save if you select a generic drug. You can also click on the check boxes to compare up to 4 drugs side by side. 44

45. Compare Rx Costs You can select which plan you would like to see the drug costs for by clicking on the drop down box. You can compare the drugs you selected by Type, Retail vs. Home Delivery Cost, and Indications. You can also click on the plus sign next to Contraindications, Side Effects and Interactions for more details. 45

46. OPEN YOUR HSA BANK ACCOUNT When you’re ready to open your HSA bank account, click on either link, and follow the simple instructions. 46

47. HSA CALCULATOR To get a better idea of how much you can save with a Cigna Choice Fund HSA, click on the link to the calculator. 47

48. OTHER RESOURCES Additional resources are available to help you, such as the Health Care Professional Directory, a Glossary of Terms and a list of Prescription Drugs. 48

49. Flexible Spending Accounts Flexible Spending Accounts are available for PPO Plan Only Health Care Contribute up to $2,500 per calendar year Use for copays, deductible, coinsurance, prescribed over-the-counter medication, dental or vision expense for yourself and your tax dependents Grace period claims are limited to dental and vision only Dependent Care Contribute up to $5,000 per calendar year ($2,500 if married and filing separately) Daycare centers, in-home child care and before/after school care 49

50. HSA versus FSA 50