U-M Benefits Orientation

U-M Benefits Orientation Life Insurance Expanded Long-Term Disability Group Legal Services Plan Miscellaneous Benefits Retirement Savings Plan Questions and Answers Introduction to U-M Benefits Health Plans Prescription Drug Plan Dental Plan Vision Plan Flexible Spending Accounts

U-M Benefits Introduction to U-M Benefits Eligibility Benefits Enrollment Enrollment Change in Status Open Enrollment Paying for Your Benefits Your Rights and Responsibilities

U-M Benefits Eligibility Employee Benefit-eligible graduate students Spouse Other qualified adult Dependent children Review the eligibility information on the Benefits Eligibility section on the Benefits Office website: benefits.umich.edu/eligibility

U-M Benefits Benefits Enrollment Self Service > Benefits Benefits Office website Plan Information Eligibility Information Forms Vendor Contact Information

U-M Benefits Enrollment Four times when you may be able to enroll in benefits: When you are a new hire When you are newly eligible As a result of a qualifying change in status During Open Enrollment – usually in the fall

U-M Benefits Change in Status Legal Marital Status Number of dependents Employment Status Residence or work site change (out of network area) Domestic relations court order

U-M Benefits Paying for Your Benefits Convenient payroll deductions When Deductions are taken: Bi-weekly Health Plan, Dental, Vision, Legal, Flexible Spending Accounts (first two paychecks of each month; 24 equal installments) Retirement Savings Plan (all pay periods) Monthly (all)

U-M Benefits Paying for Your Benefits Always Pre-Tax Health Plan Retirement Savings Plan Dental Flexible Spending Accounts Vision Always After-Tax Dependent Life Optional Life Insurance Long-Term Disability Legal Services

U-M Benefits Your Rights and Responsibilities HIPAA COBRA Check your deductions Keep your address current. Make updates online at: wolverineaccess.umich.edu Watch for communications from the university

Health Plans Introduction Six Coverage Levels Range of Coverage Options Traditional Fee-for-Service Plan Health Maintenance Organization (HMO) Managed Care Plan Preferred Provider Organization (PPO) Plan

Health Plans Value = Quality + Cost Cost information Benefits comparisons Make Your Choice No pre-existing clauses 30 days to choose 30 days to report a mid-year change in status

Health Plans Six Coverage Levels You only You + your Spouse or other qualified adult You + your Spouse or other qualified adult & Child or Children You + One Child You + Children No Coverage

Health Plans Traditional Fee-for-Service Plan Blue Cross Blue Shield Comprehensive Major Medical (CMM)

Health Plans Traditional Fee-for-Service Plan Coverage for diagnostic and treatment services Annual Deductible Co-insurance Annual Out-of-Pocket Limit

Health Plans Managed Care Plans and Health Maintenance Organization (HMO) U-M Premier Care (UMPC) GradCare – Benefit Eligible Students only Health Alliance Plan HMO (HAP)

Health Plans Managed Care Plans and Health Maintenance Organization (HMO) 100% coverage for eligible expenses Lower out-of-pocket costs for certain services No annual deductible or claim forms Co-pay may be required for some services

Health Plans Preferred Provider Organization (PPO) Blue Cross Blue Shield of Michigan Community Blue PPO (BCBSM PPO) Ability to choose any provider, in or out-of-network Lower out-of-pocket costs when you choose an in-network provider

Health Plans Which Plan Is Best For You? Use the information on the Benefits Office website at benefits.umich.edu/plans/medical/ to determine the best health plan for you and your family. • Health Plan Comparison Chart • Health Plan Navigator • Summary of Benefits and Coverage (SBC) Charts Choose a plan that best meets your and your family’s needs

Health Plans Important Materials Provider Directory On the Benefits Office website at: benefits.umich.edu/plans/medical/providers.html Plan Books and Forms On the Benefits Office website at: benefits.umich.edu/booksbenefits.umich.edu/forms

Prescription Drug Plan All participants who enroll in university health plans are automatically enrolled in the U-M Prescription Drug plan, which is administered by MedImpact Healthcare Systems, Inc. You will receive a separate MedImpact prescription drug ID card.

Prescription Drug Plan Three-tier co-pay plan: Tier 1/generic, $10 Tier 2/preferred, $20 Tier 3/brand-name non-preferred, $45

Prescription Drug Plan Up to 90-day supply available by mail order through NoviXus mail service at a significant savings over retail pharmacies. More information is available on the Benefits Office website at: benefits.umich.edu/plans/drugs

Dental Plan Administered by Delta Dental of Michigan Option 1 Option 2 Option 3 Orthodontic Services Compare Options and Rates University Contribution

Dental Plan Option 1 • Provides coverage in full for preventative services • Covers orthodontia for dependents under age 19 • Available at no cost to you and your eligible dependents

Dental Plan Option 2 • Provides coverage in full for preventative services • Covers orthodontia for dependents under age 19 • Requires an employee contribution

Dental Plan Option 3 • Provides coverage in full for preventative services • Covers orthodontia for dependents under age 19 • Highest benefits level • Requires greatest employee contribution

Dental Plan Orthodontic Services Covers services for eligible dependent children up to age 19 Adult orthodontics are not covered If newly enrolling for first time, Delta will pro-rate amount payable for children already in an orthodontic treatment plan

Delta Dental Network • You can choose any dentist you want • You will receive the greatest savings if you see a Delta PPO provider • You will still receive a savings if you see a Delta Premier provider • Delta PPO and Premier participating dentists agree not to bill the patient more than Delta’s approved amount

Dental Plan Compare Options and Rates Rates and a comparison chart are available on the Benefits Office website at: benefits.umich.edu/plans/dental

Vision Plan Features Administered by Davis Vision One eye exam and pair of eyeglasses per year Standard, soft, daily-wear, disposable contacts in lieu of eyeglasses Kellogg Eye Center is a participating provider

Vision Plan No card for Vision Plan Provider list available on the Davis Vision website at: www.davisvision.comClick Members, enter 2032 in the Control Code field, and then click Submit.

Benefits Rates • You can view benefits plan rates on Wolverine Access, or the Benefits Office website at benefits.umich.edu/neo/rates.html

Flexible Spending Accounts Administered by PayFlex/HealthHub • Two account types • Contribution Limits • Advantages • Savings example

Health Care FSA • Use to set aside pre-tax dollars for out-of-pocket health care expenses for you and your eligible dependents • Possible expenses can include Rx co-pays, contacts, doctor’s office co-pays, dental out-of-pocket expense, Lasik surgery

Dependent Care FSA • Use to set aside pre-tax dollars for out-of-pocket dependent day care expenses for your eligible dependents. • Possible expenses can include your child’s day care costs, after school latch-key programs, adult day care expenses, and summer day camps. • See the Benefits Office website for list of eligible dependents and expenses: benefits.umich.edu/plans/reimburse/dc2.html

Flexible Spending Accounts Contribution Limits Health Care Account $2,500 annual maximum $120 annual minimum Dependent Care Account $5,000 annual maximum; may be limited based on several factors $120 annual minimum

Flexible Spending Accounts Advantages Serves as budgeting tool Provides immediate tax savings Helps you get more for your money

Flexible Spending Accounts * Potential tax savings shown for demonstration only. Actual savings will vary based on your individual tax situation. Please consult a tax professional for more information.

Flexible Spending Accounts Keep In Mind • Estimate your annual expenses carefully • No mid-year contribution changes without a change in status • “Use it or lose it” feature • Through December 31 of the current calendar year • FSA enrollments do not carry over from year to year • A separate election must be made each year you wish to participate benefits.umich.edu/plans/reimburse

Life Insurance Administered by MetLife University Life $30,000 plan for eligible faculty and staff Covers you only and is paid by the university at no cost to you Automatically enrolled Must name beneficiaries

Life Insurance Optional Life Nine Coverage Options No coverage – unless you enroll $5,000 (minimal or no cost to you) $50,000 1 time salary to 6 times salary 30 days to enroll without a health statement Term Insurance Covers simple will preparation

Optional Life Insurance Plan Important Considerations No cash value or loan provision You need to enroll in Optional Life Coverage amounts and costs may increase when your salary increases (if tied to salary) or when you move to a higher age bracket

Optional Life Insurance Plan Designate Your Beneficiary Any person you wish May add or change at any time Make or change Life Insurance beneficiary designations on MetLife’s MyBenefits website: www.metlife.com/mybenefits

Optional Life Insurance Plan How to Calculate Your Life Insurance Cost Your monthly cost depends on the coverage you select, your age, your smoking status, and your salary. If you choose coverage based on your salary, the cost will increase when your salary increases. Your cost will increase when you move into the next higher age bracket. See the Benefits Office website to calculate your rate:benefits.umich.edu/plans/life/orates.html

Dependent Life Insurance For Spouse/OQA/Child Legally married spouse or other qualified adult Children Employee is always the beneficiary

Dependent Life Insurance Coverage Levels Spouse or other qualified adult $10,000 (short form health statement) $25,000 (short form health statement) $50,000 (long form health statement) Children $2,000 per child $5,000 per child One rate covers all eligible children

Dependent Life Insurance Considerations Term Life Coverage You are always the only beneficiary Cost of Coverage After-tax deductions

Expanded Long-Term Disability Administered by U-M • Coverage levels • Employee cost

Expanded Long-Term Disability Coverage Pays up to 65% of pre-disability base salary Pays the cost to continue your other benefits, including Health Plan, Dental Plan, Life Insurance, and Retirement Savings Plan contributions Coordinates with other programs such as Social Security disability income

Expanded Long-Term Disability Cost You pay full cost for first two years After two years, the university pays the cost for coverage up to $57,500 salary You can elect to pay for coverage on salary above $57,500

U-M Benefits Orientation