Know Your Benefits 2014-2015 Plan Year

1. Know Your Benefits2014-2015Plan Year

2. How did we get here? • April 2013 – Health Care Forum • May/June 2013 – Two All-Day Benefits Planning Meetings • July 2013 – RFP Preparation • Oct./Nov. 2013 – Request for Proposal • Nov 2013 – RFP Information Compiled by Hub International • Dec. 2013 – Faculty & Staff Survey • Dec. 2013/Feb. 2014 – Committee Review of Proposals • Six, four-hour meetings • Jan. 2014 – Final Vendor Presentations • Feb. 2014 – Vendor Recommendations to President’s Council • Feb 2014 – HR Matters sent to employees • April 2014 – Health Care Forum II

3. Employee Survey Results • Employee survey sought to discover the number one issue for employees in regards to our health plan. • Employees were asked to rank three criteria from lowest to highest priority. • Cost: total yearly out-of-pocket costs including monthly premiums, co-pays, and deductibles • Access: Ability to be seen by a member of the provider network in the nearby vicinity • Choice: Ability to visit your preferred hospital, clinic, or health professional • Survey collected 559 responses • 370 ranked cost as their highest priority (66%) • 141 ranked choice as their highest (25%) • 48 ranked access as their highest priority (9%)

4. Where are our employees?

5. Employee Access • Nationwide network, with in-network coverage outside of UT. • 85% of employees live in UT county • UMR covers 96% of UVU’s top 200 providers • Out-of-network coverage leased through First Health Network

6. Employee Choice • Two network offerings • United Healthcare Choice Plus and Options PPO • Choice Plus network mirrors our current network facilities with EMI • Intermountain Health Care Facilities • Options PPO covers IHC as well as the University of Utah Hospital and IASIS facilities • Jordan Valley, Davis Hospital, Pioneer Valley, and Salt Lake Regional • Mountain Star hospitals only offered as an out-of-network facility

7. Network Facilities

8. Employee Cost • No increase in premiums, deductibles, co-pays, or co-insurance coverage for 2014-15 plan year • Consumerism tools available through UMR • Healthcare Cost Estimator calculator • Teladoc • NurseLine • Maternity Management • Wellness • Disease and Case Management • Doc GPS app

9. Unbundled Plan Elements • Medical Claims Administration – UMR • Best overall savings. Limited disruption for employees • Dental Claims Administration – EMI • Deepest savings on network claims. Best overall savings. • No disruption to employees. • Vision – United Healthcare • Employee paid benefit • Co-pays for glasses and contacts vs. current plan with reimbursement limits. • Lower premiums than current plan offerings, with richer benefit for employees. • Pharmacy Benefit Manager – Envision RX • Best overall savings. • Large network offering (Walgreens, Walmart, Smiths, Costco, and more). • Specialized care covering 7 million lives.

10. What Does This Mean in Terms of Monthly Cost?

11. Medical Plan Designs for UVU 2014-2015

12. Medical Plan Designs for UVU 2014-2015

13. EnvisionRx Options • Employees can still receive medications at a pharmacy counter • Wide coverage throughout the state from large chain stores to smaller local pharmacies • Provides deepest discount on Rx • Mail order available through online account • Diabetic Testing Supplies now available at pharmacy

14. Dental Administration • Plan will remain with EMI Health • No disruption for employees • Same premiums and plan design as 2013 -14 • $50 deductible per person up to $150 per family • $1500 calendar year limit per person

15. United Healthcare Vision • New benefit plan • Lower premiums with richer benefit! • $30 copay for materials (glasses, contacts, etc.) • $100 frame benefit • Lenses, frames, and contacts (in lieu of glasses) every 24 months

16. WageWorks • Will provide UVU administration for: • Flexible Spending Account (FSA) • Health Savings Account (HSA) • COBRA • EZ receipts app and better tools for employees • Smart card for auto-adjudication of claims

17. What is a High Deductible Health Plan (HDHP) • A medical plan that must meet certain IRS annual deductible minimums and maximum out-of-pocket limits. • All covered benefits, with the exception of preventive benefits, apply to the plan deductible, including prescriptions drugs. • Plan covers either Employee Only coverage or Family coverage. • Family coverage - one family member or a combination of all family members’ claims must meet the deductible amount before the plan will pay towards covered health care services.

18. What is a Health Savings Account (HSA) • An employee owned tax-free savings account (triple tax savings). • Payroll contributions to account are on a pre-tax basis and reduce employee’s annual taxable income. • Tax-free withdrawals if used to help pay for qualified out-of-pocket medical, dental, and vision expenses, such as co-pays, deductibles, and coinsurance. • Earns interest tax-free. • Investment threshold of $1,000 with BNY Mellon

19. What is a Health Savings Account (HSA) Cont. • To be eligible for an HSA, an individual has to: • Be covered by a Qualified *HDHP • Not covered by a “*traditional” health insurance plan • Not enrolled in Medicare nor Tricare • Not claimed as a dependent on someone else’s tax return *Traditional plan – Insurance plan helps pay from the first day *HDHP plan – Deductible must be met before insurance payments begin

20. Employee Owns and Controls the HSA • Since the account is owned by the employee, not the employer, the employee decides: • Whether he or she will contribute and how much to contribute; • How much to use for qualified expenses; • Which expenses to pay for from the account; • Whether to pay from the account or save for future use; • Which company will hold the account; • What type of investments to grow the account (when qualified). • Employer cannot restrict use of HSA distributions.

21. Benefits of an HSA • No “use it or lose it” rules like Flexible Spending Accounts. • All amounts are fully vested. • Unspent balance in account remains in account until spent (rollover). • Encourages consumerism • Encourages account holders to spend their funds more wisely. • Encourages account holders to shop around for the best value for their health care dollars. • Accounts can grow through investment earnings. • Same investment options and investment limitations as IRAs. • Same restrictions on self-dealing as with IRAs.

22. HSA Contribution Rules • Contribution made by the employee reduces their annual taxable income and the contribution is not taxable to the HSA. • Contributions from all sources count toward the annual contribution limit. The contribution limits are: 2014 - $3,300 employee only: $6,550 family. • Catch-up $1,000 – age 55 by end of tax year. • Employee can make a one-time transfer from their IRA to an HSA (subject to annual contribution limits).

23. HSA Contribution Rules • Elections for payroll contributions run through a cafeteria plan, unlike Flexible Spending Accounts, employee can change their election amount on a month-by-month basis. • Distribution is tax-free if taken for qualified expenses incurred on or after the date the HSA was established.

24. HSA Contribution Rules • Distributions can be taken for the employee, the spouse of the employee, and generally any tax dependent of the employee. • Distributions can be taken for non-qualified expenses. Distribution will be subject to: • Income tax; and • 20% additional tax penalty.

25. HSA v. FSA. What’s the difference?

26. What Can’t I Use My HSA/FSA For? • Ineligible Medical Expenses Include: • Insurance premiums (other than the ones listed under the qualified medical expenses) • Over-the-counter drugs (unless a prescription is obtained from a physician or if the drug is insulin) • Cosmetic surgery • Expenses covered by another insurance plan • General health items such as tissues, toiletries, hand sanitizer, etc

27. HSA Transition • UVU will organize a mass transfer of accounts • Account holders have three options: • Spend down funds to $0 • Transfer money from Optum Bank to BNY Mellon account • Keep both accounts open • Account holders will be charged a fee for Optum Bank/Tango account • $4 to keep Tango functionality • $1 for Optum Bank

28. FSA Transition • For employees who had an FSA during 2013-14 • Grace period in effect until 09/15/2014 • Will be administered by National Benefit Service • Debit cards will not work after 06/30/2014 • Employees wishing to open an HSA with a remaining FSA balance as of 7/1/14 will have to wait until 10/1/14 to contribute to an HSA

29. Benefit Online Enrollment System • All enrollments entered online through UVLINK • No paper forms for Medical, Dental, Vision, and Flex-Spending • Remember to check coverage boxes for dependents • Verify coverage level

30. Double Coverage? • Will need to fill out UMR survey and inform them of other coverage • All employees must complete, even if they have no other insurance plans • Form can be completed by: • Returning form included in mailer with ID cards • Calling UMR and verifying coverage • Logging into UMR member portal and entering other coverage information

31. Training Opportunities • UMR Medical Benefit Training: Facilitated by UMR • Wednesday, April 23, 2014, 11:00am – 12:00 pm, SC 213 AB • Wednesday, May 14, 2014, 1:00 pm – 2:00 pm, BA 207 (Webinar) • WageWorks HSA and FSA Training: Facilitated by WageWorks • Wednesday, April 23, 2014, 1:00 pm – 2:00 pm, SC 213 AB • Tuesday, April 29, 3014, 1:00 pm – 2:00 pm, BA 207 (Webinar) • Tuesday, May 6, 2014, 11:00 am – 12:00 pm. SB 134 • EnvisionRx Pharmacy Benefit Training: Facilitated by EnvisionRx • Wednesday, April 23, 2014, 12:00 pm – 1:00 pm, SC 213 AB • Tuesday, May 13, 2014, 2:00 pm – 3:00 pm, SB 134 • Benefit Fair trainings are available on the Open Enrollment site.

32. Items to Remember • Supplemental Benefit Options • Minnesota Life • AFLAC • Hyatt Legal • Met-Life • MedAmerica • Re-enroll in FSA • Must make new election each plan year • Open Enrollment • April 21 – May 16

33. Thank you and questions!