School Board of Highlands County -Insurance Update for 2013-

1. School Board of Highlands County-Insurance Update for 2013-

2. Review - Components of HRA Health Plan Step 1 Base Health Reimbursement Arrangement (HRA) Fund* SBHC Single $1,000 Family $2,000 HRA Plan • IMPORTANT NOTES: • HRA fund available for Medical Claims and Pharmacy Claims. • Unused funds will ROLLOVER from previous year. • Out-of-Pocket Maximum includes Deductible Step 1 + Step 2 Deductible Single $2,000 Family $4,000 Step 2 Your Contribution Single $1,000 Family $2,000 (your responsibility) Preventive Care covered 100% (In-Network Only) Step 3 Health Plan In-Network CIGNA pays 80% You pay 20% Step 4 Out-of-Pocket Maximum Single $5,000 Family $10,000 (100% medical coverage)

3. CIGNA Health Plan Improvements/Changes for the 2013 Plan Year: • The HRA fund increases: • From $750 to $1,000 for Single coverage • From $1,500 to $2,000 for Family coverage • The deductible reduces: • From $2,500 to $2,000 for Single coverage • From $5,000 to $4,000 for Family coverage • The current Buy-Up plan will discontinue on 12/31/12

4. HRA Fund & Deductibles Compared Current Year 2013 Renewal Deductible -$2,000 Renewal HRA Fund Pays -$1,000 Deductible -$2,500 HRA Fund Pays -$750 Single Plan Renewal Deductible -$4,000 Renewal HRA Fund Pays -$2,000 Deductible -$5,000 HRA Fund Pays -$1,500 Family Plan

5. What will remain the same: • Plan structure remains the same (i.e. preventive care, coinsurance, lab work and x-ray benefits, etc.) • The dependent coverage deductions will remain the same • The Out-of-Pocket Maximum remains the same; $5,000/Single and $10,000/Family • Employees will continue to be required to complete the Health Assessment with biometric data to be covered by the Health Insurance Plan

6. Preventive Care – Know Your Numbers! • Schedule your annual physical – wellness exam • Post Card Reminders were mailed first week of July • Annual Wellness Exam is covered by Cigna at 100% if a Network Provider is used • Know Your Numbers! Ask your doctor for your results of your associated preventive care lab work: Total Cholesterol HDL Cholesterol Blood Pressure – Systolic/Diastolic Height Weight Waist Circumference

7. Health Assessment Campaign • Employees are to take their annual Health Assessment online at www.mycigna.com between 8/1/12 – 9/30/12 • Computer Lab Hours • Available if anyone needs a computer or assistance • Each Monday in August and September at the District Office 3:00-6:00 with the exception of 9/3/12 which is a Holiday.

8. Employee enrolls during Open Enrollment and elects an annual amount for their FSA account. Contributions are made as a payroll deduction in equal amounts each pay period (2013 Health Care FSA annual max. = $2,500) • FSA account reimburses the employee for out-of-pocket expenses incurred in that plan year via reimbursement requests sent to CIS, once the HRA fund is expended • Employee can be reimbursed for eligible out-of-pocket health/dental expenses up to their annual elected amount, before the full contributions have been made • Plan annual amount carefully based on known medical expenses to be incurred in the calendar year. If all account contributions are not used (reimbursed), remaining contributions are forfeited. • Employee receives tax advantage because FSA contributions reduce taxable income Flexible Spending Account (FSA) - Optional

9. Bridging the ‘Expense Gap’ with an FSA When the HRA fund is expended, employee pays medical/pharmacy costs out-of-pocket until deductible is met. Once the deductible is met, coinsurance benefits apply and prescription costs are reduced: