2014-2015 Arizona western college

2014-2015Arizona western college Dr. Ruth Whisler and Mrs. Patricia Jimenez

Before we begin - • The most important papers - • Ruth Notes (concept borrowed from Cliff Notes) • PowerPoint will be on the HR website • Most important Dates – (next slide) • Questions at the end, please. …

2014/2015 Benefit Year • Dates to Remember! • Enrollment period: May 5th – May 15th • Deadline for making changes: May 15th • Changes effective: JULY 1, 2014 • YOUR Benefits Expert: Patty Jimenez Patty.jimenez@azwestern.edu – x76037 Dates are non-changeable

Brief History of Insurance Benefits • Consortium – Self Insured • Yuma Area Benefits Consortium • AWC, City of Yuma, Crane Elementary District, Yuma School District One • Traditionally: Annual premium increase, absorbed by AWC • This year costs increased again – 12% for Plan A; 3% HDHP (High Deductible Health Plan) • Cannot absorb – SO AWC continues to keep premium costs to employees equitable …

Today: Two Plans High Deductible Health Plan (HDHP) - (Misnamed) Plan A (Needs a new name) Available with or without dental coverage Vision is included Life is part of AWC package FSA (FLEX Spending Account) - enroll each year (Optional benefit) • Available with or without dental coverage • Vision is included • Life is part of AWC package • HSA (Health Savings Account) – auto rollover (Optional benefit) …

Things You should know before we continue…Locus of Control Not under AWC Control Under AWC Control AWC will pay $510/month toward each full time employee’s health care benefits ($6,120/year) This means: If you are on Plan A: AWC will pay $510/month for full time employee premiums (with and without dental) If you are on HDHP: AWC will continue to pay the full premium for the employee (with and without dental coverage) AND - AWC will contribute $1,536 to each member’s HSA account – July 1, 2014 You retain control over which plan you choose for yourself and your dependents. • Premium increases for both plans. • Plan A – 12% • High Deductible Health Plan (HDHP) -- 3% …

IRS Regulations : Health Savings Accounts Medicare IRS Pub.969, p 6 2013 - IRS 1040 Filings If you use the account during the calendar year, you must file Form 8889 (very short). It simply reports contributions. Box 12 of your W-2, Wage and Tax Statement from your employer will contain the amount AWC contributed to your HSA • Bottom line: Medicare prohibits HSA. • You may participate in the HDHP even if you have Medicare. • But, beginning the first month you are enrolled in Medicare, you cannot contribute to an HSA NOTE: These important items should be discussed with your tax preparer or financial consultant. AWC is not a tax service nor responsible for interpreting IRS regulations.

HEALTH SAVINGS ACCOUNTFORM 8889 …

AWC Contributes to your coverage regardless of your choice of plan Let’s look at the breakdown of costs and coverage …

Premiums for High Deductible (HDHP) [employee & dependents]Medical, vision and prescription …

High deductible – Benefit Description – if you are not covered by Medicare …

Health savings account benefits –If not on Medicare IRS Pub. 969, p. 2 (2013) And…. Interest & other earnings are tax free Distributions may be tax free if used for qualified medical expenses HSA is portable – goes with you Qualified Medical Expenses are those incurred by you, spouse, dependents claimed on your tax return • You can claim tax deduction for contributions you or anyone except your employer make to your account • Employer contributions may be excluded from your gross income • Contributions remain in your account until you use them NOTE: AWC and the presenters of these slides do not take responsibility for IRS changes in rules. DO speak with your financial consultant or tax preparer.

Premiums for Plan A [employee & dependents]Medical, vision and prescription …

Plan A - Benefit Description …

Let’s Compare…. Let’s look at actual out of pocket costs in and out of network, Health Savings Accounts & Flexible Savings Accounts, and more benefits provided at no cost to our employees! ….

2014-15 - What will I pay? employee and dependent coverage …

What does it really mean? Comparison : In Network– HDHP & Plan A OUT OF POCKET COMPARISON Plan A:Out of Pocket (OOP) maximum: deductible, copays, and coinsurance all accumulate to the out of pocket maximum - In Network Per Person: $5,250 per year (7/1/14—6/30/15) Per Family: $10,500 When met: Insurance pays 100% of costs 2013-14 Per Person: $3,000 ________________________________________________________________________________________________________________________ HDHP: Per Person: $3,000 per year (7/1/14—6/30/15) Per Family: $6,000 When met: Insurance pays 100% of everything 2013-14 Per Person: Same Remember – July-June, not calendar year

Comparison – out of network Plan A: Out of Pocket (OOP) maximum: deductible, copays, and coinsurance all accumulate to the out of pocket maximum - In Network Per Person: $9,000 per year (7/1/14—6/30/15) Per Family: $9,000/person – total figure depends upon persons in family When met: Insurance pays 100% of costs 2013-14 Per Person: $9,000 ___________________________________________________________ HDHP: Per Person: $8,000 per year (7/1/14—6/30/15) Per Family: $16,000 When met: Insurance pays 100% of costs 2013-14 Per Person: Same …

Health Savings Account (Hsa) – AWC Gives to employees • Health Savings Account: HDHP Program • Contribution Limits for 2014-15: • $3,300 for Single; $6,550 for Family (This includes the employer contribution.) • If you are 55+, your contribution limit is increased by $1,000 (IRS Pub 969, p.5) • Benefits: • AWC “up fronts” the first level of deduction : $1,536. • You can add to your HSA account through payroll deduction for the time and amount you choose. Be sure to work with Mrs. Patty Jimenez to make this happen: patricia.jimenez@azwestern.edu • Stays with you. It’s your money even if you change jobs. • NO “use it or lose it” conditions. Your money rolls over into the next year. • Reduces your taxable income: The money remains tax-free when you deposit and withdraw for qualified medical expenses. • Pays for insurance deductibles, medical care and supplies that are not typically covered by medical insurance such as prescription medicines, dental, LASIK eye surgery and much more. • HSA Investment Account is available online at www.eflexgroup.com …

Your health. your money. your control. • How it Works: • You and AWC deposit money into your eflexHSA for current and future medical expenses. • You’ll receive an eflex debit card to use for eligible medical expenses. • Acts as a debit card - swipe the card at the time of purchase and funds are automatically withdrawn from your account and paid directly to the provider. Card can also be used for on-line and US mail bill payments (hospital or provider). • Even if you’re no longer covered under the HDHP, eflexHSA can remain active, you just won’t be able to contribute funds. • Reimbursement/Withdrawal – You can make a withdrawal at any time. Request your distribution online, funds will be sent via direct deposit to your checking or savings account within five days. • (1099 will be issued) See your financial consultant for specific data.

Flexible Spending Account(FSA) – Plan A • Reduce your taxable income by what you spend on non-reimbursable medical and dependent care expenses. • 2014-15 Maximums: How much can I select? • $2,500 Health • $5,000 Dependent Care • You select your deduction at the beginning of the benefit year and it remains stable until the next Open Enrollment period • VERY IMPORTANT • Even if you are currently enrolled in the Flexible Spending Account, you MUST enroll for each plan year. • This is a “use it or lose it” account. It does not roll over nor follow you when you leave employment. ….

Mail order option -- prescriptions: Catamaran Home Delivery Note: You can check the cost of your prescriptions to determine if this is the best plan for you. (Phone or on-line options.) As easy as 1, 2, 3…. • Your doctor writes your prescription for a 90-day supply, plus 3 refills within a single year • Complete the order form • Mail the form, original prescriptions and payment information to: • Catamaran Home Delivery – 1-800-881-1966 PO Box 407096 – Ft. Lauderdale FL 33340-7096 • For additional information, please visit : www.mycatamaranRx.com Note: You pay full cost of prescriptions until deductible is met. ….

AWC-Provided Life Insurance & Short term disability insurance • AWC will continue to pay 100% of Life Insurance AND Short Term Disability Insurance premiums for full time employees. • Life Insurance Benefit: • $20,000 per individual/first two years of employment • 2.5 times your gross annual salary after two years of service • Short Term Disability Benefit: In the event of an illness or disability in excess of 60 calendar days: • 66.67% (2/3) of weekly earnings up to a max of $1,000 • For a maximum of 26 weeks - FMLA in the mix Please see Mrs. Patty Jimenez for individual questions about this benefit.

** Emergency Travel Assistance • Sun Life Benefit – More than 100 Miles from Home - Part of the Package • Assist America – 24/7, 365 • Med Consultation, Evaluation, Referral • Hospital Admission Guarantee • Emergency Medical Evacuation • Critical Care Monitoring • Medical Repatriation • Prescription Assistance • Emergency Trauma Counseling • Compassionate Visit • Care of Minor Children • Legal & Interpreter Referrals • Return of Mortal Remains …

Wait, WAIT, There’s MORE ….

Optional (Additional) Life Insurance Benefits • SunLife • Available for full time employees and dependents • Purchase additional Life Insurance through convenient payroll deductions. • Cost is based on age. • Employee – Guarantee to employee : $100,000 (no physical). • Spouse – 1/2 of employee coverage up to a maximum of $25,000. • Children – up to a maximum of $5,000 for each child. • Your dependents may ONLY be covered if the employee is enrolled in this optional benefit. ….

Employee Assistance Plan • AETNA EAP {Employee Assistance Plan} • Free, confidential support for you and anyone living in your household to help you balance the demands of work, life and personal issues. • Assessment & short term counseling – 10 Visits. • 24 hour crisis intervention line. • Referrals to other resources as needed. • 1-888-238-6232, or visit www.AetnaEAP.com • Note: There is an AWC security code required for this service. This code is available in Human Resources and your benefits packet. Log in: Aetna EAP

Reminders – “Must KNOW” Info - MUST know: and FSA (Flexible Spending Account) – You will need to complete the PayFlex form in order to be or remain enrolled. • ALL employees must complete an Election form– EVEN if you are NOT making any changes. • If you are switching from PLAN A to HDHP, you will need the following: • A new Enrollment • An eflex form • A voided check ….

Final Hot Items -- • Final things to Remember: Patty Jimenez – x76037 Everyone must complete the Election Form. (Even if you have no changes.) All forms are available on the Human Resources website, in this room today, and in the HR suite. Submit all forms to H.R. no later than close of day, May 15 All changes are effective July 1, 2014. These are definite dates; they cannot be altered.

Individual Questions will be answered at the conclusion of the presentation – or come to hrpatty.jimenez@azwestern.edux76037 Thank You, Dr. Ruth Whisler Mrs. Patty O. Jimenez …

2014-2015 Arizona western college