2014 Insurance & Wellness Benefits Committee

1. 2014 Insurance & Wellness Benefits Committee

2. Ancillary Renewal & History(Basic Life & AD&D, LTD, Dental & Vision) • 2012 – 7% decrease in costs for same benefits • Dental - Reliance Vision - VSP Life & AD&D & LTD - Reliance • 2013 – 0% same benefits Dental – Guardian Vision – VSP Life & AD&D & LTD - Guardian • 2014 – 0% same benefits Dental – Guardian Vision – VSP Life & AD&D & LTD - Guardian

3. Employee Basic Life, Accidental Death & Dismemberment (AD&D)Long Term Disability (LTD) • East Central College pays for a Basic Life, AD&D and LTD policy on all full-time employees. • 2014 Employer Annual Contributions $32,119 • $13,111 – Basic Life • $2,384 – AD&D • $16,624* – LTD *LTD contribution is based on salary, therefore, this amount is subject to change if there are salary increases.

4. Dental • Guardian there are no plan or cost changes to the current benefits. • 2014 Annual Employer Contributions - $95,467.68 246 Employees/Retirees enrolled – does not include spouse/dependents

5. Vision • VSP renewal no plan changes +3% * • 4-year rate lock • VSP renewal change plan design -3% • 4-year rate lock • Increase material copayment from $25 to $30 • Change carrier to Guardian 0% • 1-year rate lock • Out-of-network benefit allowance • 2014 Employer Annual Contributions $18,928.08 254 Employees/Retirees enrolled - does not include spouse/dependents

6. Flexible Spending Account (FSA) Medical & Dependent Care • 2012 ASI Flex – No change – Administration Cost paid by College - $1700 • 2013 ASI Flex – No change – Administration Cost paid by College - $1700 • 2014 – Changed to Guardian – No Administration Cost • Dependent Care Participants – 4 Employees • Medical Contribution of $275.76 paid by College for NonBJC Coverage Participants – 10 Employees • Medical Contribution paid by Employee – 13 Participants • Dependent Care Max Contribution $5000 • Medical FSA – Max Contribution $2500

7. Why do we need a Broker? • Cost is 1.5% of Premium – Broker costs can range from 3% - 10+% • 53 Compliance/Law Changes in the last 18 months • Stay current • Provide resources • Interpret • Negotiation Leverage • Last year renewal started at +8.9% ended up at -3% • SBI has 275 other groups with carriers • ECC none • Assist with Plan Administration and Claim Resolution • Experience • Privacy Issue (protect employees) • Analyze reports • Group specific and industry norms • Identify areas that need improvement • Evaluate renewal factors • Trend (was inflated on Anthem renewal) • Plan designs • Calculate HRA risk levels

8. Wellness Programs • Health Screening – Complete Blood Draw by CHC Wellness • 2010 – 91 Participants – No cost to College or Participant • 2012 - 82 Participants – No cost to College or Participant • 2013 - 100 Participants – No cost to College or Participant • 2014 – 70 Participants - $20 Cost per Employee to the College, No cost to Participant • Walking Challenge Since 2010 – No Cost to College – Participants pays fee, earns paid time off • Employee Assistance Program – New Directions – New 2013 Cost per month per full-time employee is $1.57 – Annual cost is $4125.96

9. Medical Renewal History

10. 2014 Medical Plan and Network Options • Each plan offers two network options: • Blue Access Choice (BAC) • Blue Preferred Select (BPS)

11. Anthem Networks • Blue Access Choice (BAC) Network • Includes BJC Providers. • Blue Preferred Select (BPS) Network • Does NOT include BJC Providers. BJC Providers: • MO Baptist St. Louis, St. Louis Children’s Hospital, Barnes, Christian Northeast and Northwest, and doctors with Washington University. • The BPS Network does include Missouri Baptist Sullivan Hospital.

12. Medical Plan OptionsIn-Network Benefits * 2014 - ECC will Fund $2,362.32 which is the difference between the premium cost of BAC Base Plan and BPS High Deductible Plan **Includes copayments and coinsurance. *** Prescriptions also apply to the Out-of-Pocket Maximum for the HSA Plan.

13. Medical Plan OptionsIn-Network Benefits

14. Medical Plan OptionsIn-Network Benefits

15. IRS HSA Contribution Limits

16. East Central College2014 HSA Contribution * For employee’s that have BPS Base Plan $22.98 is put into an FSA. ** For employees who enroll in additional coverage, the FSA or HSA contribution will be applied to spouse, dependent or family premium. ECC’s contribution into your HSA goes towards the 2014 IRS contribution limit.

17. 2014 Anthem Rates

18. 2015 Anthem Renewal Rates

19. Medical Cost – BAC Network The BAC Network does include BJC Providers. *East Central College pays $588.62 toward every employees health plan.

20. Medical Cost – BPS Network The BPS Network does not include BJC Providers. * Employees that enroll in additional coverage in the base or buy-up plan, $22.98has already been deducted from the monthly premium. ** East Central College pays $588.62 toward every employees health plan.

21. Medical Benefit Changes Past 3 Years • 2012 – Switched from UHC to Coventry • Changed from $2000/$4000 Non-Embedded HSA deductible to $2500/$5000 Embedded Deductible • Rx changed from $10/$25/$50 to $8/$30/$55 • Office visit change from $15/$25 to $20/$40 • 2013 - Coventry • Rx changed from $8/$30/$55 to $10/$35/$60 • 2014 - Anthem • No Plan changes • Choice between BJC and non BJC networks

22. Options to Consider • Change Plan Design • Increase Deductible and Copayments • Change Employer and Employee Contributions • Reallocate funding • Implement Health Reimbursement Account (HRA) • Employer funds down in-network deductible

23. Plan Design Change Savings Examples • Base Plan Change • Deductible: • $1000/$2000 = $36,500 (2.5%) • $1500/$3000 = $65,750 (4.5%) • Copayments: • $25/$50 = $5,800 (0.4%) • $30/$60 = $13,150(0.9%) • Rx: • $10/$35/$75 = $5,800 (0.4%) • Reducing HSA contributions to $1,500 annually – Approximate Savings $125,000 (8.5%) • Designating Non-BJC Plan the base plan – Approximate Savings $58,000 (4.0%) • BJC would be available for a buy-up cost Note: 18 out of 267 members used BJC Providers

24. Savings Options

25. Health Reimbursement Account (HRA)

26. HRA Funding

27. Questions