EMPLOYEE BENEFITS

OPEN ENROLLMENT MEETINGS

November 13, 2013

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• Introduction and Welcome

• Purpose of Meetings– Cafeteria Plan– Health Care Reform– 2014 Rate Information– Health Insurance Information– Dental Insurance Information– Vision Insurance Information– Information regarding Life, AD&D, LTD and

Voluntary Life Insurance– Employee Assistance Program– 403(b) Information

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Cafeteria Plan Review• Election forms• Plan year runs 1/1 of each year through 12/31• Elections are irrevocable EXCEPT for:

– Change in family status (birth, death, marriage, divorce, adoption or possibly changes brought on by changes in spouses employment affecting benefit coverage) – Notification within 30 days of event.

– Election revisions must be related to the change in family status

• Expenses from the Cafeteria Plan must be incurred during the same plan year

• Complete election forms must be turned in no later than Monday, December 2, 2013

• If there are changes in coverage (change of health plan selection; add or delete coverage; add or delete dependent coverage, etc.) ADDITIONAL FORMS must be completed

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Something New for “Use It or Lose It”

The IRS has issued Notice 2013-71 which modifies the “Use It or Lose It” rule --- but only for Health FSAs•Implements a carryover provision•Dollars not spent in the plan year can be carried over to the immediately following plan year – not to exceed $500•The amount remaining unused is the amount remaining AFTER the run-out period (March 31)•The amount of carryover does not affect the ability to elect the maximum amount allowed into the Health FSA ($2500)•Making election in November---will not know the carryover amount until the run-out period is over.•Carryover rules do not apply to dependent care.

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DOMA

The Supreme Court ruling last June has possible implications for your benefits and cafeteria plan.

The new ruling allows same-sex lawfully married couples to fully utilize the cafeteria plan.•Premiums for health coverage can be paid through the Flex Plan•Health reimbursements and dependent care rules can also apply

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Health Care Reform• Review

• Coverage for Dependents – Effective January 1, 2011 dependent children

became eligible to be covered up to the age of 26

– Eligibility: • Can be Married or Unmarried• Student or Non-Student• Do not have to live with you• Natural, adopted, step, or domestic

partner’s children• The spouse or children of your dependent

are not eligible6

Health Care Reform Cont’d.• The removal of lifetime maximums• Elimination of certain annual maximums• Elimination of co-payments for preventive

services. • Insurance companies can’t turn down individuals

with pre-existing conditions• Over-the-Counter Medications

Effective January 1, 2011: Over-the-counter medicines or drugs were no longer able to be reimbursed from your medical reimbursement accounts unless you have a prescription from the doctor. Insulin is excluded from this requirement.

Medical expenses that are not medicines or drugs, such as crutches, eye glasses, contact lenses, and bandages are still allowable reimbursements.

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Health Care Reform Cont’d.

• W-2 Reporting – Beginning with W-2s provided in January 2013 (for 2012), the value of employer-provided health coverage was reported. The amount reported included both the portion of coverage paid by the employer and by the employee, regardless of whether the portion is paid on a pre-tax basis through salary reductions or on an after-tax basis. This will NOT be taxable income. This will continue as a reportable item on the W-2

• Beginning 2013 the maximum contribution to the health FSA (medical reimbursement account) changed to $2,500 (previously $5,000 under our rules)

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Health Care Reform Cont’d.

•Requires “Essential Health Benefits” across all plans and includes:

• Ambulatory patient services• Prescription drugs• Emergency services• Rehabilitative services and devices• Hospitalization• Laboratory services• Maternity and newborn care• Preventive and wellness, chronic disease management• Mental health and substance use services• Pediatric services, including dental and vision

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Health Care Reform Cont’d

Requires Standardized Coverage•There are four tiers of plans

• Platinum – insurance pays an average of 90% of cost of care

• Gold – insurance pays an average of 80% of cost of care

• Silver – insurance pays an average of 70% of cost of care

• Bronze – insurance pays an average of 60% of cost of care

The Research Foundation offers three PPO plans. Our new 60% plan is equivalent to the Bronze plan. Our High (90%) and Lo (80%) plans are actually richer that the Platinum and Gold plans.

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Health Care Reform Cont’d.

• New for 2014– Employer mandate

• Delayed until 2015• Requires coverage be offered to all employees

exceeding certain thresholds (ave. 30 hours/per week over a defined period of time (look-back period)

• Plan offered must be affordable and contain essential health benefits

If employee declines RF insurance, a signed declination is required.

– Individual mandate – in force beginning 2014• Buy insurance or pay a penalty• Penalty for 2014 is $95/adult or 1% of income,

maximum is $285/household• Penalty will increase each year (example: 2016 is

$695/adult or 2.5% of income, max $2,085/household)

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2014 Rates• Medical: Increase – Products remain with Anthem• Dental: No increase – Product remains with

Humana• Vision: Increase – Remains with VSP with some

program enhancements• Basic Life & AD&D with MetLife

– Paid on your behalf by the Research Foundation

• Voluntary Life – Rates remain unchanged– Remember rates are age banded. If you had a

birthday and you (or spouse) moved from one age band to another (an age ending in a 0 or 5) then you will notice a rate increase starting in January for the cost of your voluntary life insurance.

• Long Term Disability – with MetLife– Paid on your behalf by the Research

Foundation

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Medical• Moderate Increase in medical premiums

– PPO Products - 7%– HMO Product – 4.8%– 3.83% of increase attributable to Affordable Care Act– The dollar increase is being split 75%/25% with the RF

absorbing 75% of the dollar increase.

• Changes in the Medical Program– HMO no longer open to new enrollees – existing will be

allowed to utilize the HMO program as they have been– Eliminating the HDHP Plan (High deductible) – low

participation– Starting new PPO Plan – Bronze level

• Plan is not for everyone• Designed to help us meet the employer mandates for

2015• Will be a viable option for some employees• Important to understand how this plan differs from our

other PPO plans

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MEDICAL PREMIUM HISTORYEMPLOYEE SHARE

2006 2007 2008 2009 2010 2011 2012 2013 2014Blue Cross HMOEmployee Only $112.08 $103.88 $103.38 $115.78 $123.89 $136.22 $165.55 $184.40 $ 192.04 Employee + 1 $164.82 $147.68 $147.21 $166.73 $178.40 $195.80 $254.46 $292.18 $ 307.46 Employee + 2 $230.75 $206.75 $206.09 $233.42 $249.75 $274.12 $356.24 $409.03 $ 430.41 Blue Cross LoEmployee Only $162.64 $151.69 $151.33 $119.34 $119.34 $131.39 $196.43 $196.43 $ 207.78 Employee + 1 $250.22 $232.00 $232.01 $171.86 $171.86 $189.21 $319.28 $319.28 $ 341.98 Employee + 2 $350.31 $324.80 $324.81 $240.60 $240.60 $264.89 $446.99 $446.99 $ 478.77 Blue Cross High***Employee Only $179.54 $169.76 $170.66 $138.67 $138.67 $152.67 $222.98 $222.98 $ 235.98 Employee + 1 $284.01 $268.15 $270.69 $210.54 $210.54 $231.79 $372.40 $372.40 $ 398.38 Employee + 2 $397.61 $375.41 $378.96 $294.75 $294.75 $324.51 $521.37 $521.37 $ 557.76 Blue Cross MEC - 60%Employee Only $ 102.00 Employee + 1 $ 216.34 Employee + 2 $ 309.05 Blue Cross HDHPEmployee Only $84.57 $90.28 $142.18 $142.18Employee + 1 $127.87 $136.51 $245.50 $245.50Employee + 2 $182.67 $195.02 $350.73 $350.73

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Dental & Vision Premium HistoryEmployee Share

Dental

cal yr 2006 cal yr 2007 cal yr 2008 cal yr 2009 cal yr 2010 cal yr 2011 cal yr 2012 cal yr 2013 cal yr 2014

Employee $31.50 $31.50 $31.50 $16.48 $16.48 $21.39 $22.69 $19.34 $19.34

Employee & Spouse $49.00 $49.00 $49.00 $35.51 $35.51 $42.81 $45.42 $44.02 $44.02

Employee & Chil(ren) $56.50 $56.50 $56.50 $43.89 $43.89 $50.58 $53.66 $41.94 $41.94

Employee & Family $75.75 $75.75 $75.75 $61.43 $61.43 $74.92 $79.49 $67.82 $67.82

Vision

cal yr 2006 cal yr 2007 cal yr 2008 cal yr 2009 cal yr 2010 cal yr 2011 cal yr 2012 cal yr 2013 cal yr 2014

Employee $3.34 $3.34 $3.34 $3.34 $3.34 $3.34 $3.34 $3.34 $3.38

Employee + 1 $6.67 $6.67 $6.67 $6.67 $6.67 $6.67 $6.67 $6.67 $4.90

Employee + 1 or more $8.67 $8.67 $8.67 $8.67 $8.67 $8.67 $8.67 $8.67 $8.79

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CSU Chico Research Foundation-2012 Voluntary Life Rates

Optional Employee Life Age Band Amount/$1000<20 $0.050

20-24 $0.05225-29 $0.06230-34 $0.08035-39 $0.10640-44 $0.17045-49 $0.24850-54 $0.46255-59 $0.87460-64 $1.28265-69 $2.17270+ $3.898

Optional Spouse Life Age Band Amount/$1000<20 $0.044

20-24 $0.06825-29 $0.08230-34 $0.10235-39 $0.13240-44 $0.19845-49 $0.31050-54 $0.56255-59 $1.04860-64 $1.56865-69 $2.56870+ $4.754

Optional Child Life $0.240

Voluntary AD&D Amount/$1000Employee $0.030Family $0.040

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Vision – VSP• Slight (2% increase)• Information fliers in your packets about

some new discounts offered on frames• TruHearing Hearing Aid Discount

Program

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MetLife• Carrier for Basic Life & AD&D and LTD Programs• Basic Life

– $40,000 of Basic life insurance and AD&D– Employer paid

• LTD– LTD is 66.67% of pre-disability earnings less

income from other sources (such as Social Security, workers’ compensation, SDI, etc.)

• Maximum is $5,000/month

• 90-day elimination period

• Employer paid

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MetLife Cont’d• Voluntary Life

– Rates provided earlier in presentation– If buying up, after initial 30 days of

employment, requires a Statement of Health form be completed.

– Can be purchased in $10,000 increments to a maximum of $500,000 or 5x base annual salary for employee; $5,000 increments for spouse to a maximum of $250,000 or 100% of employee; up to $10,000 for child.

– Premiums are age-banded and deducted from employee paycheck. Not eligible to be paid from Cafeteria Plan

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MetLife Cont’d

• Travel Assistance – On Website

• Will Preparation – On Website

• Employee Assistance Program– Access to over 50 clinicians within a 30-mile radius– Entitled to up to 5 consultations with a licensed clinician

per incident, per individual, per calendar year– Fliers with additional information located in BMU 314

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