your health benefits 2016 open library/hr/benefits/2016/2016-open-enrollmen · your health benefits

Download Your Health Benefits 2016 Open Library/HR/Benefits/2016/2016-Open-Enrollmen · Your Health Benefits

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  • Your Health Benefits2016 Open Enrollment

    October 2015

  • So why are we here?

    Sneak Peak for 2016 Open Enrollment No major plan changes this year

    Minor feature changes

    Focus on Health Investment Plan Education Focus on Health Investment Plan Education Many employees are STILLmissing a significant

    retirement savings opportunity 75% vs. 23%

    New tools and resources to assist

    Check step to maximize HSA savings

    Upcoming changes for the 401k plan

  • What we are going to cover:

    2016 Open Enrollment Updates

    What is the Health Investment Plan again?

    Why is this important to Teradyne & our employees?

    Why should you consider having an Health Savings Account?

    Real life Scenarios Real life Scenarios

    What do you need to consider?

    Resources to make the decision and transition easier


  • 2016 Open Enrollment UpdatesMedical Changes

    Overall, the cost trend is flat across all plans

    Slight changes in premiums depending on plan experience

    Health Investment Plan

    Embedded per member Out-of-Pocket Maximums: $3,350 Family: $ 6,750

    Maintenance medication not subject to deductible.

    Introduction of Castlight Tool for managing medical costs

    Dental 6.5% Increase 6.5% Increase

    Enhancement: Implant coverage revised to be more inclusive 50% up to the max

    Vision No increase and enhancement for separate contact fitting allowance and anti-

    reflective lenses coating.

    Supplemental Life Insurance moving to age banded rates

    401k Fund line up & Fee Changes See schedule for upcoming meetings

  • What do we offer for BCBS Medical Plans?

    Advantage EPO - 0.7% increase Highest premiums

    In network only

    Co-pay model






    Preferred PPO - 2.6% increase In-network and out-of-network coverage

    Co-insurance model

    Health Investment Plan (HIP) w/HSA - 5.2% decrease

  • Let us re-introduce you to:

    Teradyne Health Investment Planwith a Health Savings Account with a Health Savings Account


    1. Learn 2. Assess 3. Compare 4. Plan

  • From the Corner HR OfficeJoin the wave!

    This year I am encouraging you to consider joining the wave. The wave consists of Teradyne

    employees who have switched to the Health Investment Plan for their health insurance coverage. This

    is the plan which features much lower monthly premiums out of your paycheck, and substantial annual

    company contributions into a tax-deferred long term Health Savings Account you own for life. In return,

    you accept higher deductibles. When it all nets out, we know based on actual claims data that more

    than 75% of our employees would be better off financially in this plan.

    Its really the wave of the future for health plans in the United States, as well as at Teradyne. After a

    major communications and education push last year, enrollment doubled in this plan. Plan participants

    new and old are giving it quite positive reviews, almost all of whom are planning to stay in the plan for 2016.

    I plan to re-enroll in the plan for my sixth consecutive year.

    I highly encourage you to give this plan serious consideration. There are easy to use tools available forI highly encourage you to give this plan serious consideration. There are easy to use tools available for

    you to review your past medical claims data, or model hypothetical health situations, and see how

    much you would pay in this plan versus your current plan.

    Also, please attend one of the employee information sessions coming soon to your site or via webex.

    You will be glad you did.

    On a related note, we are making several changes to the fund line up and fee structure for the 401k plan in

    November which I am confident you will find advantageous. Please read the employee announcements

    and check out the Brainshark on the Open Enrollment website highlighting this change or feel free to

    contact the HR Service Center with any questions.


    Steve Fagerquist

    Vice President, Human Resources

  • Why the big push AGAIN this year? We ALL own the cost of health care

    Health care costs continue to drive significant cost

    ~$20M per year

    Current Health Investment Plan enrollment is 23% (compared to the market +30%) up from 8% last year


    (compared to the market +30%) up from 8% last year

    Remove lack of understanding as a barrier to

    enrollment in the Health Investment Plan

  • Why should you consider the Health Investment Plan? Why should you consider the Health Investment Plan? Why should you consider the Health Investment Plan? Why should you consider the Health Investment Plan? Why should you consider the Health Investment Plan? Why should you consider the Health Investment Plan? Why should you consider the Health Investment Plan? Why should you consider the Health Investment Plan?

    Over 75% of our employees would have been financially better off in the Health Investment Plan

    An HSA really needs to be considered as part of your overall retirement strategy

    Projected $220,000 medical expenses in retirement

    The MOST tax advantaged savings vehicle


    The MOST tax advantaged savings vehicle

    There are significant resources to assist you and educate you about the rules of the plan

    Youre missing a significant opportunity

    Dont be paralyzed by fear or misunderstanding

    Learn about the plan, do the math and understand the true cost, risk & probability.

  • How to find out if the Health Investment Plan is for YOU1. Learn about the Plan

    Attend a presentation

    Fidelity HSA Brainshark

    Health Investment Videos

    Guidespark Videos

    Talk to someone in the plan

    2. Compare Plans Review plan comparison charts Review plan comparison charts

    Understand how the plans function differently

    3. Model your Costs Castlight Health Assess your costs

    Fidelity Health Plan Cost Modeling Tool

    4. Plan for the Upcoming Year Consider fully funding your HSA the first year

    Set up your HSA account

    Start thinking about becoming a health care consumer

  • Whats the Health Investment Plan?(formerly the Blue Care Elect Saver PPO with HSA)

    Health Savings Account (HSA) administered by Fidelity

    Its a unique and powerful combination


    Consumer Driven


    Long term savings vehicle for medical expenses, invested similar to a 401k

    Individual brokerage account

    Pays for qualified medical expensesfor you, your spouse, and eligible dependents

    Triple taxed-advantaged benefits

    Teradyne contributes $650 for individuals and $1300 for indiv + 1 and family.

    Consumer Driven

    Health Plan (CDHP)

    Lower premium

    Slightly higher deductible

    Higher Out-of-pocket maximum

    Preventative Coverage at 100%

    Enrollment is required to open an HSA

    partnered partnered partnered partnered


  • 1. Unique Tax Savings Opportunity

    Advantages of a Health Savings Account (HSA)


    2. HSA Balance grows over time

    3. It belongs to you

  • Are you missing an opportunity?

    Teradyne has a higher than average Savings Plan Participation:

    88% of Teradyne employees participate in the 401k Savings Plan

    >30% of Savings Plan Participants hit the annual contribution max ($18,000)

    Annual contributions to an HSA are independent of what can be contributed to a 401k or Roth IRA.

    Teradyne funds 50% of the annual deductible into employees HSA accounts

  • Think about your overall retirement strategy Are you maximizing what is available to you?

    First, contribute enough to your 401(k) to maximize the employer match

    Next, consider contributing to the HSA up to the applicable limit, taking

    would recommend the following.

    Note: Consult a tax advisor for additional advice on how to maximize your contributions.

    Next, consider contributing to the HSA up to the applicable limit, taking

    advantage of the employer HSA contribution ($650/$1300)

    Next, consider contributing more to your 401(k) up the maximum, $18,000 or

    $24,000 if you will be age 50 or older by December 31.

    If you still wish to save more, consider contributing to an IRA, individual

    savings or brokerage account.

  • If you have an HSA Are you STILLmissing an opportunity?

    Youve made the leap to join the plan, but are you taking the opportunity to invest your funds so your investment can grow tax free?

    Of the individuals that have an HSA account:

    Less than 10% are investing in moderate to aggressive fundsLess than 10% are investing in moderate to aggressive funds

    Teradyne has higher population of Savers

    56% are Savers / Semi Savers

    vs 39% for Fidelitys Book of Business

    Pay for expenses out of pocket is you can plan the cash flow


    Semi-Saver = Spends 10% to 35% of current year contributions

    Saver = Spends 10% or less of current year contributions

  • How do I use this plan?





  • * The Fidelity-sponsored 2014 HSA survey was conducted

    by GfK Public Affairs & Corporate Communications from

    April 30 to May 9, 2014, using GfKs KnowledgePanel, a

    nationally representative online panel composed of 1,


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