Archdiocese of Kansas City in Kansas 2012 Benefit Administrators Meeting

New Benefit Administration System Benefit Administration has been streamlined with conversion to HBC™ Replaces old database and reporting tool Provides real-time access to benefit data and workflow automation Enables digital data communication and transfer with carriers and TPA’s Streamlines employee eligibility and enrollment processing Archdiocese of Kansas City in Kansas 2

New Administration Procedures Changes You Need to Know About Online Monthly Invoice Delivery Beginning October 2011 Access to Your Employees’ Benefit Information –Benefit Plans Elected –Listing of Dependents (Spouses and Children) –Beneficiary Information Dashboard Summary of All Benefit Elections Archdiocese of Kansas City in Kansas 3

New Administration Procedures Login Instructions Go to –Click on “Client Login” Link will take you to the “Primebyte HBC TM ” Log in Screen User Name: Manager## Password is unique to each login and will be ed to you by the end of this week. –Click the “Log In” button * The above ## corresponds to your 1-3 digit location number found on your monthly invoice Archdiocese of Kansas City in Kansas 4

New Administration Procedures HBC TM Location Manager Demo Archdiocese of Kansas City in Kansas 5

Small Employer Health Care Tax Credit Credit is effective for tax reporting years beginning January 1, 2010 or after Eligibility –Qualifying firms must have less than the equivalent of 25 full-time workers or FTEs (e.g. a firm with fewer than 50 half-time workers would be eligible), –Pay an average annual wages below $50,000 and –Cover at least 50% of the cost of health care coverage for their workers 6 Archdiocese of Kansas City in Kansas

Small Employer Health Care Tax Credit Tax-exempt organizations are eligible for 25% tax credit in 2010 –In 2014, this rate increases to 35% –Firms can claim the credit for 2010 through 2013 and for any two years after that Gradual phase-outs for: –Firms with average wages between $25,000 and $50,000 and –Firms with the equivalent of between 10 and 25 full-time workers Premium cost eligibility: –To avoid an incentive to choose a high-cost plan, an employer’s eligible contribution is limited to the average cost of health insurance in that state Archdiocese of Kansas City in Kansas 7

Small Employer Health Care Tax Credit Example: For tax year 2010, a tax-exempt employer has 9 FTEs with average annual wages of $23,000 per FTE. The employer pays $72,000 in premiums for those employees (which does not exceed the benchmark premium) and meets the requirements for the credit The total for the employer’s income tax and Medicare tax withholding, plus the employer’s share of the Medicare tax withholding, equals $30,000 Here’s how the credit is calculated: –The initial amount of the credit is determined before any reduction: (25% x $72,000) = $18,000 –The employer’s withholding and Medicare taxed are $30,000 –Total tax credit for 2010 is $18,000 Members of the clergy that you pay should not be included in the calculation Archdiocese of Kansas City in Kansas 8

Small Employer Health Care Tax Credit If you think you may qualify: Consult with your ministry’s tax preparer or advisor Archdiocese of Kansas City in Kansas 9

What’s New or Changing for 2012? New Online Enrollment Process Changes to Current Benefits New Voluntary Plan Option Archdiocese of Kansas City in Kansas 10

New Enrollment Process 2012 Open Enrollment Period Overview Online Employee Self-Service Enrollment October 10 th through October 28 th –Self-service portal open on October 6 th for Administrators to enroll themselves and experience the new portal before their employees –“Enrollment clean-up” will be available through November via paper for those employees with documented extenuating circumstances making it impossible for them to enroll during the OE period Archdiocese of Kansas City in Kansas 11

New Enrollment Process 2012 Open Enrollment Period Overview All current benefit elections, except FSA, will be passively enrolled –Employees interested in enrolling or continuing their FSA accounts MUST make an active election for 2012 A call center will be made available for: –Any employee who has difficulty accessing or enrolling via the portal or –Any married couples both working for the Archdiocese Archdiocese of Kansas City in Kansas 12

New Enrollment Process 2012 Open Enrollment Period Overview Your Role & Responsibilities –Distribute the 2012 Guide to Benefits to all benefit eligible employees –Enroll during the early open enrollment dates available in order to be able to assist your employees during the OE period –Make a computer workstation available during the OE period for those employees who do not have computer access –Update your employees’ annual salaries with the salary as of January 1, 2012 via your Location Manager portal by October 31 st Archdiocese of Kansas City in Kansas 13

2012 Changes to Current Benefits Premiums for Health, Dental Plan and Voluntary Vision Plans Remain Unchanged Health Care Reform (aka PPACA) –Health Plan is Maintaining Grandfathered-Status for 2012 –Annual Benefit Maximum for Health Plan Increasing From $1,000,000 to $1,250,000 –No other changes apply (including recently released Women’s Preventive Care Guidelines) Increasing the age limit for all children to age 26 for Dental, Vision and Life plans, matching the Health Plan Archdiocese of Kansas City in Kansas 14

2012 Changes to Current Benefits Dental Plan Enhancements –Annual benefit maximum is increasing from $1,500 to $2,000 –Lifetime Orthodontia is increasing from $1,500 to $2,000 Archdiocese of Kansas City in Kansas 15

2012 Monthly Premium Costs Your Monthly Cost Employer Monthly Cost Total Monthly Cost Medical Plan Employee Only Family $ $ $ $ $ $1, Dental Plan Employee Only Family $16.98 $40.13 $25.47 $60.20 $42.45 $ Voluntary Vision Employee Only Family $8.99 $24.81 $0.00 $8.99 $24.81 Archdiocese of Kansas City in Kansas 16

Voluntary Plan Updates New Offering: Humana Critical Illness/Cancer Plan One-time Open Enrollment is being offered for the Humana Accident and Whole Life plans to those who did not enroll last year without completing evidence of insurability Archdiocese of Kansas City in Kansas 17

New Voluntary Plan Critical Illness/Cancer Plan pays a cash benefit if you’re diagnosed with a heart attack, stroke, coronary artery disease or cancer –Cash benefit can be used for everyday living expenses such as housing, car payments, utility bills, childcare, groceries, credit card bills or to help pay medical bills –Plan includes a $150 Health Screening Benefit per calendar year for one of 18 covered tests including mammograms, colonoscopies and stress tests Premiums are paid through payroll deduction, post-tax Archdiocese of Kansas City in Kansas 18

Other Voluntary Plans Accident Plan –Provides off-the-job coverage for accidental injuries, ambulance, hospital care and includes an accidental death benefit –Premiums paid through payroll deduction, pre- or post-tax Whole Life –Supplements term life and provides a guaranteed benefit in your working years and into retirement –Rates remain level for the life of the policy –Premiums paid through payroll deduction, post-tax Archdiocese of Kansas City in Kansas 19

Role of our Voluntary Plans Increase satisfaction with benefit plan offering without adding to employer costs Additional choices allow employees to individualize the benefit package through convenient payroll deductions The key is choice – employees are allowed to cover financial risks not addressed through the core benefit programs Organizations with voluntary benefits have higher employee satisfaction and increased productivity 1 1. Anthem Blue Cross Blue Shield and Taylor Nelson Sofres, “Employees Give High Priority to Voluntary Benefits (October 2010) 20 Archdiocese of Kansas City in Kansas

New Benefit Administration System Open Enrollment Self-Service Demo Archdiocese of Kansas City in Kansas 21