2017 – 2018 Annual Enrollment Employee Benefits Title Slide 1b - Sneak peek at an alternate accent color July 1, 2017 through JUNE 30, 2018

2017 – 2018 Employee Benefits ANNUAL OPEN ENROLLMENT WELCOME to the Liberty Elementary School District Employee Benefits Annual Open Enrollment! This is an introduction of the employee benefits that will be in effect from July 1, 2017 through June 30, 2018 This is YOUR TIME to review the benefits and make the selections to fit yours and your family needs. The decision you make will begin July 1, 2017 The Liberty Elementary School District Open Enrollment period; Meetings begin Friday, April, 21 Enrollment Period: 5/1 – 5/12

2017 – 2018 Liberty Elementary School District Employee Benefits What to Know

Benefits Eligibility Active full time employees working 30 or more hours per week. Employees have 30 days from their eligibility date to enroll or decline coverage, otherwise you will need to wait until the next open enrollment period. Coverage ends the last day of the month of termination or qualifying event. Employees have 30 days from a mid-year qualifying event to enroll or make any plan changes. Examples of mid-year qualifying events: Marriage Divorce Birth/Adoption/Legal Guardianship Loss of other coverage Enrollment in the Marketplace during the special open enrollment in November through January

2017-2018 Benefit Highlights Medical: NEW Carrier – UNITEDHEALTHCARE Employees will have two (2) PPO and one (1) HDHP medical plans to choose from. Health Savings Account (HSA): NEW HSA Administrator UnitedHealthcare OptumHSA. HDHP Enrollments ONLY are available to have an HSA; the IRS requires and governs HSA enrollment in a qualified High Deductible Health Plan (HDHP). Employee Assistance Program (EAP): New Service Provider – UnitedHealthcare: A confidential assistance program available to ALL District Employees with toll-free nationwide access and 5 free face-to-face counseling sessions. Teladoc: NEW BENEFIT OFFERING $0 Copay for ALL PLANS! ALL Employees are eligible for this benefit 100% Paid by Liberty Elementary School District

2017-2018 Benefit Highlights Dental: NEW Carrier - MetLife PPO Dental Plan: A PPO with contracted and noncontracted benefits. Greater discounts using contracted providers. Vision: NEW Carrier - EyeMed Vision Care though CSA Insurance and the Advantage Network. $10 Exam and $25 Material Copayments Life/AD&D: New Carrier – Minnesota Life Continuing Basic Life/AD&D benefit at 2x Base Annual Earnings to $150,000 Maximum Strengthened Voluntary Life/AD&D benefits with greater guarantee issue levels and higher dependent benefit maximums. Allowing employees to increase current benefits by $10,000 not to exceed Guarantee Issue without providing EOI!

2017-2018 Benefit Highlights Flexible Savings Account (FSA): Available to the PPO enrolled employees only! This is the USE IT or LOSE IT Plan. The First Financial will remain as the District’s administrator. Short Term Disability or Weekly Income Protection: Voluntary Buy-Up Plan: Continuing with MetLife as offered through First Financial Individual Voluntary Insurance: The District is continuing to offer its employees voluntary benefits in association with the First Financial Group of America to meet your individual needs. Individual Life Buy-Up Short-Term Disability Cancer Accident 403b 457b

Employee Benefit Website Go to www.bagnall.us Click on the “Benefits Login” button Enter your password “liberty” in all lowercase letters

Intent: Provide any additional info relevant to current prospect. MEDICAL

Medical Definitions Copayment: The fixed dollar amount you must pay directly to a physician at the time certain covered services, such as prescription drugs or office visits, are received. Deductible: The fixed dollar amount you must pay for covered services each plan year before the insurance company begins to pay benefits. Coinsurance: Sharing, between yourself and the insurance company, of the cost of covered services. Out-of-Pocket Maximum: The maximum dollar amount you have to pay under the terms of the insurance company’s contract in a plan year for covered services.

THE HEALTH SAVINGS ACCOUNT PIECE What does OptumHSA handle VS UnitedHealthcare if I enroll in the HDHP $3,000? HSA-HDHP $3,000 / $6,000 Two Components THE INSURANCE PIECE Access to the Choice Plus network of UnitedHealthcare’s contracted providers Customer service THE HEALTH SAVINGS ACCOUNT PIECE Investment options Rolls over from one year to the next Provides the debit card UHC Medical Plan $3,000 Single Deductible $6,000 Family Deductible Bank Account OptumHSA

Medical Plans: HDHP $3,000, PPO Silver & PPO Gold

Medical Plans: HDHP $3,000, PPO Silver & PPO Gold

Pharmacy: HDHP $3,000, PPO Silver & PPO Gold

What to think about under an HSA-HDHP What is cost difference, how do I choose? Look at your prior 12 month history form the Explanation of Benefits. It will show you the Billed, Allowed (this is the discounted fee you will pay) Use the Medical Plan Evaluator Tool on the benefits website Remember Cost Savings & Consumerism Teladoc $0 Copay is available. Enhanced Pharmacy Drug List to assist with lower costs. Ask your Pharmacist – what is the cash price, insurance price, and their own discounted price. Difference in Premiums, you can put in HSA Ask your Doctor for Generics when available

What to think about under an HSA-HDHP What do I do with my Current HSA? Keep as you own HSA Account as an Independent Account. You can contribute if you are enrolled, but will not have convenience of payroll before tax deductions. Open New UHC OptumHSA for payroll Deductions. Keep current HealthEquity account. Draw down balance on Health Equity, you are responsible for monthly banking fees. Roll Over your HealhtEquity HSA to New OptumHSA. This requires you to close you prior HSA and there is a Rollover Fee charged by HealthEquity.

How much will I have to pay In-Network if… Medical Cost Example 1 How much will I have to pay In-Network if… I’m enrolled as employee only and I am admitted to hospital for a heart attack*??? * For illustrative purposes only. Eligible facility and professional services are each subject to deductible, copay and co-insurance according to the schedule of benefits. Once out of pocket maximum is reached on both plans, all eligible major medical claims for the remainder of the calendar year will be paid at 100% by plan. Actual claim data used for above scenarios, however the UnitedHealthcare discounts will vary by provider, diagnosis, complications etc. Heart related claims continue to be the #1 in frequency and total dollars paid for the UHC plan.

Medical Cost Example 2 How much will I have to pay In-Network if… I’m enrolled as employee only and I am managing Type 2 Diabetes*??? * For illustrative purposes only. Eligible facility and professional services are each subject to deductible, copay and co-insurance according to the schedule of benefits. Once out of pocket maximum is reached on both plans, all eligible major medical claims for the remainder of the calendar year will be paid at 100% by plan. Actual claim data used for above scenarios, however the UnitedHealthcare discounts will vary by provider, diagnosis, complications etc. Heart related claims continue to be the #1 in frequency and total dollars paid for the UHC plan.

Who is Eligible for the Health Savings Account? You must be covered under the HSA-HDHP $3,000 plan Not enrolled for benefits under Medicare Do Not have an Active or Open FSA Not covered as a dependent under another person’s tax return (other than your spouse) How Much can I contribute in 2017? Single $ 3,400 less contributions made by others Family $ 6,750 less contributions made by others Age 55 < Medicare then you get $1,000 Catch-up

Why Enroll in the HSA-HDHP $3,000? Pre-Tax contributions via payroll deduction and tax free distributions for eligible expenses. Lower premiums offer an affordable cost option to cover dependents Once enrolled, you will receive a debit card to pull money that is in your savings account to pay for qualified medical expenses You own the savings account and the money stays with you The balance rolls over from one year to the next (no use-it-or-lose-it rule) Long-term savings for healthcare expenses after retirement Use money in the savings account to cover the cost of eligible expenses for your dependents even if they are not enrolled under your medical insurance!!!

What to think about under an HSA-HDHP Two Parts to the HSA-HDHP Medical Plan & Network HSA bank account I must meet the Deductible for ALL Services Medical – Physician Office Visits, Inpatient Hospital and Surgery Pharmacy – I pay the discounted fee, no copays Urgent Care & Emergency Room – I pay discounted fee Am I a Saver? High utilizer? Risk accepter? Low utilizer? CANNOT have an Open or Active FSA or be Medicare Eligible Dependent Child covered to age 19 / 24 FTUS Teladoc $0 Copay is available

Top 5 Prescriptions written 1-800-Teladoc (1-800-835-2362) How to Get Teladoc? You MUST enroll in one of the District sponsored medical plans. PPO Gold & PPO Silver HDHP $3,000 The District is paying 100% of the cost! Your dependents DO NOT have to be enrolled under the District sponsored medical plan to use Teladoc! $0.00 Consultation Fee !!!!! Examples of common calls to Teladoc….. Top 5 Prescriptions written Sinus Infections Common Cold Pink Eye Flu Allergies Bronchitis Antibiotics Antihistamines Cough suppressants Anti-bacterial medications Anti-fungal medications Ear Infections Bladder Infections UTI Upper Respiratory Infection

Intent: Provide any additional info relevant to current prospect. Dental

Dental - PPO with MetLife

Intent: Provide any additional info relevant to current prospect. Vision

Vision - EyeMed

Intent: Provide any additional info relevant to current prospect. Life Insurance

Basic Life/AD&D Insurance To cover your dependents you must first purchase coverage for yourself. If you declined coverage when first eligible you will need to complete a medical form and possibly be subject to blood/urine and other requested testing before being approved for coverage

Voluntary Life/AD&D Insurance If already enrolled – carrier giving you same benefit without having to provide EOI To cover your dependents you must first purchase coverage for yourself. If you declined coverage when first eligible you will need to complete a medical form and possibly be subject to blood/urine and other requested testing before being approved for coverage

FSA: Flexible Spending Account Intent: Provide any additional info relevant to current prospect. FSA: Flexible Spending Account

Flexible Spending Account (FSA) CANNOT have if enrolled in HSA-HDHP Health FSA maximum $2,600 Debit Card available Dependent Care FSA maximum $5,000 Use it or lose it rule reminder Deductions taken on a pre-tax basis – this LOWERS your taxable income!

Increase Your Take Home Pay!!! Example: Annual Salary of $30,000, 20 pay periods = $1,500 per paycheck Health FSA Election: $2,600 ($130 per paycheck) After-Tax Gross Amount per Pay Check 1,500.00 Federal Income Tax Rate + FICA (30%) -450.00 Gross Minus Taxes 1,050.00 Health Care Expenses -130.00 Net Income $920.00 Pre-Tax Gross Amount per Pay Check 1,500.00 Health Care Election -130.00 Gross Minus Pretax Elections 1,370.00 Federal Income Tax Rate + FICA (30%) -411.00 Net Income $959.00 Tax Savings of $39.00 per paycheck or $780 annually

Intent: Provide any additional info relevant to current prospect. Individual Voluntary

2017-2018 Benefit Highlights Individual Voluntary Insurance: The District is continuing to offer its employees voluntary benefits in association with the First Financial Group of America to meet your individual needs. Individual Life: Texas Life Buy-Up Short-Term Disability: MetLife Cancer: American Fidelity Assurance Accident: American Fidelity Assurance 403b 457b

Pharmacy Discount Card Sign up for FREE at www.singlecare.com Enter the Promo Code: Bagnall Enter the requested information to register and Singlecare will mail a personalized ID card with benefit discount information to your home! Use your computer or Smart Phone to access pharmacies in your area to find the lowest cost! You can store your debit card or FSA card for easy payment REMINDER: When you use the discount program the cost of your medications or services is not applied to your deductible or out of pocket maximum. See the “Discount Program – Singlecare” tab on the employee benefit website for more information Excellent to use when: Your medication is not covered by insurance Insurance limits your supply MRI or lab work discounts Take a card for friends or family

Intent: Provide any additional info relevant to current prospect. Next Steps

All employees must complete enrollment by MAY 12, 2017 Make sure to take advantage of guarantee issue amounts that only apply when you are first eligible for coverage! Benefits Begin JULY 1, 2017 Annual Enrollment begins APRIL 21, 2017 and ends MAY 12, 2017 Deadline to enroll for coverages is MAY 12, 2017 !

Thank You! The information described in these materials is only intended to be a summary of your benefits. It does not describe or include all benefit provisions, limitations, exclusions, or qualifications for coverage. Please review your insurance contract and/or summary plan description for a complete explanation of your benefits. If this summary conflicts in any way with the insurance contract or summary plan description, contract provisions will prevail. Questions: Please call your Human Resources & Benefits Department Or your Benefits Consultant, Gallagher Benefits Services. Ben Palumbo, Account Executive Direct: 480-428-5569 Ben_Palumbo@ajg.com Carey Craig, Marketing Analyst Direct: 480-893-6858 ccraig@Bagnall.us Gallagher Benefit Services, Inc. 480-893-6510 Main 480-893-6137 Fax