2017 Open Enrollment Town Hall Meeting Lisa Belanger-Buoniconti Executive Director Human Resources Development Chris Monroe Senior Vice President USI Insurance Services

WHAT HAPPENS EACH SUMMER? Preparations for open enrollment begin in July – Negotiations with insurance carriers for renewal projections for the next calendar year based on prior year plan performance * * Funding arrangements - Medical insurance – approximately $12M self-funded - Dental, vision, disability & life insurance – fully-insured Benefits Taskforce (BTF) convenes to review renewal projections and formulate recommendations

HOW DO WE STACK UP AGAINST OUR PEERS? MEDICAL INSURANCE United Healthcare clinical consult/plan performance review (medical and Rx experience) benchmarks our experience year over year, against peer institutions in the northeast region and their overall book of business (BOB). Our medical insurance plans’ design, age and gender factors, chronic condition and disease prevalence remain above the norm.

WHAT ARE MY OPEN ENROLLMENT OPTIONS FOR CY 2017? MEDICAL INSURANCE Deductible-based Plan (co-insurance) or Point of Service (co-pay) plan. Both plans offer:   All preventive services and annual wellness exams (including mammograms, colonoscopies, immunizations and well-child visits) are covered at 100%. The same in-network provider options, regardless of plan election. The same out-of-network benefits for providers who do not participate in the United Healthcare network, subject to a calendar year deductible. After the annual deductible is met, the plans will cover 70% of designated costs, subject to reasonable and customary consideration, up to the out of pocket maximum (including deductible), and then the plan pays 100% for the remainder of the calendar year.

PREMIUM CONTRIBUTIONS HOW MUCH WILL IT COST FOR MEDICAL INSURANCE? PREMIUM CONTRIBUTIONS Two tier (rather than three tier) cost-share arrangement as follows:   Base salary < $50,000 and $50,000 + The University will pay a higher subsidy for the DBP and apply that same dollar amount to the POS Plan. Base Salary, if Annualized Deductible-based Plan (DBP) Point of Service Plan (POS) University Contribution Employee Contribution Employee Contribution < $50,000 90% of premium 10% of premium Same $ for DBP Balance $50,000 + 80% of premium 20% of premium

No Change in Take-Home Pay ENROLLMENT SCENARIOS Scenario #1: Individual (annualized salary of $37,000) switches from POS to DBP CY 2016 Employee Contribution for POS Plan: $2,306.64 CY 2017 Employee Contribution for DBP: $797.04 No Change in Take-Home Pay Premium savings: $1,509.60 UHart HSA Contribution $750 Potential HSA Annual Balance $2,259.60

No Change in Take-Home Pay Enrollment Scenarios Scenario #2: Employee + spouse + child(ren) (annualized salary of $41,000) switches from POS to DBP CY 2016 Employee Contribution for POS Plan: $6,577.44 CY 2017 Employee Contribution for DBP: $2,272.32 No Change in Take-Home Pay Premium savings: $4,305.12 UHart HSA Contribution $1,500 Potential HSA Annual Balance $5,805.12

Increase in Cost (pre-tax) $4,213.68 Enrollment Scenarios Scenario #3: Employee + spouse + child(ren) (annualized salary of $52,000) stays in POS CY 2016 Employee Contribution for POS Plan: $6,577.44 CY 2017 Employee Contribution for POS Plan: $10,791.12 Increase in Cost (pre-tax) $4,213.68

No Change in Take-Home Pay Enrollment Scenarios Scenario #4: Employee + spouse + child(ren) (annualized salary of $52,000) switches from POS to DBP CY 2016 Employee Contribution for POS Plan: $6,577.44 CY 2017 Employee Contribution for DBP: $4,544.64 No Change in Take-Home Pay Premium savings: $2,306.64 UHart HSA Contribution $1,500 Potential HSA Annual Balance $3,806.64

WHAT ARE MY PRE-TAX SAVINGS OPTIONS? Health Savings Account (HSA) United Healthcare / Optum Bank (partners ONLY with DBP) Personal, individually-owned bank account where funds can be carried over from one year to the next, allowing eligible participants to accrue funds for future qualified expenses, earn interest on deposits or invest in mutual funds. Annual contribution limits - $3,400 * for individual coverage election $6,750 * for family coverage election *If you are over age 55, the IRS catch-up provision allows you to contribute an additional $1,000; access to funds as they are deposited; $1.00 monthly maintenance fee for average balances < $500. The University will continue to contribute (on a pro-rated basis) – $750 for the individual medical insurance coverage election or $1,500 for the family medical insurance coverage election.

Health Reimbursement Account (HRA) WHAT ARE MY PRE-TAX SAVINGS OPTIONS, CONT.? Health Reimbursement Account (HRA) United Healthcare / Optum Bank (partners with DBP for eligible faculty and staff) Because the IRS does not allow a Medicare eligible employee to participate in a HSA, the University will introduce a Health Reimbursement Account. An HRA is an Employer sponsored account that reimburses employees’ eligible medical and prescription drug expenses. Unused HRA balances will be “rolled over” into the next plan year for any active employee. Under current IRS guidelines, only the employer is specifically permitted to contribute to an HRA and funds in a HRA stay with the employer if an employee separates from service. The University will fund, on a pro-rated basis, $750 for the individual medical insurance coverage election or $1,500 for the family medical insurance coverage election. Participation in a HRA does not preclude Medicare-eligible faculty and staff from also participating in a FSA.

Flexible Spending Account (FSA) WHAT ARE MY PRE-TAX SAVINGS OPTIONS, CONT.? Flexible Spending Account (FSA) United Healthcare (partners with POS, eligible HRA participants, or those who do not elect UHart coverage.) Annual contribution limits - $2,550 for the Health Care FSA $5,000 for the Dependent Care FSA Health Care FSA – Access to funds immediately at onset of plan year; roll-over provisions ($500 per year) if you elect the Health Care FSA in the following plan year. If not elected, unused funds remaining will be forfeited. Dependent Care FSA – Access to funds as they are deposited.

SO WHICH MEDICAL INSURANCE PLAN IS RIGHT FOR ME? Check out our Plan Cost Estimator from United Healthcare – an easy-to-use online tool customized specifically for the University’s two medical insurance plan options. The estimator can:   Provide detailed comparisons on plan premiums, out-of-pocket costs, per-paycheck contributions and much more. Help determine how much money to set aside for flexible spending and/or health savings accounts. Assist in comparing cost differences between the University’s plans and other plan choice options (such as a spouse’s plan).

SO WHICH MEDICAL INSURANCE PLAN IS RIGHT FOR ME, CONT.? To access the Plan Cost Estimator tool, log on to www.pcestimator.com* and enter the following credentials:   Username:  UHART2017 Password:  Benefits2017 * Link is also available on the HRD website at www.hartford.edu/hrd , click the red Open Enrollment button.

WHAT’S NEW WITH WELLNESS? The University will continue to partner with United Healthcare to offer Rally – a digital, personalized health experience available to United Healthcare members – which offers both enhanced technologies as well as integration opportunities which streamline the user experience. Mobile web capabilities Establishes personalized health goals, missions and action plans Tracks individual results and rewards members with coins to achieve their goals Provides step-by-step support (in English and Spanish), making the experience fun and encouraging greater levels of engagement New and exciting incentives will continue to be awarded to those that engage in this wellness experience. Log in to www.myuhc.com beginning on January 1, 2017, to begin experiencing Rally in 2017!

WHAT’S HAPPENING WITH THE OTHER INSURANCE PLANS? DENTAL INSURANCE The University will retain Aetna to administer the Freedom of Choice dental insurance plan. Inherent within the Freedom of Choice plan is a feature that allows members to enroll in either the Dental Maintenance Organization (DMO) or Passive Preferred Provider Organization (PPO) network and continues to provide the ability to move back and forth between the DMO and PPO through the course of the year. No cost increase to this plan for CY 2017!

WHAT’S HAPPENING WITH THE OTHER INSURANCE PLANS, CONT.? VISION INSURANCE The University will continue to partner with United Healthcare to offer a comprehensive vision plan which provides participants access to a national network and out-of-network coverage options as well as discounts and allowances on lenses, frames, contact lenses and laser vision correction. The vision plan also includes discounts on hearing aids. No cost increase to this plan for CY 2017! To learn more about the vision insurance plan, please visit http://www.brainshark.com/UHCSB/University_of_Hartford_Vision

OPTIONAL LIFE INSURANCE(S) WHAT’S HAPPENING WITH THE OTHER INSURANCE PLANS, CONT.? OPTIONAL LIFE INSURANCE(S)   If you are currently enrolled in an optional life insurance plan (supplemental, spousal and/or dependent child[ren]), you can increase your level of coverage by one multiple, up to the guaranteed issue limit, without proof of insurability. If, however, the one-multiple increase in coverage is greater than the guaranteed issue limit, evidence of insurability is required. If you have never enrolled in an optional life insurance plan (supplemental, spousal and/or dependent child[ren]), you can enroll; however, evidence of insurability is required at dollar one of the life insurance election. You can enroll in or change your current personal accident insurance election with no evidence of insurability required.

WHAT IS THIS YEAR’S OPEN ENROLLMENT TIMELINE? Personalized open enrollment packets were mailed to faculty and staff on Friday, October 21, 2016. All completed open enrollment materials are due to HRD by 4:30pm on Friday, November 18, 2016. Open enrollment benefit elections become effective January 1, 2017.

Q & A’s Thank you for attending the town hall meeting. We hope you found the information useful.