Open Enrollment 2017

Benefits Review What is changing What is staying the same

What is changing? HSA prefund and contribution limits Pacific PPO and EPO deductibles, co-pays and/or co-insurances and premiums. FSA increase per 2017 IRS limits from $2550 annually to $2600.

Pacific’s HSA Contributions Pacific will pre-fund 3 months of the employer contributions to the HSA’s for current employees the second week of 2017 Pre-fund is $312.50 for single and $625 for single + 1 or family 2017 IRS limits allow HSA contributions up to $3,400 for single coverage

Pacific Preferred Provider Organization (PPO) Increase copay from $100 to $250 for emergency room and hospital admission These copays apply after the PPO deductible has been satisfied. The employee share of premiums increased

Pacific Exclusive Provider Organization (EPO) Increase from zero to $150 deductible for individual and $450(x3) for family per calendar year The deductible is waived for office visits and prescription copays. Increase out of pocket maximum from $500/$1500 to $1500/$4500 Increase coinsurance from zero to 10% up to the out of pocket maximum Increase copay from $100 to $250 for emergency room and hospital admission The employee share of premiums increased

What is staying the same 100% preventative care component in medical plans Prescription co-payment structure High Deductible plans have no plan changes or rate increases Kaiser HMO has no plan changes or rate increases Dental Insurance Vision Service Plan (VSP) Flexible Spending Accounts

Medical plan review Pacific Exclusive Provider Organization (Pacific EPO) 100% preventative care $20 copay office visit $250 for hospitalization or emergency room + 10% co-insurance $150/$450 deductible per year Same prescription coverage levels Out of pocket maximum is $1500/$4500 Unlimited lifetime maximum

Medical plan review, cont. Pacific Preferred Provider Organization (Pacific PPO) 100% preventative care Employee pays 20% in network and 30% out-of-network after deductible $250 for hospitalization or emergency room $300/$600/$900 annual deductible Same prescription coverage levels Out of pocket maximum $1,500/$4,500 Unlimited lifetime maximum

Medical plan review cont. Pacific High Deductible PPO Plan w/Health Savings Account (Pacific PPO w/HD & HSA) Low premiums 100% Preventative care 20% EE and 80% ER pays after deductible (in network) 30% EE and 70% ER pays after deductible (out of network) Incur In-network deductible- single $2,500, Family $5,000 before insurance pays (out of network same) Same prescription coverage after deductible Maximum Out-of-Pocket- single $5,000, Family $10,000 (separate for in and out-of-network) Unlimited lifetime maximum

Dameron Ambulatory Care $0 co-pays for PPO and EPO plans and reduced rates for PPO HD plan until deductible is met. Physician visit $0 co-pay Covered x-ray or lab $0 co-pay Prescriptions at Linacia Pharmacy $0 Preventative $0 co-pay

Plush Care Medical consultation with a primary health care provider over the phone Free for Pacific PPO and EPO plans $49 co-pay for PPO HD plan Call 866-460-6205

Medical plan review cont. Kaiser HMO 100% paid preventative care $20 office co-pay $100 Hospital co-pay $100 Emergency room co-pay No deductible Prescription coverage $10/$30 for 100 day supply Out of pocket maximum $1,500/$3,000 Unlimited lifetime maximum

Medical plan review cont. Kaiser High Deductible Plan w/Health Savings Account (Kaiser HMO HD w/HSA) No premiums 100% paid preventative care 10% employee 90% employer pays after deductible In-network $2,600, Family $5,200 Deductibles Deductibles reset every year Same prescription coverage after deductible Maximum Out-of-Pocket-single $5,200, Family $10,400(separate for in and out-of-network) Unlimited lifetime maximum

What is a Health Savings Account Allows you to set aside tax-free dollars to pay for qualified health care expenses New this year 3 month pre-fund ($312.50/$625) Unused dollars roll over into the next year Account balances earn interest tax-free You own your HSA – it moves with you if you change jobs or health plans

Who is eligible? Employees must be enrolled in a High Deductible plan Cannot be enrolled in another health plan Cannot be enrolled in Medicare Cannot be claimed as an IRS dependent by anyone Cannot be enrolled in both HSA and FSA in the same plan year

Health Saving Account (HSA) Pacific will contribute $1250 for single $2500 for single+ 1 Family (paid in equal 24 increments) Employee can contribute pre-tax NO use it or lose it rule-can roll over unused portion year after year Contributions – expenses = savings

How much can be contributed? – HSA continued 2017 Contribution Limits Single-$2,150 max EE contribution + $1,250 ER = $3,400 (employer $52.08 per pay) 2-Party or Family-$4,150 max EE contribution + $2,500 ER =$6,650 (employer $104.17 per pay) 55+ may “catch up” contributions by - $1,000 If enrolled mid-year and fund their HSA, employee’s must remain enrolled through the following calendar year to avoid a tax penalty

Tax savings of an HSA Pre-tax contributions Earnings are tax-free while the money remains in the HSA Withdrawals for qualified health care expenses are tax free HSA may transfer to the surviving spouse tax free After turning 65, HSA dollars may be withdrawn for any purpose, paying only normal income taxes with no penalties. Can be used to pay for Medicare Part A, B, D and Medicare HMO premiums (if Medicare premiums come out of your SS check you can reimburse yourself)

Advantages of Health Savings Accounts You decide how much money to set aside for health care costs You control how your HSA money is spent. Pacific contributes to your HSA, but you own the account. You don't pay federal taxes on employer contributions into your HSA( pay state)

Disadvantages to Health Savings Accounts Illness can be unpredictable-hard to accurately budget for expenses Information about the cost and quality of medical care can be difficult to find Challenging to put money into a HSA. If you use your health care more often you may not be able to save as much as someone who does not Pressure to save money in HSA might lead one to not seek medical care when needed Money withdrawn for nonmedical expenses is taxable

Rates-per pay period

Delta Dental PPO Preventative care paid 100% 3 cleanings per year Annual deductible $50/$150 Basic Services – after deductible 90% Major Service – after deductible 60% Annual maximum per person $2,000 Orthodontics (6 mo. waiting period) 50% after deductible, $2,000 lifetime max.

DeltaCare USA, DHMO No premiums Preventative care – 1 cleaning every 6 mo. No annual deductible Clearly defined out of pocket costs No restrictions on preexisting conditions Covers many diagnostic and preventative services at no cost No annual or lifetime maximums Orthodontics – no waiting period

VSP (Vision Service Plan) Annual deductible $25 Exams once per year 100% covered Lenses every 24 months 100% covered Frames every 24 months up to $120 covered

Voluntary Life Insurance Employees* - up to 5 times annual salary Spouses* - $10k to $50k in $10k increments Child*(ren) -$5k, $10k or $20k – single price for one or more children Spouse or child coverage can not exceed 50% of employee’s combined Basic and Voluntary Term life volume of coverage Includes equal amounts of AD and D coverage. *Proof of good health forms will need to be provided to vendor, who will decide if the insurance is granted or not.

Flexible Spending Accounts Set aside pre-tax dollars for qualified expenses Debit card issued with online access to balances Must enroll annually in this plan Health Care Account- $2,600 Maximum Annual Limit Dependent Day Care Account - $5,000 Maximum Annual limit $500 roll over only

Benefit Fairs Stockton – Thursday, November 3rd from 11-2 in the DeRosa Center Ballroom San Francisco – Tuesday, November 8th from 10-2 in the Executive Conference Rm 437 Sacramento – Wednesday, November 9th from 11-1 in Lecture Hall S2 and S3

Going forward Open Enrollment is November 1st through December 2nd Firm deadline of December 2nd for all enrollment change forms Look for your Open Enrollment materials that were sent to your home View our University Benefits website at: http://www.pacific.edu/About-Pacific/AdministrationOffices/Business-and-Finance-Division/Human-Resources/University-Benefits/2017-Open-Enrollment.html

Next steps Review Open Enrollment materials sent to your home Attend a benefits fair Ask questions Enroll in benefits the way you will use them Turn in enrollment change form to HR Continue to learn more about benefits

Open Enrollment November 1 - December 2 Questions?