AuSable Valley Employee Benefits Meeting 2017

Introductions The Team: Presented by: Kevin Elliott Account Executive Julie Hock Group Benefits Coordinator/Executive The Team: Kevin Elliott Julie Hock Nancy Swiatowy

Today’s Agenda Review health care coverage Assess health care trends and health care review process Overview of benefit plan changes and rates Learn how to maximize your benefits Review other benefits Voluntary Dental coverage Long-term disability Life insurance Understand next steps Open Enrollment Video

Rising Health Care Costs: A National Trend Why are health care costs increasing? Aging population Increased utilization and consumer demand Reduction in provider discounts Increase in prescription drug costs Consolidation of managed care companies New medical technology Did you know: A can of coke has 150 calories, all from sugar. You would have to run for about 30 minutes to burn off those extra calories.

Health Care and AuSable Valley The Review Process Claims Analysis Deductible Utilization Prescription drug utilization Preventative benefits Premium Increase 2017-6.14% increase Public Act 152 Hard Cap – 3.3% increase

Plan Design Changes HSA 2000 HSA 3000 PPO 4000 Same plan as 2016 New Plan: Higher deductible Lower monthly premium than the HSA 2000 option PPO 4000 New Plan: “Standard Plan” Highest deductible No monthly premium Doctor Copay/Prescription Coverage before deductible

Plan Designs: At-A-Glance   Simply Blue HSA 2000/20% Aggregate Simply Blue HSA 3000/20% Embedded Simply Blue $4,000 General Plan Information     Annual Deductible $2,000/$4,000 $3,000/$6,000 $4,000/$8,000 Coinsurance 20% 30% Annual Out-of-Pocket Limit   $6,350/$12,700 Office Visit Covered 80% after deductible. $30 Spec/Urgent/ER $50/$150/$60 Prescription $10/$40/$80 after deductible. $15/$50/50%/20%/25%

2017 Rates Monthly HSA 2000 HSA 3000 PPO 4000 Single $91.58 $76.05 $0.00 2 Person $178.83 $111.54 Family $192.31 $152.10

HSA Benefits Company Provided Contribution HSA 2000 (one time) HSA contribution dollar for dollar match/monthly for both plans How it is paid: 3 equal installments in January, May and September Per pay period based on your personal contribution Single $125.00-TOTAL $42.00 installments $500.00-TOTAL $167.00 installments $85.00- maximum 2 Person $250.00-TOTAL $84.00 installments $1000.00-TOTAL $333.00 installments $170.00-maximum Family

HSA Contribution Limits 2017 2017 limits: (combination of AVCMH and employee contribution and AVCMH match) $3,400 for individual coverage $6,750 for family and 2-person coverage For individuals ages 55-plus, the IRS allows additional “catch- up contributions.” Eligible individuals may contribute an extra $1,000 for the year.

Aggregate vs Embedded Deductible Aggregate Deductible: (HSA 2000) There is not an individual deductible embedded in the family deductible. In this situation, before your insurance helps you pay for any of your medical bills the entire amount of the deductible must be met first. It can be met by one family member or a combination of family members however there are no benefits until expenses equaling the deductible amount have been incurred. Embedded Deductible: (HSA 3000) If you are on a family medical plan with an embedded deductible, your plan contains two components, an individual deductible and a family deductible EXAMPLE: If you, your wife and daughter are on a family plan with a $6000 family embedded deductible, and the individual deductible is $3000, if your daughter incurs $3000 in medical bills, her deductible is met and any subsequent medical bills for your daughter that year, your insurance will help pay even though the family deductible of $6000 has not been met yet.

Comparison 1-Based on Single  Hospital Bill $10,000.00 Simply Blue HSA 2000/20% Premium-$91.85/month Simply Blue HSA 3000/20% Premium-$76.05/month Simply Blue $4,000 $0.00/month General Plan Information     Deductible you pay toward the bill: Coinsurance % $2,000 20% $3,000 $4,000 30% Total amount paid with deductible and coinsurance $5,800 Annual Out-of-Pocket Limit   $6,350 Yearly Premium $1102.20 $912.60 $0.00 HSA One Time Contribution $125 $500 Total out of pocket based on this example: (including premiums) $3977.20 $4412.60 $5,800.00 HSA Tax Savings on Deductibles and Copays not included in this example

HSA Tax Savings on Deductibles and Copays not included in this example Comparison 1-Based on Family(2-Person) –example showing one person meeting deductible  Hospital Bill $10,000.00 Simply Blue HSA 2000/20% Premium-$91.85/month Aggregate Simply Blue HSA 3000/20% Premium-$76.05/month Embedded Simply Blue $4,000 $0.00/month General Plan Information     Deductible you pay toward the bill: Coinsurance % $4,000 20% $3,000 30% Total amount paid with deductible and coinsurance $5,200 $5,800 Annual Out-of-Pocket Maximum  $6,000 $6,350 Yearly Premium $1102.20 $912.60 $0.00 HSA One Time Contribution $250 $1000 Total out of pocket based on this example: (including premiums) $6,052.20 $3912.60 $5,800.00 HSA Tax Savings on Deductibles and Copays not included in this example

Comparison 2-Based on Single  3 Doctor Visits ($150 each) and Wellness Physical Simply Blue HSA 2000/20% Premium-$91.85/month Simply Blue HSA 3000/20% Premium-$76.05/month Simply Blue $4,000 $0.00/month General Plan Information     Deductible you pay toward the bill: Coinsurance % $2,000 20% $3,000 $4,000 30% Total amount paid with deductible and coinsurance $450.00 3 office visits and $0.00 for Wellness Physical $90.00 3 office visits with $30 copay and $0.00 for Wellness Physical Annual Out-of-Pocket Limit   Yearly Premium $1102.20 $912.60 $0.00 HSA One Time Contribution $125 $500 Total out of pocket based on this example: (including premiums) $1427.20 $826.60 HSA Tax Savings on Deductibles and Copays not included in this example

Comparison 2-Based on Family(2-Person)  3 Doctor Visits ($150 each) and Wellness Physical Simply Blue HSA 2000/20% Premium-$91.85/month Aggregate Simply Blue HSA 3000/20% Premium-$76.05/month Embedded Simply Blue $4,000 $0.00/month General Plan Information     Deductible you pay toward the bill: Coinsurance % $2,000 20% $3,000 $4,000 30% Total amount paid with deductible and coinsurance $450.00 3 office visits and $0.00 for Wellness Physical $90.00 3 office visits with $30 copay and $0.00 for Wellness Physical Annual Out-of-Pocket Limit   Yearly Premium $1102.20 $912.60 $0.00 HSA One Time Contribution $250 $1000 Total out of pocket based on this example: (including premiums) $1302.20 $326.60 HSA Tax Savings on Deductibles and Copays not included in this example

Comparison 3-Based on Family(2-Person) –example showing more than one person getting services toward deductible  Hospital Bills $10,000.00-Person A $5,000-Person B Simply Blue HSA 2000/20% Premium-$91.85/month Aggregate Simply Blue HSA 3000/20% Premium-$76.05/month Embedded Simply Blue $4,000 $0.00/month General Plan Information     Deductible you pay toward the bill: Coinsurance % $4,000 20% $6,000 30% Total amount paid with deductible and coinsurance $6,200 $7,800 $10,100 Annual Out-of-Pocket Maximum  $6,000-max you could pay for the year $8,000 –max you would pay in the year $12,700 –max you would pay in the year Yearly Premium $1102.20 $912.60 $0.00 HSA One Time Contribution $250 $1000 Total out of pocket based on this example: (including premiums) $6,927.20 $7,712.60 HSA Tax Savings on Deductibles and Copays not included in this example

How to choose the right plan… Know your medical/claims history Know your budget Crunch the numbers Don’t let the premium trick you Diebold Insurance will be available December 1-2 if you have questions or need help deciding

Preventative Benefits Preventive services keep you healthy Immunizations and flu shots can stop illnesses before they have a chance to start. That one trip to the doctor can save you many more down the road.  Health screenings and wellness exams can discover problems you may not know you have. Finding them early before they have a chance to get worse means they’ll be easier and cheaper to treat. These preventive services can potentially save your life

Preventative Benefits Preventive services are free You won’t have to worry about a copay, coinsurance or your deductible, as long as you see an in-network doctor and your visit is just about preventive care. You might have to pay out-of-pocket expenses if: You receive other services during the same visit that are not preventive The services are used to treat, diagnose or monitor an illness, injury or health problem

Qualified HSA Medical Expenses Examples of qualified medical expenses include: Most medical care that is subject to your deductible (copays, coinsurance, doctor visits, inpatient or outpatient treatment, etc.) Prescription drugs Over-the-counter drugs, only if you obtain a prescription Insulin (with or without a prescription) Dental and vision care Select insurance premiums COBRA, qualified long-term care insurance, health insurance premiums paid while receiving unemployment benefits, health insurance after you turn 65 except for a Medicare supplemental policy For a complete list please see Publication 502-irs.gov Did you know: you will burn 7% more calories walking on hard dirt than on pavement.

Flexible Spending Account (FSA) Highlights Pre-tax program for medical and dependent care expenses Medical expenses: you can contribute up to $2600 per year Can only be used if you have the “standard plan” PPO 4000 Dependent care expenses: you can contribute up to $5000 per year You must re-enroll each year www.basiconline.com Did you know: Stretching when you first wake up can boost circulation and digestion and helps to ease back pain.

Qualified FSA Medical Expenses Examples of qualified medical expenses include: Deductible and copayments for group health and/or dental plan Eye exams, eyeglasses and contact lenses Hearing exams and hearing aids Exams and treatments that exceed the annual frequency covered by the plan (example: physical exams in excess of one per year) Prescription drugs Medical equipment and supplies (such as crutches, bandages and diagnostic devices) Insulin and blood sugar test kits For a complete list please see Publication 502-irs.gov

Voluntary Dental Plan Highlights   Delta Dental of Michigan General Plan Information     Annual Deductible None Maximum per person per calendar year– diagnostic & preventive, basic, and major services $1,000 per person Lifetime Orthodontia Maximum per Patient Covered Services Diagnostic and Preventive Services 50% Basic Services Major Services Orthodontic Services– up to age 19

Voluntary Dental Plan Rates Monthly Dental Premiums Plan remains the same as the 2016 Delta Dental Plan Estimated based on 35% enrollment Single $17.54 Double $35.89 Family $68.68 Did you know: Typically the longer the ingredient list and the harder it is to pronounce the words, the less healthy it is for you.

Company-paid Benefits Long-term Disability (LTD) 60% of Earnings with max of $6,000 180 Day Elimination Period See Employee Benefit Book for more details Life and Accidental Death & Dismemberment (AD&D) $25,000, see Employee Benefit Book for more details Who is your beneficiary??

Enrollment Periods Initial Enrollment Period Open Enrollment Period— Newly eligible employees enroll in coverage Open Enrollment Period— ENDS December 2, 2016 Eligible employees may enroll in coverage for the upcoming plan year Mid-year Enrollment Periods Employees enroll for coverage during the plan year (often triggered by major life events, such as marriage or having a baby)

Resources Mobile App Demo Digital Tools and Resources www.bcbsm.com Manage Your Health & Wellness 24/7 Online Health Care Shop for Deals Compare Doctors/Facilities EOB’s online Mobile App Demo

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