2014 USG Open Enrollment November 11 – 22, 2013

University System of Georgia 1 Agenda  Healthcare Plan  Voluntary Benefits  Communications  What employees will need to do  Affordable Care Act  Questions?

Projected Cost increases for 2014  Actuarial estimates forecast a projected increase of about 3.7% – mainly due to increased enrollment in the plan  Affordable Care Act Related Costs beginning in 2014 – approximately ($20M) –Reinsurance fees –Increased Enrollment due to individual mandate –Plan design changes 2

Goals for 2014 Healthcare Plan  USG and employees share projected 2014 cost increases  Make sure current employees are not penalized for increased costs due to ACA (budget request)  Begin introducing behavioral rewards and penalties –i.e. tobacco surcharge, increased co-pays for emergency room  Ensure USG is secondary payer for new Medicare- eligible employees 3

2014 Premiums – Good news!  No increase in premiums for employees enrolled in the BCBSGa plans  4.3% increase in premiums for employees enrolled in Kaiser  2014 Healthcare Monthly Premiums 4

Plan Changes – Open Access POS  Increase Emergency Room co-pay from $50 to $150  Prescription drug changes/programs: –Increase Preferred Brand Name prescription co-pay from $30 to $35 (messaging and to use generics! $10 for 30 day supply) –Add new Drug Therapies –Introduce Rational Med Program –Introduce Active Choice program; encourage employees on maintenance medications to use mail order pharmacy  Out-of-network deductible increase ($400 to $500 for single and from $1,200 to $1,500 for family)  Out-of-network annual maximums increase ($2,000 to $3,000 for single and $4,000 to $5,000 for family)  ACA requirement – co-payments for office visits and emergency room will be included in out-of-pocket maximum 5

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Plan Changes – HSA Open Access POS Plan (HDHP)  Increase Participant Co-insurance from 10% to 15%  Create an out-of-network deductible distinct from in-network - $2,500 for single and $5,000 for family  Add Mail Order Delivery option and encourage use of Mail Order delivery for maintenance medications 7

Plan Changes – BlueChoice HMO Plan  Increase PCP co-pay from $15 to $20  Add Mail Order Delivery option and encourage use of Mail Order delivery for maintenance medications  ACA Required plan change: Add annual out-of-pocket maximums of $6,350 for single and $12,700 for family 8

Plan Changes – Kaiser HMO Plan  Increase PCP co-pay from $15 to $20  ACA Required plan change: Add annual out-of-pocket maximums of $6,350 for single and $12,700 for family  Co-pays on Sr. Advantage plan are being changed to match active employee plan – decrease in premiums for retirees enrolled in this plan 9

ID Cards  Employees enrolled in the BSBSGa plans will receive new ID cards for 2014  Employees enrolled in the OA POS plan will not receive a new prescription ID card unless the enrollment is new for 2014; employees should continue using “Medco” pharmacy cards!  All employees enrolled in the Kaiser HMO plans will receive a new ID card in

Tobacco Surcharge  $50 per month tobacco surcharge will apply to spouses and dependent children 18+ enrolled in the healthcare plan per tobacco user  Active Open enrollment – all employees must certify tobacco use status in 2014  If an employee does not certify, their tobacco use status will default to tobacco user and $50 per month will be added to their healthcare premium  Encourage employees to quit using tobacco products! 11

New Medicare-Eligible Retirees in 2014  Current rule: Retiree/Spouse will enroll in Medicare Part B or pay full premium  2014: USG Plan will only pay as though Retiree/Spouse has Medicare (Secondary coverage)  Retirees who became Medicare Eligible prior to 1/1/14 and do not enroll in Medicare will pay either full premium or $100 additional premium 12

Wellness  Wellness Mini-Grants Awarded Georgia Gwinnett College Georgia Regents University University of West Georgia University of Georgia Kennesaw State University Columbus State University  2014: Institutions continue to promote wellness awareness on campuses  Additional Mini-grants available spring 2014  Base-line wellness added to healthcare plan anticipated

Voluntary Benefits 2014

New for 2014  System–Wide Voluntary Benefits program  All institutions offer the same set of voluntary benefits plans –Dental –Vision –Life and AD&D –Disability –FSA/HSA University System of Georgia 15

Project Highlights  Consolidated 130 different voluntary benefits plans down to 6 plans  100% employee paid except basic life  Steering Committee comprised of institution HR/Benefits leaders worked with System office to choose finalist vendors and recommend plan design  Savings estimated at approximately $4 million across all institutions University System of Georgia 16

Why change? Our new approach allows USG/institutions to offer benefits that are:  Higher Employee Value – achieved enhanced plan designs  Guaranteed premiums for 3-5 years  Uniform and consistent plans across all institutions  Reduced cost for USG and employees Goals of USG Benefits Plans –Recruit top faculty and staff –Provide benefits programs that offer real value for employees and their families –Invest in our employees health and well-being University System of Georgia 17

University System of Georgia 18 What’s new for 2014?  Brand for USG benefits –We provide You decide USG will provide competitive benefit choices Employees can decide which benefits fit their life –Consistent, recognizable brand identity for all USG Benefits communication pieces

University System of Georgia 19 What’s new for 2014?  Plan Benefits & Carriers –Dental – MetLife -> Delta Dental –Vision - EyeMed –Life and AD&D – CIGNA -> Minnesota Life –Disability – MetLife –FSA/HSA – US Bank

Dental – Delta Dental University System of Georgia 20 *Preventive services don’t count toward the deductible **Benefit limits on replacement dentures or crowns apply Coverage TierBase PlanHigh Plan Employee$24.82$30.66 Employee + Spouse$49.62$61.30 Employee & Child(ren)$47.12$58.24 Family$79.38$98.10

Vision – EyeMed In-NetworkOut-of-Network reimbursement Exam Benefits$10.00$40 Exam Frequency1 per 12 months Single Vision Lens$25.00$40 Lens Frequency1 per 12 months Frames Benefit$150$58 Frames Frequency1 per 12 months University System of Georgia 21 Coverage TierMonthly Premium Employee$6.38 Employee + Spouse$14.38 Employee & Child(ren)$12.14 Family$18.84

University System of Georgia 22 Supplemental Life and AD&D Minnesota Life  Supplemental Life and AD&D –1x – 8x salary with a maximum limit of $2.5M –No age reductions –Employees elect 1x without EOI during Open Enrollment  Spouse Life –Coverage options of $10,000 through $500,000 in $10,000 increments –EOI required for new or increased coverage during Open Enrollment  Child Life –$5,000, $10,000 and $15,000 coverage options –EOI not required  AD&D –Employee or Family coverage options of $10,000 to $500,000 –EOI not required

University System of Georgia 23 Short and Long Term Disability – MetLife  Short-term disability (STD) –14 day elimination period –60% of salary up to $2,500 per week –No Pre-ex –EOI for late entrants; waived for Open Enrollment –Benefits continue up to 11 weeks  Long-term disability (LTD) –90 day elimination period –60% of salary up to $15,000 per month –3/12 pre-ex –Benefits continue to SSNRA

University System of Georgia 24 FSA/HSA – US Bank HSA USG is paying the monthly account fees in 2014 Investment threshold set at $1, Match - $375/$750 FSA Limit of $2,500 New “limited-purpose FSA” for employees enrolled in HSA Limited-purpose FSA can be used for dental, vision and post-deductible medical expenses only

Use 2013 Health Care FSA funds before Jan. 1  For employees moving from an FSA to an HSA: –Employees are not allowed to contribute to an HSA while they have an active FSA. –Employees Health Care FSA balance must be $0 on or before January 1, 2014 or neither the employee nor USG will be allowed to contribute to new HSA until April 1,

USG has planned communications to help employees understand the new plan options …

Communication Pieces  Benefits Summary 27

Communication Pieces  Open Enrollment Newsletter University System of Georgia 28

Communication Pieces  Open Enrollment announcement(s)  Flyer and post cards  Comprehensive Benefits Summary Booklet  Video and Text messaging  Benefit specific flyers University System of Georgia 29

USG Website - Benefits  Redesign of site will be completed by October 21 st – could be earlier  Wellness site: University System of Georgia 30

What employees need to do 1.Opt in for text messaging 2.Attend a local Benefits Fair or Benefits Meetings (if available) 3.Review USG Open Enrollment materials 4.Enroll for benefits (and recertify their tobacco status) during the Open Enrollment – November 11 th – 22 nd ! University System of Georgia 31

Affordable Care Act

Affordable Care Act (ACA) Health Insurance Marketplace  Health Insurance Marketplace Notices will be mailed Friday to all employees (does not include retirees)  Notices must be provided in writing to all new hires beginning October 1, 2013 University System of Georgia 33

Health Insurance Marketplace  All individuals are required to have health coverage in 2014 or pay a penalty  If an employee is not eligible for health insurance through USG, he/she can enroll in health coverage through Federal Health Insurance Marketplace  Information is available through the Federal Health Insurance Marketplace website at Affordability & Tax Credit (or subsidies) through the Marketplace  If an employee is eligible for healthcare coverage through USG, generally the employee will not receive a subsidy if he/she enrolls in the new Health Insurance Marketplace instead of the USG plan since the HSA Open Access POS plan meets the Affordability requirements under the Affordable Care Act University System of Georgia 34

Questions?