NMPSIA Benefits Program March 28,

Today’s Topics NMPSIA Overview Fund Balance Premium Changes PBM Request for Proposal Affordable Care Act Pending Rule Changes The Standard Special Enrollment ERISA Online Enrollment Update ERISA End of Month Processing Cutoff Questions & Answers 2

NMPSIA Today  Benefits and Risk Programs covering  Mandatory: 88 Public School Districts  Mandatory: 95Charter Schools  Optional: 25 Other Educational Entities 11 Staff Members

NMPSIA Board representation  2 classroom teachers from NEA  1 classroom teacher from AFT-NM  3 Governor appointees  1 Superintendents’ Association  1 School Business Officials  1 Educational Entities at Large  1 School Boards Association  1 Public Education Commission

Benefits Enrollment BenefitEmployees Covered Basic Life37,837 Additional Life11,441 Long Term Disability12,269 Medical23,921 Dental25,669 Vision21,553

FY 15 Benefits Request

Benefits Fund Balance DateFund Balance July 2012$28.4 million (audited) July 2013$31.6 million (audited) Percent Change+11.3% Fund Balance Committed in FY15 is $4.5M

Increases October 1, 2014 Medical (all plans):2.85% Applies to total premium (Er & Ee) UCCI Dental:No Change Davis Vision:No Change The Standard Life:No Change The Standard LTD: No Change 8

Monthly EE Increases Under $15,000$25,000 or over Pres High Single$3.18$5.09 Pres High Family$8.90$14.24 Pres Low Single$2.67$4.27 Pres Low Family$7.47$11.96 BCBS High Single$3.93$6.30 BCBS High Family$9.99$15.97 BCBS Low Single$3.30$5.28 BCBS Low Family$8.39$

Raise vs. Premium Increase Salary $35,000 3 % Raise $87 per month (before taxes) $57 per month (after taxes)

PBM Request for Proposals  IBAC PBM contract expires June 30, 2014  Request for Proposal (RFP) underway  Collectively, over $200 million in prescription drugs  New pages in Program Guide  Program Guide to be distributed late July 11

ACA Reminders  No Pre-ex starting July 1, 2014  “Small Large Employer” delay: July 1, 2016 for those with 50 – 99 FTE’s  Substitutes, and other variable hour employees offered medical only effective July 1, 2015 or July 1, 2016  Offer to 70% of 30 hour FTE in 2015, 95% in 2016  SBC’s & Exchange Notice distribution 12

Pending Rule Changes  Open Enrollment for Medical in the Fall with a Jan. 1 Effective Date (no more late enrollment)  A QE allows EE to enroll to medical (or enroll deps. within 31 days)  No more 61 days to provide missing supportive docs for deps.; Rule changing to 31 days  Coverage for deps. Effective the first of the month following date the missing supportive docs. are turned in 13

The Standard Special Enrollment  March 17 – April 21  Identify eligible employees never enrolled to Basic Life  Identify eligible employees never offered full benefits  Premium will appear on May bill  Special enrollment does not apply to substitutes or variable hour employees 14

Online Enrollment Update  Statewide rollout next month  Enrollment options tailored to school offerings  Deductions reflect each school’s contribution schedule  Simpler Employee logon 15

EOM Processing Cutoff  Average last day receipts are 135.  Two days before end of month is our suggested cutoff to appear on the bill  Urgent situations – contact your ERISA rep. 16

In Closing...  Thanks!  Questions?  Comments? 17