EHA Early Retiree Plan Benefit Options

INTRODUCTIONS Greg Long – EHA Field Representative Kent Trelford-Thompson – BCBSNE Account Executive Bobbi Hannigan – Union Bank

AGENDA Plan & Rate Renewal Benefit Changes $750 PPO Plan $1,650 PPO Plan $3,100 High Deductible Health Plan Health Savings Accounts How to Enroll

EHA Rate Renewal The Medical rates for all Early Retiree categories will increase by 9.44%. The Dental rates for all participants will increase by 5.94%. 4

2013/14 Plan Rates/Early Retirees EHA Early Retiree Renewal Rates Health Coverage - RetireesEmployee Employee & Child(ren) Employee & Spouse EE, Spouse & Child(ren) $750 Deductible - Retirees$566.28$1,003.86$1,189.19$1, $1,650 Deductible$477.79$846.98$1,003.35$1, $3,100 Deductible HSA-Eligible$477.79$846.98$1,003.35$1,268.30

Early Retiree Rate Comparison Plan Information EmployeeEE& Children EE & Spouse EE & Family $750 Plan $566.28$1,003.86$1,189.19$1, $1,650 PPO & $3,100 HDHP Benefit Options (Rates Same) $477.79$846.98$1,003.35$1, Difference in Cost Monthly Annually $88.49 ($1,061.88) $ ($1,882.56) $ ($2,230.08) $ ($2,820.24)

Benefit Changes Deductibles  The $600 Deductible Plan will become a $750 Deductible Plan.  The Dual Option $1,500 Deductible Plan will become a $1,650 Deductible Plan.  The Dual Option $2,850 Deductible Plan will become a $3,100 Deductible Plan.  Out ‐ of ‐ Network deductibles will be adjusted to retain the current relationships to in-network amounts. 7

Benefit Changes Coinsurance Out ‐ of ‐ Pocket Maximums  The maximum on the $750 Deductible Plan will increase to $2,250 employee and $4,500 family.  The maximum on the Dual Option $1,650 Deductible Plan will increase to $3,250 employee and $6,500 family.  There is no in ‐ network coinsurance on the Dual Option $3,100 Deductible Plan.  Out ‐ of ‐ Network coinsurance maximums will be adjusted to retain the current relationships 8

Benefit Changes Copays a. The current $35 primary physician copay will decrease to $30. b. The current $35 specialty physician copay will increase to $50. c. The current $35 urgent care physician copay will increase to $50. d. There will be a new $75 copay on emergency room visits. e. On the Dual Option $1,650 Plan, the current $50 physician copay will be changed to copays of $45, $65, $65 and $90 for primary physician, specialty physician, urgent care and emergency room, respectively. f. There will continue to be no copays on the $3,100 HSA eligible Plan. 9

$750 PPO Plan Option Deductible: $750 Employee Only or $1,500 Family Coinsurance 80% / 20%: $2,250 Employee Only or $4,500 Family Office Visit Copay: $30, $50, $50, $75 Routine Care Benefit: Expanded Benefits due to PPACA. Pharmacy Benefit: Generic 25% Coinsurance ($5 Min $25 Max) Formulary Brand 25% Coinsurance ($30 Min $60 Max) Non-Formulary Brand 50% Coinsurance (60 Min $90 Max)

$1650 PPO Plan Option Deductible: $1,650 Employee Only or $3,300Family Coinsurance 70% / 30%: $3,250 Employee Only or $6,500 Family Office Visit Copay: $45, $60, $60, $90 Routine Care Benefit: Expanded Benefits due to PPACA. Pharmacy Benefit: Generic 30% Coinsurance ($7 Min $30 Max) Formulary Brand 30% Coinsurance ($35 Min $70 Max) Non-Formulary Brand 50% Coinsurance (60 Min $90 Max)

High Deductible Health Plans What they are: PPO and Rx plan that meets specific Federal requirements Consumer Driven Health Insurance Advantages 1. Lower Premiums 2. Coverage for serious illness or injury 3. Earnings and Investments % coverage 5. Put up to 100% of your deductible in an HSA.

$3,100 HDHP/HSA Deductible: $3,100 Employee Only or $6,200 Family Coinsurance 100% / 0% $0 employee only or $0 Family. Office Visit Copay: Applies to Deductible Routine Care Benefit: Expanded Benefits due to PPACA. Pharmacy Benefit: Applies to deductible. NOTE: Any coverage other than Employee Only the entire family deductible must be reached prior to benefits being paid at 100%.

Maximum Plan Out of Pocket $750 PPO option: $3,000 Single/$6,000 Family $1,650 PPO option: $4,900 Single/$9,800 Family $3,100 HDHP: $3,100 Single/$6,200 Family *All PPO plans have an additional Rx maximum copay of $2,500 Single/$5,000 Family ($3,100 HDHP Rx max is included in the deductible)

Plan Benefit Comparison $750 Deductible$1,650 Deductible$3,100 HDHP/H S A Deductible $750$1,650$3,100 Coinsurance $2,250$3,250$0 Office Visit PCP) $60$90Deductible Prescription Drug Brand Name (times 12) ($45 per month) $540 Deductible Out of Pocket $3,600$5,530$3,100

Example of Out-of-Pocket Cost Hypothetical Out-of-Pocket Expense $750 PPO $1,650 PPO $3,100 HSA Allowable Charge Is $250 Members Cost Share $250 Members Cost Share $250 Members Cost Share $250 Allowable Charge Is $750 Deductible = $750Members Cost Share $750 Members Cost Share $750 Allowable Charge Is $2,000 Deductible = $750 20% of $1,250 = $250 $1000 Deductible = $1,650 30% of $350 = $1050 $1,755 Members Cost Share $2,000 Allowable Charge Is $35,000 Deductible = $750 Coins = $2,250 $3,000 Deductible = $1,650 Coins = $3,250 $4,900 Deductible = $3,100

Health Savings Accounts Bobbi Hannigan, Health Savings Account Coordinator Union Bank & Trust 17

How to Enroll By Mid-July, eligible participants will receive information from BCBSNE: Call or Submit the Application by August 5 to ensure coverage for September 1. If changing to the HDHP/$1,500 PPO on January 1st, must have the application completed by December 2, 2013.

Key Points to keep in Mind Once you move to a higher deductible, you cannot move back to a lower deductible option Enrollment for the HDHP can be either September 1 or January 1. Annual Membership Dues are for September 1- August 31. No additional dues are charged for changes Members receive tax reduction of between 15%-35% depending on their status

Key Points to Remember If you move to one of the higher deductible plans, you must stay on that option for 3 years or until you reach the age of 65. HSA Accounts provide Triple Tax Savings Application Deadlines: For September 1, August 5, 2013 For January 1, December 2, 2013 EHA Customer Service Other questions you can call: 20

Contact Information Greg Long – EHA Field Representative (402) (Kent Trelford-Thompson Account Executive BCBSNE (402)

Questions? Thank you!