Anderson University Employee Benefits Presentation January, 2016

2016 Medical Plan Overview Medical –Carrier: GuideStone –Slight change $3500/$7000 plan

Health Saver 2500/5000 Plan Summary Effective Network BenefitsNon-Network Benefits Your costs are summarized below Deductible Individual$ 2,500 Family$ 5,000 Coinsurance10%40% Out-of-Pocket Maximum Individual$ 3,000$ 5,000 Family$ 6,000$ 10,000 Physician Office Visit10% after deductible40% after deductible Specialist Office Visit10% after deductible40% after deductible Preventive Care0%40% after deductible

Health Saver 2500/5000 Plan Summary Effective Network BenefitsNon-Network Benefits Your costs are summarized below Retail Prescription Drugs Generic Formulary10% after deductible40% after deductible Brand Formulary10% after deductible40% after deductible Non-Formulary10% after deductible40% after deductible Mail Order Prescription Drugs Generic Formulary10% after deductibleNot Covered Brand Formulary10% after deductibleNot Covered Non-Formulary10% after deductibleNot Covered Hospital Services10% after deductible40% after deductible Out-Patient Services10% after deductible40% after deductible Maternity Services10% after deductible40% after deductible Emergency Room Services10% after deductible Urgent Care Centers10% after deductible20% after deductible

Health Saver 3500/7000 Plan Summary Effective Network BenefitsNon-Network Benefits Your costs are summarized below Deductible Individual$ 3,500 Family *($6,850 per Individual)$ *7,000$ 7,000 Coinsurance20%40% Out-of-Pocket Maximum Individual$ 4,000$ 4,500 Family *($6,850 per Individual)$ *8,000$ 9,000 Physician Office Visit20% after deductible40% after deductible Specialist Office Visit20% after deductible40% after deductible Preventive Care0%40% after deductible

Health Saver 3500/7000 Plan Summary Effective Network BenefitsNon-Network Benefits Your costs are summarized below Retail Prescription Drugs Generic Formulary20% after deductible40% after deductible Brand Formulary20% after deductible40% after deductible Non-Formulary20% after deductible40% after deductible Mail Order Prescription Drugs Generic Formulary20% after deductibleNot Covered Brand Formulary20% after deductibleNot Covered Non-Formulary20% after deductibleNot Covered Hospital Services20% after deductible40% after deductible Out-Patient Services20% after deductible40% after deductible Maternity Services20% after deductible40% after deductible Emergency Room Services20% after deductible Urgent Care Centers20% after deductible

What is an HSA Tax-advantaged checking account that works in conjunction with your CDHP Allows you to save for future medical expenses or pay current ones

Health Savings Accounts Overview To Qualify for a Health Savings Account (HSA) you must meet the following: –HSA’s can only be offered with a Consumer Driven Health Plan (CDHP). –Cannot be covered under traditional health plan, including Medicare, Tricare, or an FSA Medical Reimbursement plan. –Cannot be claimed as a dependent on someone’s tax return.

HSA Features Tax Advantages –Tax free way to save for current and future medical expenses. –Contributions are pre-tax or tax-deductible up to annual HSA limits. –All earnings and interest are tax free. –Qualified withdrawals are tax free. Once reach age 65, nonmedical withdrawals are taxed at your current tax rate, like an IRA.

HSA Features HSA is fully Portable. Ability to Accumulate funds – “Use it or Keep it!”. HSA funds can be used for items not covered by health plan such as; dental, vision etc. Same as an FSA plan. Lower health plan premiums than traditional PPO plans.

Funding Your HSA The HSA can be funded: –In one or more payments –Via payroll deductions Elections can be stopped, started, and/or changed anytime –By the employee, employer, or any other person on the employee’s behalf –Prior to the individual’s tax filing deadline (generally, April 15 th of the following year)

Employee$ 500 Employee + 1$ 750 Employee + 2$1,000 AU’s Annual HSA Contribution for 2016

HSA Contributions IRS Maximum 2016 contributions –Self $3,350 –Family $6,750 –Catch up contribution $1,000 for those 55 and older

Who is Eligible to Use my HSA Funds You can spend your HSA dollars on qualifying expenses for: –Yourself –Your spouse –Anyone you claim as a dependent on your personal income tax (Your child(ren) may qualify to be covered under your medical plan but NOT qualify to use your HSA funds). Note: Your spouse and dependent(s) do NOT have to be covered under your CDHP plan to be eligible to use funds from your HSA account.

HSA Distributions Pre-65 HSA owner: Qualified Distributions will be tax free. Non-Qualified Distributions will require individual to pay their personal tax rate on purchase and a 20% penalty. Post-65 HSA owner: Qualified Distributions will be tax free. Non-Qualified Distributions will require individual to pay their personal tax rate on purchase (No IRS Penalty)

What Happens if I Am Enrolled in the CDHP When I Turn 65 At age 65, you have two options: You may enroll in Medicare Part A; however, you will NOT be eligible to make or receive HSA account contributions from that point forward. You may be able to receive the AU contribution to an FSA account. You may choose NOT to enroll in Medicare Part A, and you will still be able to make and receive contributions to your HSA account.

Rx ‘n Go –You will continue to have the option to receive up to a 90 days’ supply of preventive generic maintenance drugs by mail at no cost to you through Rx ‘n Go. –Over 500 generic drugs are available on the Anderson University Preventive Drug List. Generic prescription drugs covered by our Preventative Drug List and available through Rx ‘n Go will be provided to you at no cost. –To learn what drugs are on our Preventative Drug List please see or call to speak to a Rx ‘n Go customer service associate.

2016 Dental Benefit Overview Dental –New Carrier: Delta Dental –Larger network of providers (two provider levels) –No change in premium contributions –Generic ID cards will be distributed by Human Resources –Dependent children are eligible to age 19 or to age 24 if a full- time student –Search for providers at: er.ccl er.ccl

Dental Plan Summary Effective Network BenefitsNon-Network Benefits Your costs are summarized below Deductible (Applies only to Major Services) Individual$ 50 Family$ 150 Annual Plan Maximum$ 900 Preventive Services Diagnostic Services80% Preventive Services80% Emergency Palliative Treatment80% Basic Services X-rays80% Oral Surgery80% Endodontics80%

Dental Plan Summary Effective Network BenefitsNon-Network Benefits Your costs are summarized below Major Services Prosthodontics50% Major Restorative50% Orthodontia Separate Ortho Deductible60% Ortho Lifetime Max$ 900 Ortho Eligibility Child, 19 years or younger Non-network charges are subject to reasonable and customary fees. Charges above R&C are the patient's responsibility. Provider Directorywww.deltadental.com

Delta Dental Premier negotiated fees no balance billing acceptance of processing policies 186,000 dentist locations Nonparticipating no discounts no discounts balance billing balance billing Delta Dental Network Delta Dental PPO significant discounts no balance billing acceptance of processing policies 108,000 dentist locations Delta Dental Network PPO DentistPremier DentistNonparticipating Dentist Class II payment example for: Filling - Amalgam Restoration/One Surface (assuming any applicable deductible has been met) Submitted Fee:$ PPO Fee Schedule amount:$68.00 Delta Dental pays 80% of the PPO Fee Schedule amount:$54.40 Member pays:$13.60 The PPO dentist cannot charge the $52 difference between the PPO Fee Schedule amount and his/ her fee. Submitted Fee:$ Maximum Approved Fee:$ Delta Dental pays 80% of the Maximum Approved Fee:$88.80 Member pays: $22.20 The Premier dentist cannot charge the $9 difference between the Maximum Approved Fee and his/her fee. Submitted Fee:$ Nonparticipating Dentist Fee:$92.00 Delta Dental pays 80% of the Nonparticipating Dentist Fee:$73.60 Member pays:$46.40 Because the dentist does not participate, you are responsible for the difference between Delta Dental’s payment and his/her fee.

2016 Vision Plan Overview Vision –Carrier: Superior Vision –No change in plan design –Children eligible to age 26

Vision Plan Summary Member In-Network Cost Your costs are summarized below Exam – Every 12 months Ophthalmologist$ 10 Co-Pay Optometrist$10 Co-Pay Frames – Every 24 months $130 allowance Standard Plastic Lenses – Every 12 month Single Vision$25 Co-Pay Bifocal$25 Co-Pay Trifocal$25 Co-Pay Contacts (in lieu of glasses)$120 allowance

Flexible Savings Account (FSA) With an FSA plan, you elect to have a certain dollar amount withheld from your paycheck so you can pay for health care and dependent care expenses with pre- tax money. Eligible expenses include your unreimbursed medical expenses, including deductibles, co-pays, co- insurance, and childcare expenses! “Use it or Lose it Rule” – If you do not use all of your FSA funds they will be forfeited at the end of the plan year.

2016 FSA Accounts Cond’t Flexible Spending Accounts –Unreimbursed Medical FSA Account Employee who waive medical coverage Employees who enroll in a medical plans option but do not qualify to make or receive HSA contributions –Limited Purpose FSA Account Employee who have an HSA account (Dental and Vision expenses only) –Dependent Daycare FSA Account All employees with qualified daycare expenses

Employee$ 500 Employee + 1$ 750 Employee + 2$1,000 AU’s Annual FSA Contribution for 2016 Employees who enroll in one of AU’s medical plan options but do not qualify to make and receive contributions to an HSA, AU will make a contribution, based on the above schedule, to an FSA account.

IRS Form 1095-B As mandated by the Affordable Care Act, all employees eligible for medical benefits in 2015 will receive IRS Form 1095-B at the beginning of 2016 This form will provide information to be utilized in the filing of your 2015 income tax return 27

Dependent Social Security Numbers In order for GuideStone to provide form 1095-B, they must have Social Security Numbers for your covered dependents If you have not provided the correct Social Security Numbers for your covered dependents in the benefitsCONNECT system, please add this information during open enrollment

Enrollment Instructions On-line enrollment system: benefitsConnect hosted by Transcend Technology Systems Passive enrollment – All 2015 election rolled over for 2016 with the exception of HSA and FSA elections. These must be elected for Open Enrollment: 11/2/15 – 12/2/15

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