1. KCTCS OPEN ENROLLMENT OCTOBER 12 – 26, 2015

2. The Kentucky Employee Health Plan (KEHP) meets all requirements of the Affordable Care Act (ACA). The PLAN provides affordable health care insurance that is offered to all employees. Employees may shop kynect (the state marketplace) for coverage. Purchasing coverage through kynect will disqualify the employee and dependents from receiving potential tax credits. HEALTH CARE REFORM The Affordable Care Act

3. The state non-tobacco user contribution rate is reduced by 25% to the employee. KCTCS personnel system employees pay reduced out-of-pocket monthly contributions. KCTCS picks up that additional 25% for the employee. The $50 Benefit Allowance is available to eligible employees to offset benefit expenses. KCTCS PERSONNEL SYSTEM The Contribution Strategy

4. The four health plan options remain the same – same benefits with no increase in rates for the third year in a row! NEW – Free optional enrollment in the national Diabetes Prevention Program for all health plan members NEW – Diabetes Value Benefit for diabetic health plan members NEW – See a doctor 24/7/365 online for free with LiveHealth Online What’s new? What’s changing? 2016 PLAN YEAR HIGHLIGHTS

5. Are you at risk for developing diabetes? Age 45 or older Overweight Family history of Type 2 diabetes Physically active less than three times/week Had diabetes while pregnant, or given birth to a baby weighing nine or more pounds DIABETES PREVENTION PROGRAM (DPP)

6. Opportunity to attend a program near you to lower your risk 16-week course; once a week for one hour Earn 350 HumanaVitality points Participation is free Receive individual and group support while improving health and reducing risk To find out if you are at risk, take the risk test at www.cdc.gov.www.cdc.gov Seven questions – no identifiable information required DIABETES PREVENTION PROGRAM (DPP)

7. One of KEHP’s highest cost medical conditions Can often be controlled with regular doctor visits and proper medication adherence For most maintenance diabetic prescriptions and supplies members will pay reduced co-pays and co-insurance no deductibles on diabetic prescriptions and supplies See page 28 in the KEHP Benefits Selection Guide for more information on these new costs DIABETES VALUE BENEFIT

8. Requires member to do one of two things: Promise to take the HumanaVitality Health Assessment (HA) between January 1 and May 1, 2016, OR Complete a HumanaVitality Check (Biometric Screening) between January 1 and May 1, 2016. You may do both and earn HumanaVitality points for both! THE LIVINGWELL PROMISE

9. If you did not complete your Promise for 2015, you will not be allowed to enroll in a LivingWell plan for 2016. If you do not complete your Promise between January 1 and May 1, 2016, you will not be allowed to enroll in a LivingWell plan for 2017. Both members of a LivingWell cross-reference payment plan must complete the Promise. Dependents MAY complete the Promise, but are not required to do so. THE LIVINGWELL PROMISE What if I don’t complete the Promise?

10. You MUST enroll in PeopleSoft Self-Service if you want to: Change your health insurance plan, coverage level or dependents in any way; Enroll in a new General Purpose or Dental/Vision Only health insurance waiver; Keep your current health insurance waiver; Enroll in a healthcare Flexible Spending Account (FSA) for 2016; Enroll in a dependent care FSA for 2016; Enroll in a new dental insurance plan; Change your current dental insurance plan, coverage level or dependents in any way; Drop your current dental insurance plan entirely; Enroll in the $50 Benefit Allowance, if eligible. In PeopleSoft Self-Service DO I NEED TO ENROLL FOR 2016?

11. You MUST enroll in KHRIS if you want to: Change your health insurance plan, coverage level or dependents in any way; Enroll in a Standard plan for 2016 because you failed to complete your LivingWell Promise in 2015 In KHRIS DO I NEED TO ENROLL FOR 2016?

12. KCTCS has been emailing info and instructions to your KCTCS email address. CHECK YOUR EMAIL!!! This is how we communicate with you! Information, forms and the 2016 DEI Benefits Selection Guide are available on the KCTCS website: insert web address here Department of Employee Insurance (DEI) has mailed information, including login IDs and instructions, to your home address of record. WHERE CAN I GET INFO? Where can I find more detailed instructions?

13. LivingWell Consumer Driven Health Plan (CDHP) LivingWell Preferred Provide Organization (PPO) Standard PPO Standard CDHP There is no “free” plan. Each plan has an employee contribution associated with it. THE PLANS

14. LivingWell Promise is required Covers 100% in-network preventive care Lowest co-insurance for member – 15% for in-network services Medical and Rx out-of-pocket dollars accumulate toward deductibles and out-of-pocket maximums Provides the embedded Health Reimbursement Account (HRA) Single receives $500; Couple, Parent + or Family receives $1000 Use toward deductibles and out-of-pocket maximums Reduces deductible by 40% and out-of-pocket maximum by 20% Remaining funds rollover to following year if enrolling in CDHP again Lowest annual out-of-pocket maximum; best co-insurance percentage LIVINGWELL CDHP

15. LivingWell Promise is required Covers 100% in-network preventive care Co-pays for some medical and all pharmacy services Rx co-pays have a separate out-of-pocket maximum to help cap costs Medical and Rx co-pays do NOT accumulate toward deductibles 2 nd lowest co-insurance by member – 20% for in-network services Lower deductibles, but higher monthly premiums Same out-of-pocket maximum as LivingWell CDHP No HRA funds to help reduce member costs! LIVINGWELL PPO

16. No LivingWell Promise is required Covers 100% in-network preventive care Pharmacy costs are 30% of the total in-network Rx cost within a minimum/maximum range Rx co-pays have a separate out-of-pocket maximum to help cap costs Medical and Rx co-pays do NOT accumulate toward deductibles 3 rd lowest co-insurance by member – 30% for in-network services Higher deductibles than LivingWell PPO No HRA funds to help reduce member costs! STANDARD PPO

17. No LivingWell Promise is required Covers 100% in-network preventive care Provides the embedded Health Reimbursement Account (HRA) Single receives $250; Couple, Parent + or Family receives $500 Use toward deductibles and out-of-pocket maximums Reduces deductible by 40% and out-of-pocket maximum by 20% Remaining funds rollover to following year if enrolling in CDHP again Medical and Rx out-of-pocket dollars accumulate toward deductibles and maximums Lowest premiums in exchange for higher deductibles The default plan at single coverage level for failure to elect or waive coverage. STANDARD CDHP

18. A multi-step process again this year: October 12 – 26 PeopleSoft Self Service Review each benefit and costs on the Enrollment Summary page October 12 – 26 KHRIS system Make any changes to health insurance or waivers as required Print and save your confirmation page November 2 – 13 Enroll in $50 Benefit Allowance through PeopleSoft Self-Service, if eligible SELF-SERVICE BENEFITS ENROLLMENT

19. Will be used again for 2016 enrollments of these benefits: Health (including waivers), Dental, Flexible Spending Accounts (FSA), Waiver HRAs, and $50 Benefit Allowance Follow the direct link on the KCTCS intranet, or log into PeopleSoft and go to Employee Self- Service. PEOPLESOFT SELF-SERVICE

20. Remember two things! First If you are changing ANYTHING about your health insurance enrollment, you MUST enter it in the KHRIS system. Failure to enroll for health insurance, if required, will result in automatic enrollment in the Standard CDHP Single coverage. Second Do NOT enroll for healthcare reimbursement or childcare reimbursement accounts (FSAs) through KHRIS. Enroll in FSAs through PeopleSoft Self- Service. KHRIS SELF-SERVICE

21. Once the online enrollment process is complete, print and save your confirmation page as proof of enrollment. If there is an email address on record for you, a confirmation message will be sent. See page 29 of the DEI Benefits Selection Guide for contact information to answer KHRIS questions. Your local HR representative will be unable to obtain your login ID or password, or answer questions about the KHRIS website. KHRIS SELF-SERVICE More info

22. Beginning, changing or ending a cross-reference payment option; Anyone making changes to a plan with a disabled dependent on the plan; Retirees who have returned to work and are age 65 or older; New employees hired between September 1 and October 31; KRS retirees with KRS-paid coverage who are making changes – contact KRS for its paper application. PAPER APPLICATIONS Who needs to fill one out?

23. Per federal law, employees must be enrolled in a group health plan that provides minimum value. Employees in another group health plan providing minimum value may choose to enroll in the Waiver General Purpose HRA, and Must attest in writing that they have other group health plan coverage that provides minimum value. Note: If you or your spouse or dependent is contributing to a Health Savings Account (HSA), consult a tax advisor prior to enrolling in a HRA or FSA. WAIVING HEALTH INSURANCE

24. Employees having coverage purchased through kynect or other governmental plans such as TRICARE, Medicare or Medicaid are not eligible for the Waiver General Purpose HRA. These employees may enroll in the Waiver Dental/Vision Only HRA or elect to enroll in a KEHP health plan. Members enrolling in the Waiver Dental/Vision Only HRA do not need to attest to enrollment in another plan. Note: If you or your spouse or dependent is contributing to a Health Savings Account (HSA), consult a tax advisor prior to enrolling in a HRA or FSA. WAIVING HEALTH INSURANCE (continued)

25. In addition to the HRA, an employee may fund a healthcare Flexible Spending Account (FSA) to cover unpaid qualified medical expenses such as deductibles, co-pays, co-insurance, dental, vision, etc. If you have both a FSA and a General Purpose Waiver HRA, reimbursement will be made from the FSA account balance first. The FSA balance is forfeited after the end of the plan year (12/31/16) and the 2-1/2 month grace period (3/15/17). The Waiver HRA will not roll-over if you elect to enroll in a health plan in 2017. FSA VS. HRA

26. Health Care Account (HCA) for medical expenses Minimum $5/paycheck (including $50 Benefit Allowance); maximum annual contribution increased to $2,550 for 2016. Per federal regulations, only $500 of employer contributions may be used to fund a FSA. Dependent Care Account (DCA) for dependent day care expenses Minimum $5/paycheck Maximum contribution based upon federal tax filing status, up to $4,992 FLEXIBLE SPENDING ACCOUNTS Two types of FSAs are available

27. Employees wishing to enroll in a FSA must do so every year – an IRS regulation. Enrollment must be made in PeopleSoft Self-Service FSA enrollees may use the Benny card for health expenses, or file a paper claim for health or dependent care expenses Claims for reimbursement can be made for any dependents up to age 26. Save your receipts! Substantiation for a Benny card charge may be required. FLEXIBLE SPENDING ACCOUNTS (continued)

28. Termination date for a FSA (and HRA) is the date employment ends or the date of retirement. Following termination of the FSA, you have 90 days to file paper claims for reimbursement of expenses incurred through the last date of service. Note: If you or your spouse or dependent is contributing to a Health Savings Account (HSA), consult a tax advisor prior to enrolling in a HRA or FSA. FLEXIBLE SPENDING ACCOUNTS (continued)

29. NO FSA carryover of $500 as stated in the DEI Benefits Selection Guide. KCTCS elects to use a “grace period” method instead of a “rollover” method to utilize prior year’s money Any amount of leftover money from 2015 may be used and claimed until 3/15/2016. You may use your FSA Benny card for grace period expenses. Reimbursements will automatically be applied to the correct year. FSA GRACE PERIOD

30. Maximum contribution is based on employee’s tax filing status Check the Chard-Snyder paper enrollment form for maximums Plan maximum is $4,992/year Reimbursement is done only by paper claim form Direct deposits of reimbursements is available Retirees not eligible to participate No “grace period” on Dependent Care FSA Does allow for a “run out period” – claims for 2015 must be filed within 90 days of December 31, 2015 DEPENDENT CARE FSA

31. Embedded HRA – LivingWell CDHP or Standard CDHP Administered by WageWorks and DEI WageWorks Healthcare VISA issued for use at local vendors New card will not be issued unless the old one has expired. Any remaining HRA money from the 2015 CDHP plan will rollover to the 2016 CDHP plan in April 2016 If you have 2015 expenses to claim in 2016, you MUST file a paper claim with WageWorks after January 1 for services rendered in 2015. You cannot use 2016 money to pay for 2015 expenses. HEALTH REIMBURSEMENT ACCOUNTS

32. General Purpose or Dental/Vision Only HRA Administered by Chard-Snyder Benny MasterCard issued for use at local vendors New cards will not be issued unless the old ones have expired. Any remaining money from a 2015 waiver HRA will rollover to the 2016 waiver HRA in April 2016 If you have 2015 expenses to claim in 2016, you MUST file a paper claim with Chard-Snyder after January 1 for services rendered in 2015. You cannot use 2016 money to pay for 2015 expenses. HEALTH REIMBURSEMENT ACCOUNTS

33. HRAs are not available to: A retiree who has gone back to work and elects coverage under a government retirement system; Retirees, or Spouses of a hazardous duty retiree. Note: If you or your spouse or dependent is contributing to a Health Savings Account (HSA), consult a tax advisor prior to enrolling in a HRA or FSA. HEALTH REIMBURSEMENT ACCOUNTS (continued)

34. Special note to employees having both a FSA and waiver HRA If all of your FSA money has been used for 2015 and you have money left from your 2015 HRA, you MUST file a paper claim after January 1 for services rendered in 2015. You cannot use 2016 money to pay for 2015 expenses Your Benny card does not know the difference between 2015 and 2016 money. HEALTH REIMBURSEMENT ACCOUNTS (continued)

35. A pharmacy tip for General Purpose waiver HRA users: If you waived because your spouse has health coverage elsewhere, use your spouse health plan card first to pay for prescriptions. Then use your HRA Benny card to pay any remaining co-pay or co- insurance amounts. This saves your HRA money for future use or rollover, instead of paying the bulk of that Rx cost with your HRA money. HEALTH REIMBURSEMENT ACCOUNTS (continued)

36. KCTCS employees will NOT Enroll for FSAs and/or Waiver HRA through the KHRIS site. If you have a FSA for 2015 and wish to continue it for 2016, you MUST re-enroll through PeopleSoft Self-Service. If you have a waiver in 2015 and wish to continue it for 2016, you MUST re-enroll through PeopleSoft Self-Service. If you have a FSA and/or a waiver in 2015, you do NOT need to re-enroll for these through the KHRIS site. FSA AND HRA Online enrollment

37. The IRS requires proof (substantiation) that expenses are qualified under the Plan Save your explanations of benefits (EOBs) from Anthem in case there is a request to verify an expense If a refund is issued for an expense paid by either a WageWorks or Benny card: The card should be credited by the provider. If the provider refunds the member directly either by cash or check, the member is required to refund the card, per IRS guidelines. If you have the Dental/Vision Only HRA, and want money specifically used from the FSA for dental or vision expenses, a paper claim form must be submitted to Chard-Snyder requesting such. FSA AND HRA SAVE YOUR RECEIPTS!!!

38. If you are enrolled in Medicare and waive your KCTCS health coverage: You are NOT eligible to enroll in the Waiver General Purpose HRA. You are eligible to enroll in the Waiver Dental/Vision Only HRA. You MUST enroll ALL your dependents who may have claims reimbursed under the Waiver Dental/Vision Only HRA. Federal reporting requirement Must enroll dependents through PeopleSoft Self-Service MEDICARE AND HRA

39. Available to KCTCS personnel system regular, fulltime employees enrolled in single healthcare coverage or waiving healthcare coverage May be used for: health or dental insurance premiums healthcare FSA (FSA enrollment must be completed in PeopleSoft Self- Service), or purchasing voluntary supplemental benefits Per federal regulations, only $500 of employer contributions may be used to fund a healthcare FSA Remaining $100 may be used to purchase another benefit or forfeited $50 BENEFIT ALLOWANCE

40. May not be used to purchase Group Life Insurance or Supplemental Long Term Disability Preplan your $50 Benefit Allowance (BA) election during Open Enrollment (October 12 –26) If you allocate all or part of the $50 BA to a FSA, you must enroll in the FSA during Open Enrollment from October 12 – 26. You will NOT be able to go back later to enroll. You will receive an email in early November if eligible to enroll in the $50 Benefit Allowance. Enrollment will be November 2 –13. $50 BENEFIT ALLOWANCE (continued)

41. Same three dental carriers for 2016: Delta Dental Dental Health Options by Health Resources Humana CompBenefits Verify your coverage as it is currently in PeopleSoft Dental coverage will “rollover” from 2015 to 2016 unless you make changes in PeopleSoft Self- Service. If you wish to add or drop family members, terminate coverage entirely or change carriers, Open Enrollment is the time to do it! Verify your dentist’s participation in the plan of your choice DENTAL PLAN ENROLLMENT

42. Health Insurance New ID cards will not be issued unless a plan change is made. New WageWorks HRA VISA card will be issued only if the card has expired. One WageWorks card per household is issued. Dental New cards issued only if coverage is changed. FSA/Waiver HRA Benny cards Issued to new enrollees or if the current card expires 12/31/15. Same card carries both the FSA and Waiver HRA balances. Remaining 2015 Waiver HRA balances do not rollover until April 2016. 2016 INSURANCE/BENEFIT CARDS Will I get new ones?

43. SOME MISCELLANEOUS “NEED TO KNOW” STUFF (SUBTITLED “THINGS WE OFTEN GET QUESTIONS ABOUT”)

44. All plans cover preventive services by a network provider without charging a co-pay or co-insurance, even if the annual deductible has not been met. Provides for such services as immunizations, preventive screenings, well- child and well-adult visits. “Preventive” is defined by the code the doctor uses to submit the billing to Anthem. PREVENTIVE CARE No cost and in-network

45. Dependents are eligible up to age 26 can be married (coverage does not extend to his/her spouse or children) does not have to reside with the planholder can remain on the parent’s plan regardless of eligibility through the dependent’s employer will be automatically dropped from the KEHP at the end of the month in which the dependent turns age 26 DEPENDENT ELIGIBILITY

46. QE applications must be signed within the prescribed QE time frame. QEs for cross-reference payment plans require Insurance Coordinator signatures from BOTH agencies. No exceptions! Supporting documentation must be submitted with the QE application. Coverage will not be activated until applicable documentation is received. Effective date of QE will be subject to federal guidelines; coverage may be activated retroactively QUALIFYING EVENTS Changes permitted outside the Open Enrollment period

47. The Commonwealth is committed to fostering and promoting wellness and good health practices in its workforce. Focus on tobacco use, not just on smoking Applies to spouses and dependents as well as the planholder KEHP provides support through Tobacco Cessation Programs Cooper Clayton 12-week program Kentucky Quit Line Rx from your physician TOBACCO USE DECLARATION

48. KTRS retirees MUST select coverage through the active employer (KCTCS) if returning to active employment KRS retirees MAY be ineligible for KRS coverage when returning to active employment and becoming eligible for KEHP coverage through KCTCS Consult KRS for specific guidance on a case-by-case basis RETIREES RETURNING TO WORK

49. No changes in rates for 2016 Paper applications must be completed and returned to your local HR Department. Enrollment is NOT done through PeopleSoft Self-Service or KHRIS Beneficiary information is NOT stored in PeopleSoft; it is stored in a paper file. No proof of insurability is required for an increase of one coverage level (for example, 2x to 3x salary) Employee must have an existing Optional Life and AD&D plan to increase coverage level Moving from Basic coverage ($20,000) to 1x salary does not satisfy this requirement LIFE/AD&D INSURANCE ENROLLMENT

50. Variety of vendors offering a variety of supplemental products AFLAC Colonial Life Insurance Washington National Life Insurance of Alabama Midland National Life AccuFlex Services, Inc. Premiums can be deducted semi-monthly from your paycheck. You may be able to use the $50 Benefit Allowance to purchase Enrollment is NOT through PeopleSoft Self-Service Submit paperwork to your local HR Department OTHER SUPPLEMENTAL VENDORS

51. Several initiatives that can be utilized HumanaVitality wellness program Vitality HealthyFood 5% off “Great for You” food at Wal-Mart free flu shots, along with preventive care Diabetes Prevention Program (DPP) myStrength™ to help manage stress and find balance in life KEHP WELLNESS BENEFITS

52. VitalsSmartShopper – enroll online at vitalssmartshopper.com Use the same login ID and password you used for Compass SmartShopper if you enrolled in that program last year Program enhancements for 2016 quality of service information out-of-pocket calculator automatically tied to your health plan NOT mandatory – YOU CHOOSE to whom or where you go for services Cash rewards range from $15 to $500, depending on procedure and location The list of eligible procedures changes is constantly updated $2.47 million dollars in savings to the plan for 2014 $280,335 in incentives earned TRANSPARENCY PAYS FOR YOU AND THE PLAN

53. Your first point of contact should be your HR Benefits Representative! (Enter your college contact information here) For assistance with DEI online access, use the contact numbers on page 29 of the 2016 Benefits Selection Guide Information specific to KCTCS, along with forms, are located on the KCTCS intranet site. NEED HELP? Here’s who you can contact