1. University of St. Thomas 2017 Annual Enrollment Briefing

2. This presentation is intended to provide you with a general overview of the benefit plan options available through your employer.  The presentation will address the advantages and disadvantages of available plan options, but will not provide details regarding coverage for specific medications or treatments. For detailed coverage information, refer to the relevant plan document or policy.  Questions regarding your eligibility to enroll in a benefit plan should be addressed with your Human Resources or Benefits Department.
Say:
If using a presentation, it should be included within the presentation.
If no presentation is being used, this disclosure should be provided verbally.
Do:

3. Annual Enrollment Tuesday, November 1 through Monday, November 14h
“Passive” enrollment this year
Your current Medical, Dental, Vision and Life and AD&D Insurance elections remain the same
Health Care and/or Dependent Care Flexible Spending Account(s), and Health Savings Account (HSA) contributions need to be re-elected each year through the online annual enrollment system
Changes for most benefit plans are generally not allowed at any other time of the year unless you experience a “qualifying status” change.
The effective date for most changes is January 1, Life coverage changes that require evidence of insurability will be effective on the date approved by the insurance company.

4. Changes for 2017 Blue Cross Blue Shield changes
New ID cards, new member #, new group #, new phone number
New Blue Cross website and member portal
Claims paid in 2016 or earlier will NOT be viewable on the new portal for 2017 so keep your old card (write “OLD” across it to avoid confusion) if there is any chance you will want to review information or print EOBs from the old portal.
There is an increase to the cost for the medical plans - see chart on page 7 for details
The Health Savings Account (HSA) maximum annual contribution amount will increase to $3,400 for Single. The maximum remains at $6,750 for Employee+Spouse, Employee+Child(ren) and Family coverage.

5. BCBS Medical Plan Comparison (In-Network)
$500/$1,000 Deductible + Copay
$1,250/$2,500 Deductible
$2,600/$5,200 Deductible - HDHP
Deductible - Calendar Year
$500 Individual
$1,000 Family
$1,250 Individual
$2,500 Family
$2,600 Individual
$5,200 Family
Medical Out of Pocket - Calendar Year
$2,000 Individual
$4,000 Family
$2,500 Individual
$5,000 Family
Rx Out of Pocket - Calendar Year
$2,000 Individual $4000 Family
Included in medical amount above
Preventive Care
100%
Office Visit or Urgent Care
$35 Copay
80% after Deductible
100% after Deductible
Retail Clinic
(Target, MinuteClinic, etc.)
$15 Copay
In-Patient, Out-Patient, Emergency Room
Prescription Drugs
$15/$35/$85

6. Medical Plan Decision-Making Tool
You will again have a tool that can help you decide which medical plan is right for you
The tool will ask you questions about your health usage as well as that of your family
It will then provide you cost information which incorporates your payroll deduction as well as your out of pocket expenses when you incur a health care expense

7. 2017 Medical Plan Cost Comparison
$500/$1,000 Deductible + Copay Plan
Total Monthly Cost
UST Monthly Subsidy
Your Monthly Cost
Your Bi-Weekly Cost
Employee Only
$744.73
$559.23
$185.50
$92.75
Employee +Spouse
$1,340.45
$880.73
$459.72
$229.86
Employee + Child(ren)
$1,228.77
$807.37
$421.40
$210.70
Family
$1,936.21
$1,272.21
$664.00
$332.00
$1,250/$2,500 Deductible Plan
$676.97
$117.74
$58.87
$1,218.45
$337.72
$168.86
$1,116.93
$309.56
$154.78
$1,760.03
$487.82
$243.91
$2,600/$5,200 Deductible Plan - HDHP
$659.85
$100.62
$50.31
$1,187.63
$306.90
$153.45 $
$281.30
$140.65
$1,715.47
$443.26
$221.63

8. 2016 and 2017 Medical Plan Rate Comparison
$500/$1,000 Deductible + Copay Plan
2017
Employee Biweekly Cost
2016
Employee Cost Difference
UST Biweekly Cost
UST Cost
Difference
Employee Only
$ 92.75
$ 88.85
$3.90
$279.62
$249.66
$29.96
Employee +Spouse
$229.86
$216.11
$13.75
$440.37
$393.18
$47.19
Employee + Child(ren)
$210.70
$198.10
$12.60
$403.69
$360.43
$43.26
Family
$332.00
$312.14
$19.86
$636.11
$567.95
$68.16
$1,250/$2,500 Deductible Plan
$ 58.87
$ 58.05
$0.82
$168.86
$160.66
$8.20
$154.78
$147.26
$7.52
$243.91
$232.06
$11.85
$2,600/$5,200 Deductible Plan - HDHP
$ 50.31
$ 50.27
$0.04
$153.45
$146.65
$6.80
$140.65
$134.41
$6.24
$221.63
$211.81
$9.82

9. New Blue Cross ID Card
New ID cards will be sent out prior to January 1, 2017 that contain a new member ID, group number, website address and toll-free customer service number:
Members will need to provide this new card to any providers and pharmacies on or after January 1st
Fitness Discount program participants will need to show the new card to their fitness provider on or after January 1st
Dependent code is no longer needed. All members will have the same ID number

10. Sample ID CARD What is new: Group number ID number
Toll free customer service number
Share new card with your gym if you utilize the fitness center discount
Effective 1/1/2017
Important Reminder: Retain your current ID card in case you need information about your past coverage and claims information (be sure to write “old” on the old card to avoid confusion).

11. Employee Changes/Enhancements
New Blue Cross Website/Portal
Employee Changes/Enhancements
Beginning January 1, members will need to access a new Blue Cross website and re‐register on the new member portal. Below are a few of the enhancements:
Updated medical and pharmacy provider finder search
Members can receive cost estimates, view their benefit booklet, order/ /print a copy of their ID card among other things

12. New Online Member Website/ Portal
You will receive a postcard that introduces our new secure Blue Cross member website, bluecrossmnonline.com.
Access your new benefits
Future claims information
Wellness programs
For security reasons, you will need to register on the new portal, even if you have already registered online with BCBS.

13. Now, let’s review the basics about our High Deductible Plan and a Health Savings Account

14. One of the medical plan options is a High Deductible Health Plan (HDHP)
Some of the features of this medical plan option are:
100% coverage for preventive care
All other services (including office visits and prescription drugs) are subject to the plan’s deductible
Allows you to contribute to a Health Savings Account (HSA) on a pre-tax basis
What is a Health Savings Account (HSA)
An account that allows you to save for future eligible health care expenses on a pre-tax basis.
Additional talking points:
This is a relatively new plan option designed to put more control in the hands of the health care consumer.
If the company also has an FSA plan, emphasize the differences between the two plans, especially the ability to roll over unused amounts and that the money is invested.

15. HSA Advantage: Triple Tax Savings
HSA Advantage: Long-Term Savings
Save for future eligible health care expenses
Your unused balance rolls over from year to year even after you leave the university – no “use it or lose it” rule
You retain control and you make choices about how to spend your health care dollars
HSA Advantage: Triple Tax Savings
Tax-Free Contributions: Deductions from your pay can be made on a pre-tax basis
Tax-Free Earnings: Nominal interest rate for as long as the money stays in your HSA
Tax-Free Withdrawals for qualified health care expenses
Additional talking points:
No other plan offers what the HSA does: A tax-free way to save for current and/or future medical expenses.

16. Who Is Eligible for a Health Savings Account?
Participants enrolled in a qualified high-deductible health plan (HDHP) – the $2,600/$5,200 deductible option
Must not be enrolled in Medicare
Must not be covered by other medical insurance
Must not have received VA medical benefits at any time in the past three months
Cannot be claimed as a dependent on someone else’s tax return
You and your spouse cannot be contributing to/participating in a general-purpose FSA (healthcare reimbursement account)
If you are currently participating in a healthcare FSA for 2016, you need to have a $0 balance in that account on 12/31/16 or you will not be eligible to contribute to an HSA account until 4/1/17 (IRS rule)
Additional talking points:
Specifically refer to the name of the plan being offered that employees would need to enroll in to also have the HSA.
Describe what the plan’s specific deductibles are and the out-of-pocket maximums.
If the health plan has more than two tiers (for example, they have individual, employee+1, and family), explain how the HSA only has two tiers; family limits apply to anything other than an individual.
HSAs are available on an individual basis or through an employer.

17. How Much Can You Contribute?
For 2017, the federal government has established the following employee maximum contributions: Single: $3, Family:$6,750
Annual maximum limits tied to cost of living adjustments
Catch-up contributions available for individuals 55 or older in 2017: $1,000
Contributions maximums are subject to the number of months that you are eligible to make HSA contributions. If you lose HSA eligibility, certain tax ramifications may apply to the amount you have over-contributed. Consult your personal tax advisor for more information.
Please note:
This slide will be updated as soon as the 2005 limits are announced.
Cost-of-living adjustments are typically announced in mid- to late-October.
Additional talking points:
If you and your spouse both contribute to an HSA, your combined contribution limit is the lesser of the two deductibles.
If the employer is also contributing, that amount must be included when considering the limit.
Example: If your plan has a $2,000 deductible and the employer is contributing $500, the employee can only contribute $1,500.
The catch-up contribution limit is $600 for 2005 increasing $100 each year until reaching $1,000 in Note that the age for HSA catch-up contributions is different than for 401(k) plans (which is age 50).
There is no minimum contribution limit.

18. Eligible Expenses Most out-of-pocket health care expenses: Deductibles
Eyeglasses and contacts
Dental expenses
Prescription costs
The incurred date of the expense must be after the Health Savings Account has been established and funded
Additional talking points:
Eligible health care expenses include expenses for you, your spouse and dependent children. Your spouse and dependent children do not need to be covered under your medical plan in order to have an eligible HSA expense.
If the plan has an FSA make a comparison to that.
Other eligible expenses of note include: chiropractic care; lab test expenses, sports physicals.
Employee contributions for health care are not eligible.

19. How are contributions made to an HSA?
Employees can make pre-tax contributions through regular payroll deductions. You may stop or change your pre-tax contribution amount during the year.
Employees can make direct contributions on an after-tax basis
Employees can make a one-time transfer to their HSA from an IRA (no greater than the annual contribution allowed)
Employees can send in contributions throughout the year and up until April 15th of the following year

20. HSA Advantage: Ownership
You control how you spend the money in your account
Use it for eligible expenses today
Save it for the future
You can change your medical plan option in the future and still keep the money in your HSA
If you enroll in a different plan option at St. Thomas in a future annual enrollment, or move to another employer, you can always continue to spend down the amount that is in your HSA on any qualified expense
As a consumer, you become actively involved in the entire healthcare process
Additional talking points:
Emphasize how the employee now has control over how their health care dollars are spent. If they are a wise consumer of care, they might not spend all of their account. If you decide to use a generic alternative to a brand name prescription and it costs you less, you keep the difference in your account.
If next year, you do not enroll in a high deductible plan, you cannot contribute to an HSA; however, you still have access to whatever is left in your account and you can use it to pay for any out-of-pocket expenses you have. [are you charged a fee if you do not have money going in but you still have an account?]
Employer contributions are immediately 100% vested and you own the money. Even if you leave your job, this money would stay in your HSA.

21. How are contributions accounted for at tax time?
If contributions are made through payroll deductions, contributions are excluded from gross income
If contributions are via a direct submission, employee will be able to deduct this from taxes – even if employee does not itemize
Employee will receive Forms 5498 and 1099 from Alerus to support contributions and withdrawals and to aid in tax preparation. Form 8889 is required to be filed
It is important to maintain all receipts for distributions you take from your HSA. You are responsible for proving to the IRS that you used your HSA funds for eligible expenses.

22. If you use your HSA for ineligible expenses (non-qualified withdrawals), there will be tax consequences
Under age 65
Ordinary income tax plus a 20% penalty
Over age 65
Subject to income tax, but likely at a lower rate
20% penalty does NOT apply

23. Delta Dental Plan Delta Dental PPO (In-Network) Delta Premier
Diagnostic & Preventive
100%
Deductible – Calendar Year
None
$25 Individual; $75 Family
Basic Services
90% after Deductible
Periodontics & Endodontics
80%
80% after Deductible
Oral Surgery
Major Services
50%
50% after Deductible
Orthodontics (children age 8-18)
50% to a Lifetime Maximum of $1,500
The plan will pay up to $1,500 per person per calendar year. This does not include orthodontia; ortho has a separate LIFETIME maximum benefit.
Out of Network benefits are available. See 2017 Enrollment Guide for more information.

24. Dental Plan Cost There are no changes to rates for 2017
2017 Dental Plan Rates
St. Thomas Dental Plan
Total Monthly Cost
UST Monthly Subsidy
Your Monthly Cost
Your Bi-Weekly Cost
Employee Only
$35.96
$10.66
$25.30
$12.65
Employee +Spouse
$89.96
$26.68
$63.28
$31.64
Employee + Child(ren)
$82.44
$24.44
$58.00
$29.00
Family
$129.92
$38.52
$91.40
$45.70

25. EyeMed Vision Plan There are no changes to the plan design
In-Network Member Cost
Out of Network Reimbursement
Exam w/ dilation as necessary
$10 Copay
Up to $30
Contact lens fit and follow up
Standard contact
Premium contact
Up to $55
10% off Retail
N/A
Frames
No copay; $130 allowance; 20% discount on charge over $130
Up to $65
Standard Plastic Lenses
Generally $25; see benefit guide for details
Varies from $25-$60 depending on type of lens; see benefit guide for details
Lens Options
Generally $0; see benefit guide for details
Generally up to $5
Contact Lenses
Generally $150 allowance; see benefit guide for details
Up to $120
Frequency
Examination
Frame
Lenses or Contact Lenses
Once every 12 months
Once every 24 months

26. Vision Plan Cost No change to premium rates
2017 Vision Plan Rates
St. Thomas Vision Plan
Total Monthly Cost
UST Monthly Subsidy
Your Monthly Cost
Your Bi-Weekly Cost
Employee Only
$ 6.28 -
$3.14
Employee + Family
$16.90
$8.45

27. 2017 Health Care & Dependent Care Flexible Spending Accounts (FSA)
Annual amount must be elected through the Online Annual Enrollment System (Murphy Online)
Separate limits apply to each account
Health Care FSA limit: $2,600
Dependent Care FSA limit: $5,000
Check your 2016 balance for surplus and spend before December 31st
Grace Period – Incur claims until March 15th; reimbursable up to May 15th. Note: The grace period applies only if you do not elect to contribute to the HSA in 2017.

28. Voluntary Term Life Insurance & AD&D
Employee:
up to 5x your annual salary in increments of $10,000, not to exceed $500,000. Life insurance amounts over $200,000 will require Evidence of Insurability (EOI)
Spouse:
up to 5x your annual salary in increments of $10,000, not to exceed $500,000; Life insurance amounts over $50,000 will require EOI.
Child(ren):
benefit election can be either $5,000 or $10,000. Under either option, benefit amount for child age 6 or under is $1,000.
Note: Benefit reductions apply upon reaching age 70 or 75. See the Benefits Guide for more information.

29. Long Term Disability
The university provides a long term disability (LTD) benefit providing income should you become disabled and pays the premiums for that coverage.
During annual enrollment, you can elect to pay taxes on the premium, making the income benefit received non-taxable
If you choose to change the taxability of your LTD benefit, please complete the form provided in your 2017 Benefit Guide and return it AQU 201 no later than 4:30 p.m. on Monday, November 14th

30. MetLaw Legal Legal services benefit administered by Hyatt Legal Plans
Provides telephone, in-office consultations and representation with a network of attorneys for a variety of issues such as estate planning, wills preparation, real estate matters, etc.
Complete Optional Manual Enrollment form if you wish to stop or enroll. No action needed if you want to carry over your 2016 election.
Cost: $18.90/month or $9.45/biweekly pay period

31. Employee Annual Enrollment
You must complete the online enrollment process to:
newly elect, change, or drop medical, dental and/or vision coverage
add or drop family members from your coverage
re-enroll or add a Health Care and/or Dependent Care Flexible Spending Account election or
re-enroll or elect a Health Savings Account (HSA) if enrolling in the HDHP option. Note: if you will be contributing to an HSA for the first time, you will also need to complete an HSA Enrollment Form to set up your account at Alerus.
You do not need to complete the annual online enrollment process if:
you do not wish to participate in the FSA or HSA
you do not wish to make changes to your other 2016 elections

32. Employee Annual Enrollment (continued)
You will need to complete the Optional Manual Benefits Enrollment Form to:
Enroll in or cancel MetLaw legal benefit
Change the taxable status of your long-term disability benefit
Add or change your voluntary life and AD&D insurance amount
Review your personal information and make the necessary corrections or provide missing information for you and/or your covered dependents
SSNs, dates of birth, mailing address

33. Employee Annual Enrollment (continued)
All online and manual enrollment changes and forms need to be completed and submitted by 11:59 p.m. on November 14th, 2016
Benefits staff will be available:
8:00 a.m. to 4:30 p.m. M-F, Aquinas Hall Room 201
Phone:
Fax:

34. Eligibility
If your family members currently are covered under any of our benefit plans, you should confirm their continued eligibility under each of the plans before deciding whether to complete annual enrollment
It is your responsibility to remove ineligible family members from coverage, and failure to do so could result in adverse consequences to you including termination of employment

35. Questions?
Questions?
Thank you for attending the 2017 Annual Enrollment meeting!