1. DAAR Employee Benefits
2014

2. Background 2013 United Healthcare utilization was HIGH
Result: 28.7% increase in premiums for DAAR to stay on existing plans
app. $500 per month per family increase
Sought other options

3. Changes… or not Providers Structure Funding
Medical: WPS/First Health Medical
Dental: Delta
Vision: VIPA
Structure
Both HRA and HSA Models available
Matching plans
Employer contribution for deductible
Funding
Fully Insured to Self-Insured
Not a major change to employees
Education & Involvement = Wellness & Cost Containment
General feedback on utilization will be provided
Tools for non-emergency facility choice will be provided
Possible future year changes if costs are not contained
Health Risk Assessments
Smoker Premiums
Reduced In Network options

4. Medical – Definitions Review
Premium: Monthly fee to have a plan.
Deductible: Amount that needs to be paid BEFORE benefits kick in.
Provider: A doctor or facility.
In-Network: Using WPS/First Health provider.
Out of Network: Using a doctor that is not contracted with United Healthcare.
Out of Pocket Maximum: Maximum total that a member or family would have to pay for a year on a plan after premium. *one for IN and one for OUT of network.
Coinsurance: Amount that insurance covers once you have reached your deductible, but BEFORE you reach the applicable out of pocket maximum.
HRA: Health REIMBURSEMENT Account – Money from DAAR to help you pay your bills
HSA: Health SAVINGS Account – Bank account in your name that you can use to pay for medical, dental, vision and future medical related expenses. You can deposit PRE-tax money and DAAR can deposit money.
Contribution: Money given by DAAR or money that you choose to add to your HSA.
MFSA: Medical Flexible Spending Account – money that you can have deducted over the course of the year PRE-tax to pay for medical, dental and vision expenses. Total yearly amount is available January 1st. Any money not used is lost at the end of the year.
LPFSA: Limited Purpose FSA – same as MFSA but limited to dental and vision only.
DCFSA: Dependent Care FSA – pre-tax contributions are made for childcare reimbursement. Available as contributions are made.

5. Basic Plan Structure In Network Deductible: 1500/3000
HRA/HSA from DAAR: 1500/3000
In Network Co-Insurance: 100%
Out of Pocket Maximum: Actual: 1500/3000 Net: 0 after DAAR contribution
Out of Network Deductible: 3000/6000
Out of Network Co-Insurance: 70%
Out of Pocket Maximum: 10,000/20,000
Express Scripts/Medco Pharmacy

6. Premium Rates
Employee: $528 per year PRE-tax $396 post-tax* $15 net effect per pay* EE + Child(ren): $1,111 per year PRE-tax $833 post-tax* $32 net effect per pay* EE + Spouse: $1,222 per year PRE-tax $916 post-tax* $35 net effect per pay* Family: $1,336 per year PRE-tax $1,002 post-tax* $38 net effect per pay*
*assumes a 25% tax basis. May be slightly higher or lower due to tax status.
*bi-weekly post-tax impact estimate

7. HSA Ineligible For all covered members and spouses
Health coverage through another plan
Enrolled in Medicare (can use funds from an existing account)
Claimed as a dependent on another person’s tax return
Medical FSA or HRA (Limited Purpose FSA’s are acceptable)

8. Dental
Delta
Same benefits as with United Healthcare, but different provider network
Generally, more dental provider options with Delta
Summaries of Benefits can be found on the DAAR intranet

9. Vision Insurance

10. Patient care Will no longer be available
Watch for future communications regarding cost and quality information

11. Short Term Disability
Will continue as 100% DAAR paid premium benefit for 2014 for all Full-Time employees.
Provided through Lincoln Financial Services.

12. Flexible Spending Account
Provider changing to Employee Benefits Corporation (EBC)
Limited Purpose FSA
Used for Dental and Vision expenses ONLY
2014 Maximum contribution is $2,500
Full amount of yearly contribution is available January 1, 2014
Dependent Care FSA
Used for pre-tax childcare savings
2014 Maximum contribution is $5,000
Available as contributions made throughout the year

13. Voluntary Benefits Lincoln Life, AD&D, LTD AFLAC
Spouse and Child option
Group rates
Evidence of Insurability (health history) requirements
AFLAC
Accident, Cancer, Life, AD&D, LTD
Individual rates

14. 401K
Provided by Ascensus
Can be changed at any time throughout the year.
Initiate the change online. Melissa will be notified to update deductions for payroll.
Eligible after 3 months of employment regardless of status.
Company match 50% of up to 8% of employee contribution.
Vesting schedule applies.
Vesting Schedule:
Less than 2 0%
2 Years:
20%
3 Years:
40%
4 Years:
60%
5 Years:
80%
6 Years:
100%

15. Information www.wpsic.com DAAR Intranet Preview video
Health Center/Encyclopedia
Medications/Generics available
DAAR Intranet
Summaries of Benefits when we have them
Forms
Information/Presentation materials

16. Forms/Questions Enrollment Forms Due 12/13/2013
VIPA Vision Separate Form
FSA Separate Form
HSA – if new, will need to set up account
Questions??

17. Medical – HSA Example 1
Employee chooses to contribute $0 into HSA over 2014
1/15/14 Doctor Visit: Tests $1500
Pay $1500 with HSA card
2/15/14 Doctor Visit: Tests $3000
Pay $1500 with HSA card-DAAR contrib.
WPS Insurance will cover remaining $1500 and all future in-network medical.
Total OOP = $0

18. Total OOP = $0, HSA remaining = $700
Medical – HSA Example 2
Employee chooses to contribute $0 into HSA over 2014
1/15/13 Doctor Visit: Tests $1500
Pay $1500 with HSA card-DAAR contrib.
2/15/13 Dental Visit: Crown $800
Pay $800 with HSA card-DAAR contrib.
Total OOP = $0, HSA remaining = $700

19. Total OOP = $800 (amount of crown, but paid in May instead of Feb)
Medical – HSA Example 3 – Assumes all In Network
Employee chooses to contribute $0 into HSA over 2014
1/15/13 Doctor Visit: Tests $1500
Pay $1500 with HSA card
2/15/13 Dental Visit: Crown $800
Pay $800 with HSA card
4/15/13 Doctor Visit: Tests $800
Pay $700 with HSA card, pay $100 with personal money.
5/15/13 Doctor Visit: Tests $1000
Pay $700 with personal money then WPS Insurance covers 100% of in-network (3000 deductible is met)
Total OOP = $800 (amount of crown, but paid in May instead of Feb)

20. Medical – HSA Example 4
Employee chooses to contribute $2,000 into HSA over 2014
(2,000/26 = per bi-weekly pay (pretax))
1/10/13 Dental Visit: Crown $800
Pay $800 HSA card
2/1/13 Doctor Visit: Tests $1500
Pay $1500 with HSA card
3/1/13 Doctor Visit: Tests $2000
Pay $ with HSA card
($700 DAAR contribution + $ employee contribution – 4 weeks)
Pay $ with personal money. WPS insurance will cover remaining $500 and all future in-network medical.
As HSA is accumulated, it can be used for Medical, Dental, Vision, or saved for future use.