1. University of Wisconsin System Annual Benefit Enrollment (ABE) Period October 5 – 30, 2015 www.wisconsin.edu/abe

2. Benefit Changes Allowed during Annual Benefit Enrollment (ABE) o All changes made during this period are effective January 1, 2016. o If you do nothing, your existing benefit elections, with the exception of your Flexible Spending Accounts (FSA), will continue in 2016. Plan Open Enrollment Change Plan Add Dependents Remove Dependents Cancel Coverage State Group Health YesAny Health PlanYes EPIC Benefits+NoRemove visionNoYes Dental Wisconsin YesPPO SelectYes VSP VisionYesN/AYes Individual & Family Life Insurance No Increase current coverage NoAny time Flexible Spending Accounts (FSA) Yes Must re-enroll every year N/A

3. 2016 Annual Benefit Enrollment (ABE) Health Insurance Changes and Updates 3

4. 2016 Health Insurance Name Changes 4 Previous NameNew Name for 2016 Coinsurance Uniform Benefits (HMO/Regional PPO Uniform Benefits) Health Plan/IYC Health Plan High Deductible Health Plan High Deductible Health Plan (HDHP)/ IYC High Deductible Health Plan (HDHP) Standard Plan Access Health Plan/IYC Access Health Plan HDHP Standard PlanAccess HDHP/IYC Access HDHP

5. 2016 Health Insurance Plan Changes o Elect or Waive Uniform Dental Benefits o Increased Cost Sharing  Added deductibles  New office visit copayments  Increased out-of-pocket limits  Changes to pharmacy benefits o $2,000 Health Insurance Opt-Out Incentive o Increased HSA Employer Contribution 5

6. 2016 Health Insurance Provider Changes Health Plan What’s New in 2016? Action Needed during ABE Arise Health Plan Combining service area All Arise participants should confirm provider network for 2016. Arise- Aspirus Health Plan Offering new service area Network Health Plan Offering new service area in southeast part of the state None. WEA Trust PPO (all) Will NOT be providing coverage in following service areas: East: Florence, Fond du Lac, Forest, Jefferson, Kenosha, Langlade, Lincoln, Marinette, Oneida, Price, Racine, Taylor, Vilas Northwest Chippewa Valley: Burnett, Sawyer, Trempealeau Northwest Mayo Clinic Health System: Buffalo Select new health plan if you will be affected. Access Health (Standard) Plan Uniform Dental benefits will be included with health coverage automatically. This was not included in prior years. May select plan with or without the Uniform Dental benefit. 6

7. 2016 Health Insurance Opt-Out Incentive If enrolled in State Group Health insurance (except Craftworkers and Graduate Assistants) in 2015 can opt-out of coverage for the 2016 plan year and receive a $2,000 Incentive. o Must be enrolled (did not waive) for the 2015 year o May not be covered under the State Group Health insurance program as a dependent in 2016 o Must submit a State Group Health insurance PAPER application during ABE to receive the opt-out incentive for 2016. o How will the incentive be paid out? o Paid out in installments throughout year o Incentive will be considered taxable. 7

8. 2016 Health Insurance Premiums Premiums listed do not apply to those who are required to pay the less than half-time rates or the total premium. Premium Tier Employees Covered by the WRS – It’s Your Choice Health Plan Employees Covered by the WRS – It’s Your Choice HDHP Health Plan Employees Covered by Grad Assistant/Short- Term AS (It’s Your Choice Health Plan only) SingleFamily Single FamilySingleFamily Tier 1 With Dental $86$217$32$81$44.50$112.50 Without Dental $83$209$29$73$41.50$104.50 Tier 2 (Access Plan – out of state) With Dental $136$341$82$205$69.50$174.50 Without Dental $133$333$79$197$66.50$166.50 Tier 3 (Access Plan) With Dental $253$632$199$496$128$320 Without Dental $250$624$196$488$125$312 8

9. Uniform Dental Benefits 9 New for 2016: Employees may enroll or waive the Uniform Dental benefits as part of their State Group Health Insurance election. o Employees must be enrolled in State Group Health insurance coverage in order to be eligible for the Uniform Dental Benefit plan. o Current State Group Health participants - Uniform Dental benefits are included automatically (including Access Plan, formerly Standard Plan). o Employees must take action during the ABE period to select a health plan without the dental option, if they wish to waive Uniform Dental.

10. Uniform Dental Benefits 10 o Employees must take action during the ABE period to select a health plan without the dental option, if they wish to waive Uniform Dental. o Coverage level (single/family) must be the same as medical. o Dental expenses, including those for HDHP plans, are separate from medical benefits and will not be subject to a deductible and do not count toward the OOPL. o Employees should search Delta Dental’s website: www.deltadentalwi.com/ to determine if their current providers are included in the coverage network. www.deltadentalwi.com/

11. Uniform Dental Benefits Make sure your dental provider is in-network before receiving dental services in 2016. No benefit for out-of-network providers Search for in-network providers: deltadentalwi.com/state-of-wideltadentalwi.com/state-of-wi (in conjunction with any covered service under the UDB)

12. Uniform Dental Benefits 12 Administered by Delta Dental of Wi (providers are no longer determined by Health Plans) Two Delta Dental provider networks: Delta Dental PPO – best cost savings Delta Dental Premier ID Cards for 2016 are expected to be sent out in December, 2015 Tools and resources at: DeltaDentalWI.com/state-of-wi DeltaDentalWI.com/state-of-wi

13. Deductibles Q: What is a deductible? A: A deductible is the amount you must pay out of pocket for the full cost of certain health care services before your health plan begins to pay. Certain preventive health services are covered 100% and are not subject to the deductible. 13 Health Plan High Deductible Health Plan (HDHP) Access Health Plan (In-Network) Access Health Plan HDHP (In-Network) Deductible SingleFamilySingleFamilySingleFamilySingleFamily $250$500 1 $1,500$3,000 2 $250$500 1 $1,700$3,400 2 _______________________________________________ 1 After an individual within a family plan meets the $250 deductible, medical services will be covered for that individual. 2 The full family deductible must be met before any medical services are covered.

14. Office Visit Copayments 14 Visit TypeIncludesCopayment Counts Toward Out-of-Pocket Limit? Primary Care Office Visit General Physician - Pediatrician OB/GYN - Nurse Practitioner Chiropractor $15Yes Specialty Office Visit Specialty Providers - Urgent Care Vision Exam in an office visit setting $25Yes Emergency Room $75 (waived if admitted) Yes Q: What is a Copayment (copay)? A: A copay is a fixed amount you pay for certain covered health care services or prescription drugs, usually due at the time you receive the service. New for 2016: Copays will be applied to primary care and specialty care office visits as well as Pharmacy Health Plan Copays will not count toward the deductible, but will count toward the out-of-pocket limit. High Deductible Health Plan (HSHP) copays are applied after the deductible is met. Additional services billed as part of the office visit (labs/x-ray)are subject to deductible and/or coinsurance. Preventive services are covered 100% and are not subject to copays.

15. Coinsurance Q: What is coinsurance? A: Coinsurance is the member’s share of the costs of a covered health care service or prescription drug, calculated as a percent of the amount for the service or cost of the drug. o Coinsurance amounts are based on the total cost of a drug or service. o For the Health Plan and In-Network HDHP, once the deductible is met, a 10% coinsurance will be charged for all non-copayment- related services beyond the charge for the office visit. Exception: A 20% coinsurance applies to covered durable and disposable medical equipment, certain hearing aids, and cochlear implants. o Federally preventive services are not subject to a deductible, copays, or coinsurance. o Medical coinsurance amounts count towards the OOPL. 15

16. 16 Pharmacy Benefits 2016 Prescription Copays, Coinsurance, and Out-of-Pocket Limits (It’s Your Choice Health Plan) Prescription Drug LevelMember CostsAnnual RX OOPL* Level 1$5 per fill$600 individual / $1,200 family Level 2 20% ($50 maximum per fill) $600 individual / $1,200 family Level 3 40% ($150 maximum per fill) Does not apply to Rx OOPL. Only applies to Federal maximum out-of-pocket limits (MOOP): $6,850 individual / $13,700 family Level 4 Preferred Specialty Drug Filled at a Preferred Specialty Pharmacy (e.g. Diplomat Specialty Pharmacy) $50 per fill $1,200 individual / $2,400 family Filled at any other pharmacy 40% ($200 maximum per fill) New for 2016: Increased pharmacy out-of-pocket limits. Costs for Levels 2, 3 and 4 prescriptions will change from copay to coinsurance, up to a specified maximum. Level 1 will continue to be a copay. *HDHP Plans: Members are responsible for the full cost of prescriptions until their annual deductible has been met. Once the deductible is met, the member costs in the table above will apply. See the HDHP Combined OOPL amount for each plan at www.wisconsin.edu/abewww.wisconsin.edu/abe

17. Coinsurance is a percentage of total cost (for Level 2, 3 and 4 drugs); the cost of the drug will impact how much you pay. o Option 1: Contact your pharmacist and ask what the total cost of your prescription is. If you take this approach, show your pharmacist your Navitus ID card if necessary and be sure to inform your pharmacist that:  You are a State Group Health insurance program member  Navitus Health Solutions is your Pharmacy Benefit Manager  You need to know the Navitus discounted cost of the drug– not the full retail cost. o Option 2: You may also find the total cost of your prescribed drug on the documents and/or receipts you receive with your prescription. o Option 3: If enrolled in SGH for 2015, review your medication history via the Members portal on Navitus’ website. Log in to the members section of navitus.com to view the current formulary and determine levels 17 How to Determine Prescription Costs

18. Out-of-Pocket Limits (OOPL) Q: What is an out-of-pocket limit? A: An out-of-pocket limit (OOPL) is a plan provision that limits the member’s cost-sharing. It is the maximum amount that a member will pay for in-network, covered services during a plan year. Once the OOPL is met, coinsurance and copayments no longer apply for health. o Reminder: There are separate medical and prescription out-of-pocket limits (except for HDHP plans). Increased Medical OOPL for Health Plans and Access Health Plan in 2016; No change to HDHP plans. 18 2016 Health Plan High Deductible Health Plan (HDHP) Access Health Plan (In-Network) Access Health Plan HDHP (In-Network) OOPL SingleFamilySingleFamilySingleFamilySingleFamily $1,250$2,500 1 $2,500$5,000 2 $1,000$2,000 1 $3,500$7,000 2 _______________________________________________ 1 After an individual within a family plan meets the single OOPL, medical services will be covered at 100%. 2 The full family OOPL must be met before medical services will be covered at 100%.

19. 19

20. Is the HDHP/HSA Right for You? o Considerations when deciding to enroll in the HDHP/HSA option  The HDHP has higher out-of-pocket costs  The HDHP has a lower monthly premium  The HSA provides a way to set aside pre-tax monies into a savings account that can earn interest  Your employer will contribute $750 for single or $1,500 for family coverage to your HSA in 2016 20

21. COST SHARING EXAMPLE: HEALTH PLAN You enroll in a single Health Plan with a local HMO for 2016. o VISIT #1: You visit your doctor in January 2016 and have minor surgery (such as removing a precancerous mole) while you are in the office. This is not considered preventive medical services. This is your first doctor visit of the year and nothing has been applied to your deductible for 2016.preventive medical services The doctor bills the following: Office Visit: $100 Minor Surgery:$300 Total: $400 o Your insurance coverage includes a $15 Primary Care Visit copay, a $250 calendar year deductible and a 10% coinsurance for medical services. 21

22. COST SHARING EXAMPLE: HEALTH PLAN (The doctor bills the following: $400) You will pay Copay: $15 - Office Visit Deductible: $250 of the $300 Minor Surgery Coinsurance: $5 (10% of the remaining $50) TOTAL AMOUNT PAID BY YOU: $270 You paid $270 in medical costs towards your OOPL of $1,250 in January, leaving $980 remaining o The remaining $130 will be covered by your insurance according to your policy terms. 22

23. COST SHARING EXAMPLE VISIT #2: HEALTH PLAN o Following Visit #1, You visit the Emergency Room in February 2016 and get admitted to the hospital for appendicitis. You end up having an appendectomy and staying in the hospital for a day. This is not considered preventive medical services.preventive medical services The doctor bills the following: Emergency Room: $ 200 Imaging: $ 600 Surgery: $30,000 Hospital Stay: $ 4,200 o Total: $35,000 o Your insurance coverage includes a $75 Emergency Room copay, a $250 calendar year deductible and a 10% coinsurance for medical services. The out-of-pocket limit for your plan is $1,250, for an individual. 23

24. COST SHARING EXAMPLE VISIT #2: HEALTH PLAN (The doctor bills the following: $35,000) You will pay Copay: $0 – Waived if admitted. Deductible: $0 - Met in January in Visit #1 Coinsurance: $980 10% of $34,800 for Imaging, Surgery and Hospital Stay is $3,480. You paid $270 in medical costs towards your OOPL of $1,250 in January, leaving $980 remaining in your OOPL for Medical. TOTAL AMOUNT PAID BY YOU: $980 o The remaining $34,020 will be covered by your insurance according to your policy terms. You have met your cost sharing for 2016. 24

25. COST SHARING EXAMPLE: High Deductible Health Plan (HDHP) 25 You enroll in a single HDHP with a local HMO for 2016. o VISIT #1: You visit your doctor in January 2016 and have minor surgery (such as removing a precancerous mole) while you are in the office. This is not considered preventive medical services. This is your first doctor visit of the year and nothing has been applied to your deductible for 2016.preventive medical services The doctor bills the following: Office Visit: $100 Minor Surgery: $300 o Total: $400 o Your insurance coverage includes a $1,500 calendar year deductible and a $15 primary care visit copay along with a 10% coinsurance for medical services, after the deductible is met.

26. COST SHARING EXAMPLE: High Deductible Health Plan (HDHP) 26 (The doctor bills the following: $400) You will pay Copay: $0 Deductible: $400 Coinsurance: $0 TOTAL AMOUNT PAID BY YOU: $400 All of this will be applied towards your deductible. You will have $1,100 remaining to meet your deductible. o Your insurance will not provide payment for this service according to your policy terms.

27. COST SHARING EXAMPLE VISIT #2: High Deductible Health Plan (HDHP) 27 o Following Visit #1, You visit the Emergency Room in February 2016 and get admitted to the hospital for appendicitis. You end up having an appendectomy and staying in the hospital for a day. This is not considered preventive medical services.preventive medical services The doctor bills the following: Emergency Room: $ 200 Imaging: $ 600 Surgery: $30,000 Hospital Stay: $ 4,200 o Total: $35,000 o Your insurance coverage includes a $1,500 calendar year deductible, a $75 Emergency Room copay, and a 10% coinsurance for medical services, after the deductible is met. You have $1,100 remaining to meet your deductible following visit #1. The OOPL for the HDHP plan is $2,500.

28. COST SHARING EXAMPLE VISIT #2: High Deductible Health Plan (HDHP) 28 (The doctor bills the following: $35,000) You will pay Copay: $0 - Waived if admitted (only applies after deductible) Deductible: $1,100 (remaining to reach the full $1,500 annual deductible) Coinsurance: $1,000 10% of $33,900 for ER, Imaging, Surgery and Hospital Stay is $3,390), $1,100 towards the deductible. You paid $1500 in medical costs towards your OOPL of $2,500, leaving $1,000 left to reach your OOPL. TOTAL AMOUNT PAID BY YOU: $2,100 o The remaining $32,900 will be covered by your insurance according to your policy terms. You have met your cost sharing for 2016.

29. Member Health Plan Medical Costs Overview 29 Person pays for medical costs until they reach their deductible. Then, person pays coinsurance amounts while their insurance covers the remainder of medical care costs. Insurance covers expenses at 100% after reaching the out-of- pocket limit (OOPL) or, if applicable, the federal maximum out of pocket (MOOP). COPAYS are separate from the deductible and apply toward the OOPL

30. Your Health Insurance Options For Health Insurance, you may take the following actions during ABE:  Enroll  Change health plans  Add or remove eligible dependents  May select health plan with or without Uniform Dental coverage (default is with dental)  Cancel coverage for 2016  Health Insurance Opt-Out Incentive (through paper application only) o As always, confirm your current medical and dental providers will still be available in 2016. 30

31. Let’s Talk About Savings 31  Flexible Spending Accounts (FSA)  Limited Purpose Flexible Spending Accounts (LPFSA)  Health Savings Accounts (HSA)

32. FSA Type Eligible Expenses Eligible Dependents Yearly Contribution Limits Health Care FSA Medical, dental, vision & prescription You, your spouse (same or opposite-sex), qualifying child or relative Min: $100 Max: $2,550 Dependent Day Care FSA After school care, adult or child daycare, preschool Your spouse (same or opposite-sex), qualifying child or relative Min: $100 Max: $5,000 — dependent on tax filing status Limited Purpose FSA (for employees enrolled in the HDHP) Dental, vision & post-deductible expenses You, your spouse (same or opposite-sex), qualifying child or relative Min: $100 Max: $2,550 FSA Plan Descriptions

33. Health Savings Account (HSA) (Only for Employees Enrolled in HDHP) New in 2016: Increased Employer Contribution o *If you are 55-65 years of age, you may contribute an additional $1,000 “catch-up” per year to your HSA. o The employer contribution will be paid throughout year. o If you do not enroll for the HSA, you are not eligible for the HDHP. o Will follow up prior to processing application for HDHP, to ensure HSA is accepted. o Craftsworkers are not eligible to receive the annual employer contribution to an HSA but must still enroll in the HSA if electing an HDHP. o Grad/Short-term Academic Staff participants are not eligible for the HDHP Annual Contribution Information for HSA HDHP Enrollment Employer Contribution 2016 Limit (including ER contribution) Single$750/year$3,350* Family$1,500/year$6,750* 33

34. Flexible Spending Accounts (FSA) o You must re-enroll every year if you want to continue the coverage o To Enroll for the FSA, LPFSA plans: partners.tasconline.com/ETFEmployee partners.tasconline.com/ETFEmployee o All enrollees will receive a new TASC card in 2016 o Do not use 2015 TASC card for expenses in 2016, as of 1/1/2016 o MyCash balance will remain on 2015 TASC card if funds are not moved to bank account. o Employees should consider moving My Cash balance to bank account 34

35. 35 Calculate Estimated Prescription Cost 1.ADD the amount your plan paid to the amount that you paid for the prescription in 2015 2.Multiply the total from step #1 by the coinsurance percentage found on your benefit schedule to determine estimated member copay based on 2016 benefit design and formulary coverage Level. Note the Maximum copay amounts. *NOTE: Drug prices and contracted rates can change daily. All cost calculations will be estimates. Plan paid $285 You paid $15 Total Drug Cost $300 += Level 2 Coinsurance (20%) 0.20 x Your COPAY $50 ($50 maximum) = EXAMPLE (using 2015 Rx amounts to estimate cost in 2016) Formulary coverage Level = 2 (20% with $50 maximum copay). In example, you would pay $50, not $60.

36. Health Care and Limited Purpose FSA Carry-Over o The plan year is from January 1, 2016 to December 31, 2016. o Up to $500 remaining in your Health Care or Limited Purpose FSA can carry over to the following plan year. Anything over $500 will be forfeited. o Current Participants: If you have any unused funds in your 2015 Health Care or Limited Purpose FSA on December 31, 2015, up to $500 will carry over to 2016. o You will have until March 30, 2016 to file your 2015 claims. 36

37. 2016 Annual Benefit Enrollment (ABE) Additional Enrollment Options 37

38. Dental & Vision Insurance Options o All health plans offer Uniform Dental benefits. May select health plan without Uniform Dental benefits. o Vision exam under health plans are subject to $25 specialty office visit copay. o If dental and vision coverage offered by your health plan doesn’t meet your needs, consider one of our optional dental or vision plans. See Comparison Charts.See Comparison Charts. o If elected, you must remain enrolled in the plan for the entire calendar year. 38

39. Dental Wisconsin o Dental Wisconsin offers two plans – the PPO plan and the Select plan. You may enroll in one of these two plans. These plans provide partial coverage for:  Fillings and major dental services (crowns, implants, etc.) up to the annual $1,000 maximum PPO covers annual cleanings and x-rays  Orthodontic services (up to $1,000 lifetime maximum)  Vision discount program through Davis VisionDavis Vision  Waiting periods apply for new enrollees:  Basic: 3 months (i.e. fillings)  Major: 3 months (i.e. crowns, implants)  Orthodontics: 12 months Waiting periods may be waived if you had prior comparable coverage (no gap in coverage). 39 www.wisconsin.edu/ohrwd/benefits/med/dentalwi/

40. 2016 Dental Wisconsin Premiums o No change in premiums from 2015 to 2016 Monthly Premiums for 2016 Employee Employee + Spouse/DP Employee + Child(ren) Family Select$20.52$42.19$48.68$71.59 PPO$25.49$53.96$60.34$91.21 40 www.wisconsin.edu/ohrwd/benefits/premiums

41. VSP Vision o VSP Vision offers partial coverage for: o Annual vision exam o Eyeglass lenses every calendar year and eyeglass frames every other year o Contact lenses every year instead of eyeglasses or eyeglass lenses o Discounts on laser vision correction o KidsCare program (eyeglasses more often for children) o No benefit changes for 2016. 41 www.wisconsin.edu/ohrwd/benefits/med/vision/

42. 2016 VSP Vision Premiums o No change in premiums from 2015 to 2016 Monthly Premiums for 2016 Employee Employee + Spouse/DP Employee + Child(ren) Family VSP Vision$6.54$13.08$14.73$23.54 42 www.wisconsin.edu/ohrwd/benefits/premiums

43. Individual & Family Life Insurance– ANNUAL INCREASE OPTION o If covered by the Individual and Family Life insurance plan on October 1 st, may increase coverage level by the following amounts: o Employee: $5,000; $10,000; $15,000 or $20,000 o Spouse/Domestic Partner: $5,000 or $10,000 o Child(ren): $2,500 o Coverage maximums: o Employee: $300,000 o Spouse/Domestic Partner: $150,000 o Child(ren): $25,000 NOTE: Spouse/Domestic Partner or Child coverage cannot exceed employee coverage. 43

44. Individual & Family Life Insurance o Coverage INCREASES for Individual and Family can be made either through:  eBenefit election, or  Annual Increase Option form Annual Increase Option form  Decreases and cancellations of coverage cannot be done through eBenefits, you MUST complete a paper application and return it to your benefits office. 44

45. Wisconsin Retirement System (WRS) 2016 Contribution Rates o This change will occur on the first check payable in 2016 o Monthly – 1/4/16 o Biweekly – 1/7/16 2015 and 2016 WRS Contribution Rates CategoryGeneral/TeacherExecutives Protectives w/ Social Security Employee Contribution 6.60% Employer Contribution 6.60% 9.40% Total13.20% 16.00% 45

46. Didn’t we miss a few plans?? o LIFE Insurance & AD&D Accidental Death & Dismemberment (AD&D) – No Change University Insurance Association Life (UIA) – Annual Process 10/1/15 State Group Life (SGL) – No Change o Income Continuation Insurance (ICI) 20% Premium Increase Effective Coverage Date Change o Tax Sheltered Annuity (TSA) & Wisconsin Deferred Compensation (WDC) – We Encourage Savings! o Long-Term Care – Transmerica is a new option in addition to United of Omaha 46

47. Important Reminders 1.All benefit enrollments or changes made during the ABE period are effective January 1, 2016. 2.You have until October 30, 2015 at 4:30 p.m. to submit your paper applications to your institution’s benefits office or make your elections using eBenefits. 3.Visit www.wisconsin.edu/abe for detailed Annual Benefit Enrollment (ABE) information.www.wisconsin.edu/abe 4.Contact your institution’s benefits office if you have any questions or need assistance. 47