2008 BENEFITS 2008 BENEFITS OVERVIEWOVERVIEW

Employee PresentationEmployee Presentation

AETNA Benefits Offering OverviewAETNA Benefits Offering Overview

Multiple Medical Plans: HSA, HRA, HMO, PPOMultiple Medical Plans: HSA, HRA, HMO, PPO

Choice of Two Dental Plans: Dental PPO or DentalChoice of Two Dental Plans: Dental PPO or Dental Maintenance Organization – DMO (available in Maintenance Organization – DMO (available in somesome areas)areas)

Supplemental Life Insurance for Employee, SpouseSupplemental Life Insurance for Employee, Spouse & Children& Children

New 01/01/08New 01/01/08 – During the 90 day benefit waiting – During the 90 day benefit waiting periodperiod staff & contractor core benefit eligible employeesstaff & contractor core benefit eligible employees will be eligible for a limited medical (mini-med)will be eligible for a limited medical (mini-med) plan (SRC)plan (SRC)

What’s the Difference Between What’s the Difference Between Coinsurance and Copay?Coinsurance and Copay?Coinsurance is the percentage of covered expenses paid

by the health insurance plan after the deductible is met. This percentage varies depending on the plan design

In this example, a health insurance plan covers 80% (in-network) of medical expenses after the deductible is met

The member pays the remaining 20%

A copayment is a fixed-dollar amount paid for covered medical expenses

HRA 5, 12/06

Doctor Bills$100

Member Pays $20(or 20%

coinsurance)

Health Ins. Planpays $80 (or

80% coinsurance)

]

What is a Consumer-Directed Health What is a Consumer-Directed Health Plan?Plan?

HRA 5, 12/06 ]

Why does PDS advocate consumer driven Why does PDS advocate consumer driven healthcare?healthcare?

Informed consumers make better decisions. Lower spending leads to lower premium increases.

Consumer-directed health plans, or CDHPs, are made up of three elements:

An underlying deductible-based health insurance plan

A fund or account that you can use to help pay for qualified, out-of-pocket medical expenses

Interactive tools and information to help you make informed health care decisions

How Do Consumer-Directed Health Plans How Do Consumer-Directed Health Plans Work?Work?

Preventive Care Covered at 100%

All Other Care

Health care FUND for out-of-pocket

medical expenses

1 2

You pay medical expenses until you meet DEDUCTIBLE

3Underlying

insurance plan provides coverage

with COINSURANCE or COPAY

Out of Pocket Maximum

Information and Decision Support Tools

HSA – Health Savings AccountHSA – Health Savings Account The plan includes two components, the underlying The plan includes two components, the underlying medicalmedical plan, and a Health Savings Accountplan, and a Health Savings Account The underlying medical plan is deductible based, The underlying medical plan is deductible based, thereforetherefore the deductible must be satisfied before any expenses arethe deductible must be satisfied before any expenses are payable, with the exception of preventative payable, with the exception of preventative Once the deductible is satisfied a percentage of expenses Once the deductible is satisfied a percentage of expenses areare paid by the planpaid by the plan

$2,500 ee/$5,000 family – In Network$2,500 ee/$5,000 family – In Network $3,000 ee/$6,000 family – Out-of-Network$3,000 ee/$6,000 family – Out-of-Network

The provider network for the HSA is the same as the PPO The provider network for the HSA is the same as the PPO planplan The second component of the plan, is an account that youThe second component of the plan, is an account that you can use to help pay for qualified out-of-pocket expensescan use to help pay for qualified out-of-pocket expenses Long-term investment optionsLong-term investment options Unused account balances roll over year-to-yearUnused account balances roll over year-to-year The account is yours to keep even if you change The account is yours to keep even if you change employersemployers or medical plansor medical plans You determine how & when your Health Savings AccountYou determine how & when your Health Savings Account dollars are useddollars are used

How does a Health Savings Account How does a Health Savings Account (HSA) Work? (HSA) Work?

Health Savings Account

Contribute tax free

Reimburse qualified expenses tax free

Save for future expenses

Grow the account with interest and/or choose the HSA investment services offered

Medical and Prescription Drug

Plan Benefits

Preventive care covered at 100%

Meet the plan deductible), then

Pay coinsurance

Out-of-pocket maximum limits amount you pay annually

Manage Your Health Care

Secure, personalized online services

Track HSA activity, monitor savings

Find a doctor, estimate cost of care, compare hospitals

Research health topics and medications

How Much May I Contribute to my HSA?How Much May I Contribute to my HSA?

2008 annual maximum2008 annual maximum $2,900 per individual$2,900 per individual $5,800 per family$5,800 per family

Catch Up ContributionsCatch Up Contributions Individuals age 55 to 64Individuals age 55 to 64 $900 for 2008$900 for 2008 Amount increases $100 per year until Amount increases $100 per year until

20092009

If age 65+ and enrolled inIf age 65+ and enrolled in Medicare Part A Medicare Part A or Bor B HSA may remain openHSA may remain open No additional contributions can be madeNo additional contributions can be made

The Value of Tax-Advantaged HSA The Value of Tax-Advantaged HSA Savings* Over TimeSavings* Over Time

Annual Contribution Annual Contribution AmountsAmounts

Tom, Age 39Tom, Age 39 $1,000$1,000 $2,000$2,000 $3,000$3,000

Total Savings for Future Total Savings for Future Medical Expenses** (at Medical Expenses** (at age 65)age 65)

$34,34$34,3433

$68,68$68,6877

$103,03$103,0322

Annual Tax SavingsAnnual Tax Savings $330$330 $660$660 $990$990

Accumulated Tax Accumulated Tax Savings (at age 65)Savings (at age 65) $8,580$8,580 $17,16$17,16

00$25,740$25,740

*Employers and employees should consult with a tax advisor to determine eligibility requirements and tax advantages associated with participating in the Aetna HealthFund HSA plan.**Based on an estimated 2 percent investment rate of return each year. Assumes member is in the HSA for an entire year and contributing up until the age selected (65) and that the contribution rate and interest rate selected remain constant until the age that the member stops contributing.

HRA – Health Reimbursement AccountHRA – Health Reimbursement Account

The plan pays the first $500 (ee only) or $1,000 (family)The plan pays the first $500 (ee only) or $1,000 (family)

covered expenses at 100%covered expenses at 100% Any remaining fund amounts ($500/$1,000) can be Any remaining fund amounts ($500/$1,000) can be

rolled over to the next plan yearrolled over to the next plan year Once the health fund is exhausted, you will need toOnce the health fund is exhausted, you will need to

satisfy a deductiblesatisfy a deductible $3,000 ee/$6,000 family – In Network$3,000 ee/$6,000 family – In Network $6,000 ee/$12,000 family – Out of Network$6,000 ee/$12,000 family – Out of Network

Expenses paid by your health fund also reduce theExpenses paid by your health fund also reduce the

deductibledeductible Preventative services payable at 100%. The health fund Preventative services payable at 100%. The health fund andand

and deductible is waived.and deductible is waived. Plan uses the same provider network as the PPO planPlan uses the same provider network as the PPO plan You determine how & when your health fund dollars are You determine how & when your health fund dollars are used.used. Unused health fund balance is forfeited when you move toUnused health fund balance is forfeited when you move to

another plan or terminate employmentanother plan or terminate employment

How Does a Health Reimbursement How Does a Health Reimbursement Account (HRA) Work?Account (HRA) Work?

HRA 5, 12/06 ]

The Fund

Use your employer-provided fund to pay for eligible medical expenses.

Rollover: Unused fund balance rollsover to next year’s fund balance.

The Deductible

If the fund is exhausted, you pay for the remaining or future expenses until your deductible is met.

The Base Insurance Plan

If the fund is exhausted and the deductible met, your base insurance plan begins to pay toward covered expenses. You pay a coinsurance amount for eligible expenses.

HMO – Health Maintenance OrganizationHMO – Health Maintenance Organization(Not available in all locations)(Not available in all locations)

Selection of a Primary Care Provider (PCP) Selection of a Primary Care Provider (PCP) is required. Your PCP will manage your is required. Your PCP will manage your overall care.overall care.

The plan does not have a deductibleThe plan does not have a deductible

You pay a fixed dollar co-pay for office You pay a fixed dollar co-pay for office visits & preventative carevisits & preventative care

A referral from your PCP is required for A referral from your PCP is required for services not provided by the PCPservices not provided by the PCP

There is no out-of-network coverageThere is no out-of-network coverage

You will pay a higher premium to have a You will pay a higher premium to have a flat dollar co-pay for office visitsflat dollar co-pay for office visits

PPO – Preferred Provider PPO – Preferred Provider OrganizationOrganization

You pay a fixed dollar co-pay for You pay a fixed dollar co-pay for office visits & preventative careoffice visits & preventative care

You must satisfy the deductible You must satisfy the deductible before any expenses, other than before any expenses, other than office visits are payableoffice visits are payable

Plan includes out of network Plan includes out of network coverage, at reduced reimbursementcoverage, at reduced reimbursement

The most expensive premium for the The most expensive premium for the least amount of benefitsleast amount of benefits

Open Enrollment Tools and Open Enrollment Tools and SupportSupport

Aetna Navigator, Your Secure Aetna Navigator, Your Secure Personal Website…Personal Website…www.aetnanavigator.comwww.aetnanavigator.com Take a tour of the website’s key features Take a tour of the website’s key features Estimate the Cost of Care Suite of ToolsEstimate the Cost of Care Suite of Tools Health Information on conditions & alternative Health Information on conditions & alternative optionsoptions Quality of participating providersQuality of participating providers 24 x 7 availability24 x 7 availability

Online TutorialsOnline Tutorials HSA and HRA plansHSA and HRA plans

HSA Savings CalculatorHSA Savings CalculatorExplore the savings potential of an HSAExplore the savings potential of an HSA

NEW FOR 01/01/08 NEW FOR 01/01/08 SRC – LIMITED MEDICAL PLANSSRC – LIMITED MEDICAL PLANS

Staff & core benefit eligible employees will be Staff & core benefit eligible employees will be eligible for eligible for SRC during the 90-day probationary periodSRC during the 90-day probationary period

There are two plan options available, $5,000 orThere are two plan options available, $5,000 or $10,000 plan maximum$10,000 plan maximum

The plan provides limited coverage for office visits, The plan provides limited coverage for office visits, pharmacy expenses, hospital servicespharmacy expenses, hospital services

Access to Aetna’s negotiated provider discounts Access to Aetna’s negotiated provider discounts usually usually discounts average 40% - 60%)discounts average 40% - 60%)

Provides employee’s a low cost alternative other Provides employee’s a low cost alternative other than than continuing COBRA coverage during benefit waiting continuing COBRA coverage during benefit waiting periodperiod

2008 Plan Design Changes2008 Plan Design Changes

HSA – No changesHSA – No changesHRA – No changesHRA – No changesHMO HMO

PCP - $40, Specialist $50 Co-paysPCP - $40, Specialist $50 Co-pays Rx - $15/$20/50%Rx - $15/$20/50% Inpatient & Outpatient Co-insurance – Inpatient & Outpatient Co-insurance –

70%/30%70%/30%PPO PPO

Inpatient Co-insurance – 70%/30%Inpatient Co-insurance – 70%/30% Outpatient Co-insurance – 50%/50%Outpatient Co-insurance – 50%/50%

2008 Open Enrollment2008 Open Enrollment

October 22 – November 4October 22 – November 4www.pdstech.com/benefits2008.comwww.pdstech.com/benefits2008.com

No password requiredNo password required Plan DesignsPlan Designs Tutorials – Aetna Navigator, HSA and HRA Plans, Tutorials – Aetna Navigator, HSA and HRA Plans,

Printing ID Cards, etc.Printing ID Cards, etc.

www.pdstech.essbenefits.comwww.pdstech.essbenefits.com Requires social security # and passwordRequires social security # and password

SSN entered as numerals onlySSN entered as numerals onlyPassword is reset to MMYY of date of birthPassword is reset to MMYY of date of birth

Print confirmation statements onlinePrint confirmation statements onlineNo mailing of confirmation statementsNo mailing of confirmation statements

Open Enrollment QuestionsOpen Enrollment Questions

PDS Benefits WebsitePDS Benefits WebsiteJulie Barton – ext 10135Julie Barton – ext 10135Lorri Bloom – ext 10132Lorri Bloom – ext 10132Jathan Van Winkle ext 10145Jathan Van Winkle ext 10145

Benefits WebsitesBenefits Websites

Aetna – Aetna – www.aetna.comwww.aetna.comVSP – Vision Service Plan - VSP – Vision Service Plan -

www.vsp.comwww.vsp.comHyatt Legal – Hyatt Legal – www.legalplans.comwww.legalplans.comPersonal Care – Personal Care –

www.personalcare.orgwww.personalcare.org