2013 Employee Benefits Presentation

Annual EnrollmentPlan Year: January 1, 2013 – December 31, 2013

Our insurance plans are designed to help you attain the health and dental services you need on a regular basis as well as to protect you against a catastrophic financial loss in the event of a serious health condition, disability or death. They represent a significant part of the total compensation package you have with Hoffman & Hoffman, Inc. Please review the employee benefits package carefully, and don’t hesitate to ask questions.

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Overview● Introduction● Medical Plan

– Payroll Deductions– Medical Benefits/Features– Claims Examples– HSA’s

● Other Benefits– Consult-A-Doctor– Health Advocate – Dental– Life– Disability– Flexible Spending

● Things to Remember● What’s Next

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Introductions – H&H & Senn Dunn

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Three ways to get help when you need it:1. Human Resources2. Senn Dunn Insurance3. HealthAdvocate (24/7 - starting 1/1/2013)

Teresa LongAccount ManagerDirect: 336-544-6829tlong@senndunn.com

Annual Open Enrollment

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Benefits start over January 1, 2013

This is the time of year to make changes

Everyone enrolled in either Medical plan and/or either Dental plan, will get new ID Cards

If your change requires any additional information, HR will let you know.

Medical Payroll Deductions

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Monthly Rates HSA Plan Traditional PlanEmployee Only $ 45.00 $ 76.30

Employee + Spouse $ 425.00 $ 654.00Employee/ Child(ren) $ 350.00 $ 545.00

Family $ 575.00 $ 880.72

Tax-Advantaged OptionsHoffman & Hoffman, Inc. HSA Contribution

Employee Can Participate in FSA

$160 in Jan and then $40.00/mo Feb-Dec =

$600/yr You can also set aside more

You can set aside up to $2,500 pre-tax to save for out of pocket medical costs

Medical Plan Benefits

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Benefit Overview HSA Plan Traditional PlanMedical Individual Deductible Family Deductible Coinsurance Individual Coinsurance Maximum Family Coinsurance Maximum Individual Out-of-Pocket Maximum Family Out-of-Pocket Maximum Lifetime Maximum

$1,500*$3,000*

20%$3,000$6,000$4,500$9,000

Unlimited

$1,000$3,000

20%$3,000$9,000$4,000

$12,000Unlimited

Physician Services Primary Care Office Visits Specialist Office Visits

Ded then 20% CoinsuranceDed then 20% Coinsurance

$25 Copay$40 Copay

Wellness & Preventive Routine Physical Exams Routine Eye Exams Pap/ Mammograms/ PSA Immunizations Colonoscopies (Preventive Only)

100% Covered100% Covered100% Covered100% Covered100% Covered

100% Covered100% Covered100% Covered100% Covered100% Covered

*On HSA Plan, Family Deductible is Non-Embedded.

Medical Plan Benefits

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Benefit Overview HSA Plan Traditional PlanLab and X-Ray In Office Out of Office MRI, CAT & PET

Ded then 20% CoinsuranceDed then 20% CoinsuranceDed then 20% Coinsurance

$25 / $40 CopayDed then 20% CoinsuranceDed then 20% Coinsurance

Inpatient Services Physician Hospital

Ded then 20% CoinsuranceDed then 20% Coinsurance

Ded then 20% CoinsuranceDed then 20% Coinsurance

Outpatient Services Physician Hospital

Ded then 20% CoinsuranceDed then 20% Coinsurance

Ded then 20% CoinsuranceDed then 20% Coinsurance

Other Services Emergency Room Services Urgent Care Co-pay Chiropractic Care

Ded then 20% CoinsuranceDed then 20% CoinsuranceDed then 20% Coinsurance

$150 Copay$ 40 Copay$ 40 Copay

Prescription Drug Benefits

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Benefit Overview HSA Plan Traditonal PlanPrescription Drugs (30-day supply) Many Preventive Generics Tier 1 (Generic)

Tier 2 (Preferred Brand)Tier 3 (Non-Preferred Brand)

Tier 4 (Specialty Rx)

Many Covered 100%Ded then 20% CoinsuranceDed then 20% CoinsuranceDed then 20% CoinsuranceDed then 20% Coinsurance

Many Covered 100%$ 4 Copay$ 25 Copay$ 40 Copay$250 Copay

Mail Order (90-day supply)Tier 1 (Generic)Tier 2 (Preferred Brand)Tier 3 (Non-Preferred Brand)

Tier 4 (Specialty Rx)

Ded then 20% CoinsuranceDed then 20% CoinsuranceDed then 20% CoinsuranceDed then 20% Coinsurance

$ 8 Copay$50 Copay$80 Copay

$500 Copay

Health Savings Account

● Who can have an HSA?

● Who contributes to my HSA?

● How much can I contribute?

● How is an HSA like an FSA? How is it different?

● Are their fees associated with an HSA?

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Hoffman & Hoffman, Inc. will contribute $600/yr

Claims Example: Preventive ExamHSA Plan Traditional Plan

Office Visits 100% paid 100% paidHSA annual contribution $600 N/ASpends out-of-pocket $0 $0Annual payroll deduction $540 $915.60

Final Annual EE out-of-pocket(total paid for care & premium)

$540, and you have $600 in your

Health Savings Account

$915.60

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Employee Only Coverage● Fairly healthy individual

whose only medical care for the year was a preventive exam with a primary care physician

● $750 annual exam

TOTAL Cost = $750Could have saved $375.60 and still have $600 in HSA Account

Claims Example: Common IllnessHSA Plan Traditional Plan

Deductible $205 N/A

Coinsurance N/A N/A

Office Visits $160 $50 copays

Rx $45 $12 copays

Spends Out-of-pocket $205 $62 copays

- HSA annual contribution -$600 N/A

Total paid for Care $0($205 from HSA) $62

Annual payroll deduction $540 $915.60

Final Annual EE out-of-pocket(total paid for care & premium)

$540 ($395 left in

HSA)$977.60

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Employee Only Coverage● Overall healthy individual with

a couple sick care office visits and prescriptions throughout the year (e.g., sinus infection, strep throat)

● $160 annually in office visits– Estimated 2 office visits (not

preventive) at contracted rate of $80 each

● $45 annually in Rx– Estimated 3 generic medications at

$15 each

TOTAL Cost= $205Could have saved $437.60 and still have $395 in HSA Account

Claims Example: Common IllnessHSA Plan Traditional Plan

Deductible $750 N/A

Coinsurance N/A N/A

Office Visits $480 $150 copays

Rx $270 $99 copays

Spends Out-of-pocket $750 $249 copays

- HSA annual contribution -$600 N/A

Total paid for care $150($600 from HSA) $249

Annual payroll deduction $6,900.00 $10,568.64

Final Annual EE out-of-pocket(total paid for care & premium)

$7,050.00 $10,817.64

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Family Coverage● Overall healthy family with a

few sick care office visits and prescriptions throughout the year (e.g., sinus infection, strep throat)

● $480 annually in office visits– Estimated 6 office visits

(not preventive) at contracted rate of $80 each

● $270 annually for Rx – Estimated 6 generic medications at $15

each– Estimated 3 preferred brand name

medications at $60 each

TOTAL Cost = $750

Could have saved $3,767.64

Claims Example: Chronic ConditionEmployee Only Coverage● Chronic condition such as high blood

pressure or diabetes that requires several office visits and medications throughout the year

● $1360 annually for office visits– Estimated 8 office visits (2 PCP

average $80 each & 6 specialist average $200 each

● $4080 annually for Rx– Estimated 4 monthly preferred brand

average $60 each & 1 monthly non-preferred brand average $100 each

TOTAL Cost = $5,440

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HSA Plan Traditional PlanDeductible $1,500 N/ACoinsurance N/A N/A Office Visits $1,360 $290 copays

Rx $928 ($140 remaining Ded then $788 Coins) $1,680 copays

Spends out-of-pocket $2,288 $1,970 copays

- HSA annual contribution -$600 N/A

Total paid for care $1,688 ($600 from HSA) $1,970

Annual payroll deduction $540 $915.60Final Annual EE out-of-pocket(total paid for care & premium)

$2,228.00 $2,885.60

Could have saved $657.60

Claims Example: Chronic ConditionFamily Coverage● Chronic condition such as high blood

pressure or diabetes that requires several office visits and medications throughout the year

● $2,720 annually for office visits– Estimated 16 office visits (4 PCP,

average $80 each & 12 SPC average $200 each

● $8,160 annually for Rx– Estimated 8 monthly preferred brand

average $60 each & 2 monthly Non-preferred brand average $100 each

TOTAL Cost = $10,880

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HSA Plan Traditional Plan

Deductible $3,000 N/ACoinsurance N/A N/A Office Visits $2,720 $580 copays

Rx $1856 ($280 remaining Ded then $1576 Coins) $3,360 copays

Spends Out-of-pocket $4,576 $3,940 copays

-HSA annual contribution -$600 N/A

Total paid for care $3,976($600 from HSA) $3,940

Annual payroll deduction $6,900.00 $10,568.64Final Annual EE out-of-pocket(total paid for care & premium)

$10,876 $14,508.64

Could have saved $3,632.64

Which plan is right for me?

● Consider general health, family history, and historical utilization

● Consider your monthly prescription costs

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Other Benefits● Consult-A-Doctor● Health Advocate ** New Benefit● Voluntary Dental – now Reliance Standard, small increase● Life/Disability – now Reliance Standard, Open Enrollment

– Rates will only change if you make a change or move to the next Age Bracket● FSA – now Stanley Benefits – Lower Healthcare max ($2,500)

– Health Care FSA (cannot be used with HSA Plan)– Dependent Care FSA (can be used with BOTH plans!)

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Consult-A-Doctor

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● 24/7 telephonic access to physicians at no cost to you● Available to all employees, enrolled in medical or not● Can cover 5 dependents● When to use:

– For non-emergent, common conditions – When you can’t miss work– After hours or on weekends– When you are traveling– When you need a prescription or refill– REGISTER ASAP IF YOU HAVENT ALREADY: then its ready

when you need it

Available to those enrolled on either of the 2 medical plans

Health Advocate

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Available to those enrolled on either of the 2 medical plans

Dental Plan Benefits: ** Now Reliance Standard

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Benefit Overview Low Plan High PlanBenefit Maximum Per Year $1000 per Member

Preventive CareRoutine Exam, 2 Cleanings per Year, Flouride Treatments and Emergency Pain Relief

Covered 100% of Usual & Customary

Deductible $50 Individual or $150 Family max

Basic Services Diagnostic X-Rays, Fillings, Extractions

Benefits are paid at 80% of Usual & Customary Pricing

Major Services Endodontics, Oral Surgery, Periodontics, Crown, Bridges, Dentures

Not CoveredBenefits are paid at

50% of Usual & Customary

Orthodontia Not CoveredCovered at 50% up

to a lifetime Maximum coverage

of $1000

Waiting PeriodNone on any services as long as you enroll

when 1st eligible or at Annual Open Enrollment

Basic Company Paid Life & AD&D** now Reliance Standard

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1x Salary to $50,000

Supplemental Life** now Reliance Standard

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Employee LifeYou can elect coverage in $25,000

increments up to $100,000, not to exceed 5 x your salary

** New Benefit: Spouse AmountSpouse can elect $10,000 increments up

to 50% of the employee’s elected amount to a maximum of $50,000

** New Benefit: Child Amount: $10,000

Guaranteed Issue Employee: $100,000Spouse: $20,000

This is a true open enrollment period for the Supplement Life: You may elect up to $100,000 on yourself or increase the Vol Life you already have on yourself up to $100,000 with no questions. You

may also now elect Spousal Life up to $20,000 and Child Life of $10,000 with no questions.

Voluntary Short-Term Disability** new benefit Reliance Standard

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Monthly Benefit 60% of your salary to a maximum weekly benefit of $1,250/week

Benefits Begin 31st day after injury or illness

Maximum Benefit Period 180 days

This is a true open enrollment period for Voluntary Short-Term Disability

Voluntary Long-Term Disability** now Reliance Standard

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Monthly Benefit 60% of your salary to a maximum monthly benefit of $3,000/month

Benefits Begin 6-months after injury or illness

Maximum Benefit Period ADEA (retirement)

This is a true open enrollment period for Voluntary Long-Term Disability

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A flexible spending account (FSA) allows you to set aside pre-tax dollars for out-of-pocket medical, dental, vision and dependent care expensesWe are talking about money you are already spending, so let’s avoid some taxes!!

● Dependent Care FSA – Maximum – $5,000– Funds are only available as they are taken out of your paycheck– Everyone is eligible to participate

Flexible Spending Accounts** now Stanley Benefits

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● Health Care FSA– Maximum – $2,500– Full amount is available at the beginning of the plan year

● “Use It or Lose It” Rule● Debit Card – gives you immediate access to your spending account

without paying out of pocket and waiting for reimbursement● Card will track receipts but always good idea to keep your receipts

anyway

Flexible Spending Accounts** now Stanley Benefits

Lower 2013 Max

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Health Care FSA: You are eligible if you enroll in the Traditional Plan or waive coverage

Eligible expenses include: Doctor office visit co-pays Prescription drug co-pays Dental services Orthodontia Eye glasses Contacts and lens solution Eye surgery

Flexible Spending AccountsStanley Benefits

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Everyone will receive a Personalized Open Enrollment Form which will be pre-filled with your current 2012 elections

All you will need to do is check “Keep my election the same” under each benefit, medical, dental, etc, or check the box to “Change my Election” and indicate the coverage you wish to have for 2013.

These forms must be turned in by Friday, December 7th!H&H employees turn in to Amanda Harton.HBT employees turn in to Christine Flowe.

Personalized Enrollment Form

Things to remember:● Everyone must turn in their personalized Open Enrollment Form by Friday,

December 7th. (H&H to Amanda and HBT to Christine)

● If moving to HSA Plan, you should open an HSA bank account so that you can contribute but also receive the Hoffman & Hoffman, Inc. monthly contribution. See Amanda or Christine for details.

● If you are on the Traditional plan, utilize FSA through Stanley Benefits

● Everyone must turn in a 401(k) election form by Friday, December 14th.

● This has been a summary overview of employee benefits provided/offered by Hoffman & Hoffman, Inc. – See Plan Documents for details

● Call Senn Dunn if you have any questions 800-598-7161, Teresa Long

● Questions ???????29

Deadline:

12/7/12