2014-2015ARIZONA WESTERN

COLLEGE

Dr. Ruth Whisler and Mrs. Patricia Jimenez 1

The most important papers -

Ruth Notes (concept borrowed from Cliff Notes)

PowerPoint will be on the HR website

Most important Dates – (next slide)

Questions at the end, please.

BEFORE WE BEGIN -

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Dates to Remember!

Enrollment period: May 5th – May 15th

Deadline for making changes: May 15th

Changes effective: JULY 1, 2014

YOUR Benefits Expert: Patty Jimenez

Patty.jimenez@azwestern.edu – x76037

2014/2015 BENEFIT YEAR

Dates are non-changeable

3

Consortium – Self Insured

Yuma Area Benefits Consortium AWC, City of Yuma,

Crane Elementary District, Yuma School District One

Traditionally: Annual premium increase, absorbed by AWC

This year costs increased again – 12% for Plan A; 3% HDHP

(High Deduct ible Health Plan)

Cannot absorb – SO

AWC continues to keep premium costs to employees equitable

BRIEF HISTORY OF INSURANCE BENEFITS

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High Deductible Health Plan (HDHP) - (Misnamed)

Available with or without dental coverage

Vision is includedLife is part of AWC

packageHSA (Health Savings Account)

– auto rollover (Optional benefit)

Plan A (Needs a new name)

Available with or without dental coverage

Vision is includedLife is part of AWC

packageFSA (FLEX Spending Account)

- enroll each year (Optional benefit)

TODAY: TWO PLANS

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Not under AWC Control

Premium increases for both plans. Plan A – 12%

High Deductible Health Plan (HDHP) -- 3%

Under AWC Control

AWC will pay $510/month toward each full time employee’s health care benefi ts ($6,120/year)

Th is means :

I f you are on P lan A : AWC wi l l pay $510 /month for fu l l t ime employee premiums (with and without denta l )

I f you are on HDHP: AWC wi l l cont inue to pay the fu l l premium for the employee (w ith and without denta l coverage)

AND - AWC wi l l contr ibute $1 ,536 to each member ’s HSA account – Ju ly 1 , 2014

You reta in contro l over which p lan you choose for yourse l f and your dependents .

THINGS YOU SHOULD KNOW BEFORE WE CONTINUE…LOCUS OF CONTROL

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Medicare IRS Pub.969, p 6 2013 -

Bottom line: Medicare prohibits HSA.

You may participate in the HDHP even if you have Medicare.

But, beginning the first month you are enrolled in Medicare, you cannot contribute to an HSA

IRS 1040 FilingsIf you use the account

during the calendar year, you must fi le Form

8889 (very short). It simply reports contributions.

Box 12 of your W-2, Wage and Tax Statement from your employer will contain the amount AWC contributed to your HSA

IRS REGULATIONS : HEALTH SAVINGS ACCOUNTS

NOTE: These important items should be discussed with your tax preparer or financial consultant. AWC is not a tax service nor responsible for interpreting IRS regulations.

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HEALTH SAVINGS ACCOUNTFORM 8889

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Let’s look at the breakdown of costs and coverage

AWC CONTRIBUTES TO YOUR COVERAGE

REGARDLESS OF YOUR CHOICE OF

PLAN

9…

High Deductible with Dental

Arizona Western College Cost

Coverage Category

Employee Cost Subsidy + EE Rate

Total Premium

Employee ONLY

- $382.00 - $ 382.00

EE + Child(ren)

$291.00 $ 54.00 $382.00 $ 727.00

EE + Spouse $330.00 $ 59.00 $382.00 $ 771.00

EE + Family $509.00 $ 68.00 $382.00 $ 959.00

PREMIUMS FOR HIGH DEDUCTIBLE (HDHP) [EMPLOYEE & DEPENDENTS]

MEDICAL, VISION AND PRESCRIPTION

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High Deductible without Dental

Employee ONLY

- $345.00 - $ 345.00

EE + Child(ren)

$257.00 $ 54.00 $345.00 $ 656.00

EE + Spouse $292.00 $ 59.00 $345.00 $ 696.00

EE + Family $452.00 $ 68.00 $345.00 $ 865.00

Benefit DescriptionHigh Deductible (HDHP)

with Health Savings Account (HSA)[HSA Employer Contribution $1,536/year

- delivered to your account on July 1, 2014]

In-Network Out-of-Network

Annual Deductible $1,500/person$3,000/family

$3,000/person$6,000/family

Coinsurance 85% 60%

Office Visit After deductible is met insurance pays 85%

After deductible is met insurance pays 60%

Out-of-Pocket Max $3,000/person$6,000/family

$8,000/person$16,000/family

Maximum Annual Benefit

New: No ceiling (cap) for benefit coverage

HIGH DEDUCTIBLE – BENEFIT DESCRIPTION – IF YOU ARE NOT COVERED

BY MEDICARE

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IRS Pub. 969, p. 2 (2013) You can claim tax

deduction for contributions you or anyone except your employer make to your account

Employer contributions may be excluded from your gross income

Contributions remain in your account until you use them

And….Interest & other earnings

are tax freeDistributions may be tax

free if used for qualified medical expenses

HSA is portable – goes with you

Qualified Medical Expenses are those incurred by you, spouse, dependents claimed on your tax return

HEALTH SAVINGS ACCOUNT BENEFITS –IF NOT ON MEDICARE

NOTE: AWC and the presenters of these slides do not take responsibility for IRS changes in rules. DO speak with your financial consultant or tax preparer.

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Plan A with Dental Arizona Western College Cost

Coverage Category

Employee Cost Subsidy + EE Rate

Total Premium

Employee ONLY

$ 57.00 $510.00 - $ 567.00

EE + Child(ren)

$492.00 $ 75.00 $510.00 $1,077.00

EE + Spouse $549.00 $ 83.00 $510.00 $1,142.00

EE + Family $806.00 $103.00 $510.00 $1,419.00

PREMIUMS FOR PLAN A [EMPLOYEE & DEPENDENTS]

MEDICAL, VISION AND PRESCRIPTION

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Plan A without Dental

Employee ONLY

$ 20.00 $510.00 - $ 530.00

EE + Child(ren)

$421.00 $ 75.00 $510.00 $1,006.00

EE + Spouse $474.00 $ 83.00 $510.00 $1,067.00

EE + Family $712.00 $103.00 $510.00 $1,325.00

Benefit Description Plan A

In-Network Out-of-Network

Annual Deductible $750/person$1,500/family

$1,500/person$3,000/family

Coinsurance 80% 50%

Office Visit $20 copay 50%

Out-of-Pocket Max $5,250/person$10,500/family

$9,000/person$9,000/person

Maximum Annual Benefit

New: No ceiling (cap) for benefit coverage

PLAN A - BENEFIT DESCRIPTION

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Let’s look at actual out of pocket costs in and out of network,

Health Savings Accounts & Flexible Savings Accounts,

and more benefits provided at no cost to our employees!

LET’S COMPARE….

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Monthly Rates for Medical, Dental, Vision and Prescription

Plan A with Dental

Plan A without Dental

HDHP with Dental

HDHP without Dental

Employee $ 57.00 $ 20.00 -- --

Child(ren) $492.00 $421.00 $291.00 $257.00

Spouse $549.00 $474.00 $330.00 $292.00

Family $806.00 $712.00 $509.00 $452.00

2014-15 - WHAT WILL I PAY? EMPLOYEE AND DEPENDENT

COVERAGE

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OUT OF POCKET COMPARISON

Plan A: Out of Pocket (OOP) maximum: deductible, copays, and coinsurance all accumulate to the out of pocket maximum - In Network

Per Person : $5,250 per year (7/1/14—6/30/15)Per Family : $10,500When met: Insurance pays 100% of costs2013-14 Per Person: $3,000

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

HDHP : Per Person : $3,000 per year (7/1/14—6/30/15)

Per Family: $6,000 When met: Insurance pays 100% of everything2013-14 Per Person: Same

WHAT DOES IT REALLY MEAN? COMPARISON : IN NETWORK– HDHP & PLAN A

Remember – July-June, not calendar year 17

Plan A: Out of Pocket (OOP) maximum: deductible, copays, and coinsurance all accumulate to the out of pocket maximum - In Network

Per Person : $9,000 per year (7/1/14—6/30/15)Per Family : $9,000/person – total fi gure depends upon

persons in familyWhen met: Insurance pays 100% of costs2013-14 Per Person: $9,000

___________________________________________________________

HDHP: Per Person : $8,000 per year (7/1/14—6/30/15)

Per Family: $16,000 When met: Insurance pays 100% of costs2013-14 Per Person: Same

COMPARISON – OUT OF NETWORK

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Health Savings Account: HDHP Program Contribution Limits for 2014-15:

$3,300 for Single; $6,550 for Family (This includes the employer contribution.) If you are 55+, your contribution limit is increased by $1,000 (IRS Pub 969, p.5)

Benefi ts: AWC “up fronts” the fi rst level of deduction : $1,536. You can add to your HSA account through payroll deduction for the

time and amount you choose . Be sure to work with Mrs. Patty J imenez to make this happen: patricia. j imenez@azwestern.edu

Stays with you. It’s your money even if you change jobs. NO “use it or lose it” conditions. Your money rolls over into the next year. Reduces your taxable income: The money remains tax-free when you deposit and

withdraw for qualified medical expenses. Pays for insurance deductibles, medical care and supplies that are not typically

covered by medical insurance such as prescription medicines, dental, LASIK eye surgery and much more.

HSA Investment Account is available online at www.efl exgroup.com

HEALTH SAVINGS ACCOUNT (HSA) –

AWC GIVES TO EMPLOYEES

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How it Works: You and AWC deposit money into your eflexHSA for current

and future medical expenses.

You’ll receive an eflex debit card to use for eligible medical expenses.

Acts as a debit card - swipe the card at the time of purchase and funds are automatically withdrawn from your account and paid directly to the provider. Card can also be used for on-line and

US mail bill payments (hospital or provider).

Even if you’re no longer covered under the HDHP, eflexHSA can remain active, you just won’t be able to contribute funds.

Reimbursement/Withdrawal – You can make a withdrawal at any time. Request your distribution online, funds will be sent via direct deposit to your checking or savings account within five days.

(1099 will be issued)

YOUR HEALTH. YOUR MONEY. YOUR CONTROL.

See your financial consultant for specific data.

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Reduce your taxable income by what you spend on non-reimbursable medical and dependent care expenses.

2014-15 Maximums: How much can I select? $2,500 Health $5,000 Dependent Care You select your deduction at the beginning of the

benefit year and it remains stable until the next Open Enrollment period

VERY IMPORTANT Even if you are currently enrolled in the Flexible

Spending Account, you MUST enroll for each plan year.

This is a “use it or lose it” account. It does not roll over nor follow you when you leave employment.

FLEXIBLE SPENDING ACCOUNT(FSA) – PLAN A

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Note: You can check the cost of your prescriptions to determine if this is the best plan for you. (Phone or on-line options.)

As easy as 1, 2, 3….1. Your doctor writes your prescription for a 90-day supply,

plus 3 refi lls within a single year2. Complete the order form3. Mail the form, original prescriptions and payment

information to: Catamaran Home Delivery – 1-800-881-1966

PO Box 407096 – Ft. Lauderdale FL 33340-7096 For additional information, please visit :

www.mycatamaranRx.comNote: You pay full cost of prescriptions until deductible is met.

MAIL ORDER OPTION -- PRESCRIPTIONS: CATAMARAN HOME DELIVERY

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AWC will continue to pay 100% of Life Insurance AND Short Term Disability Insurance premiums for full time employees.

Life Insurance Benefi t: $20,000 per individual/first two years of

employment 2.5 times your gross annual salary after two years

of service

Short Term Disability Benefi t: In the event of an illness or disability in excess of 60 calendar days: 66.67% (2/3) of weekly earnings up to a max of $1,000 For a maximum of 26 weeks - FMLA in the mix

AWC-PROVIDED LIFE INSURANCE & SHORT TERM DISABILITY

INSURANCE

Please see Mrs. Patty Jimenez for individual questions about this benefit.

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Sun Life Benefit – More than 100 Miles from Home - Part of the Package

Assist America – 24/7, 365

Med Consultation, Evaluation, Referral Hospital Admission Guarantee Emergency Medical Evacuation Critical Care Monitoring Medical Repatriation Prescription Assistance Emergency Trauma Counseling Compassionate Visit Care of Minor Children Legal & Interpreter Referrals Return of Mortal Remains

** EMERGENCY TRAVEL ASSISTANCE

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There’s

MORE WAIT, WAIT,

25….

SunLifeAvailable for full time employees and dependents Purchase additional Life Insurance through convenient

payroll deductions. Cost is based on age.

Employee – Guarantee to employee : $100,000 (no physical).

Spouse – 1/2 of employee coverage up to a maximum of $25,000.

Children – up to a maximum of $5,000 for each child. Your dependents may ONLY be covered if the employee is

enrolled in this optional benefit.

OPTIONAL (ADDITIONAL) LIFE INSURANCE BENEFITS

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AETNA EAP {Employee Assistance Plan}

Free, confidential support for you and anyone living in your household to help you balance the demands of work, life and personal issues.

Assessment & short term counseling – 10 Visits.

24 hour crisis intervention line.

Referrals to other resources as needed.

1-888-238-6232, or visit www.AetnaEAP.com

Note: There is an AWC security code required for this service. This code is available in Human Resources and your benefits packet.

EMPLOYEE ASSISTANCE PLAN

Log in: Aetna EAP27

MUST know:

ALL employees must complete an Election form– EVEN if you are NOT making any changes.

If you are switching from PLAN A to HDHP, you will need the following:

A new Enrollment An eflex form A voided check

and

FSA (Flexible Spending Account) – You will need to complete the PayFlex form in order to be or remain enrolled.

REMINDERS – “MUST KNOW” INFO -

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Final things to Remember: Patty Jimenez – x76037

FINAL HOT ITEMS --

These are definite dates; they cannot be altered. 29

Everyone must complete the Election Form. (Even if you have no changes.)

All forms are available on the Human Resources website, in this room today, and in the HR suite.

Submit all forms to H.R. no later than close of day,

May 15

All changes are effective July 1, 2014.

Thank You, Dr. Ruth Whisler

Mrs. Patty O. Jimenez

INDIVIDUAL QUESTIONS WILL BE ANSWERED AT THE CONCLUSION

OF THE PRESENTATION – OR COME TO HR

PATTY.JIMENEZ@AZWESTERN.EDU

X76037 30…