2014 open enrollment
- 1. 2014 PLAN YEAR ANNUAL OPEN ENROLLMENT GUIDE Department of Human Resources October 2013
- 2. IMPORTANT OPEN ENROLLMENT DATES Annual Open Enrollment Election Period: Pre-Open Enrollment Educational Sessions: NOVEMBER 15TH – 29TH, 2013 TUESDAY, NOVEMBER 5TH • 9:00 AM - DSU Annex A210 • 10:30 AM – DSU Auditorium (DFM) • 2:00 PM – WAB Room 227 Benefits Fair: NOVEMBER 20TH & 21ST 8:30 AM – 3:30PM Kentucky Building – KY Room WEDNESDAY, NOVEMBER 6TH • 9:00 AM – WAB Room 227 • 2:00 PM – DSU Annex A210 THURSDAY, NOVEMBER 7TH • 8:00 AM – South Campus 226 • 10:30 AM – DSU Auditorium (DFM)
- 3. HIGHLIGHTS OF THE 2014 PLAN YEAR ANNUAL OPEN ENROLLMENT • There will be NO rate increases in 2014 for the Dental, Life*, and Disability* plans. – *NOTE: Individuals moving to a new age bracket will see an increase in life and disability premiums, based on the age-banded rate structure. • There will be modest Health Plan increases in employee premiums and minor benefit plan changes in 2014. – The University’s Health Plan contribution will increase from $471 to $525 per month, which helped alleviate more significant benefit plan reductions and employee premium increases • Employee Assistance Program – Anthem EAP will replace Compsych/Guidance Resources as WKU’s Employee Assistance Program provider.
- 4. BENEFIT ENHANCEMENT FOR 2014 Lincoln Financial will replace Sun Life as WKU’s Life and Disability provider in 2014. • This carrier change comes with many advantages for employees who wish to enroll for the first time or increase the optional employee or spouse life coverage or elect short term disability. • During open enrollment, Lincoln Financial will offer a one-time special guarantee issue period which provides a unique opportunity for employees to enroll in optional employee life, spouse life, and short term disability without completing a statement of health subject to approval.
- 5. BENEFIT ENHANCEMENT FOR 2014 • The University provided basic life insurance policy will increase from $30,000 to $35,000 • The maximum spouse life coverage amount will increase from $80,000 to $250,000. • Because of the carrier change, all employees will be asked to update life insurance beneficiary information during open enrollment this year. DON’T MISS THIS UNIQUE OPPORTUNITY!!! PROTECT YOU AND YOUR FAMILY FROM THE POTENTIAL FOR INCOME LOSS AND OTHER FINANCIAL HARDSHIPS SHOULD THEY ARISE!
- 6. WKU HEALTH PLAN What’s Changing for 2014?
- 7. 2014 HEALTH PLAN CHANGES While Health Plan benefits and premiums have remained unchanged over the past 3 years (with the exception of several benefit enhancements), there will be some changes in 2014: • Modest Increases in Employee Premiums • The Economy Plan will be the FREE Option for Employee Only Coverage in 2014 • A Specialist Office Visit Copay will be added to the Health Plan • A $50 Annual Rx Deductible will be added and applicable to Tier 2 & Tier 3 Prescriptions
- 8. Cost WKU Monthly Contribution Employee Monthly Premiums $600 $965 $775 $1155 $965 $1155 $525 $525 $525 $525 $1050 (2x$525) $1050 (2x$525) $75 $440 $250 $630 $0 $105 2014 HEALTH PLAN MONTHLY RATES High Plan EE Only EE + Spouse EE + Child(ren) Family Cross Ref Couple Cross Ref Family Standard Plan EE Only EE + Spouse EE + Child(ren) Family Cross Ref Family $550 $830 $685 $975 $975 $525 $525 $525 $525 $1050 (2x$525) $25 $305 $160 $450 $0 Economy Plan EE Only EE + Spouse EE + Child(ren) Family $525 $750 $625 $875 $525 $525 $525 $525 $0 $225 $100 $350 • The University’s Health Plan contribution will increase from $471 per month to $525 per month • The increase in the University’s contribution helped alleviate more significant benefit plan reductions and employee premium increases
- 9. HEALTH PLAN DESIGN CHANGES FOR 2014 Addition of a Specialist Office Visit Copay: High Standard Economy Primary Care Office Visit Copay $25 $35 $35 Specialist Office Visit Copay $40 $50 $50 • The average cost to see a Specialist is nearly double that of a Primary Care Physician • Primary Care will include the following: – General Practitioners, Family Practice, Internal Medicine, OB/GYN, Pediatricians and Geriatrics • All other types of Office Visits will fall under Specialists and be subject to the new copay level
- 10. PRESCRIPTION BENEFIT CHANGES FOR 2014 Addition of a $50 Annual Rx Deductible for Tier 2 & Tier 3 Drugs: • No deductible for Generics! – Tier 2 and Tier 3 Drugs cost on average more than 6 times the cost of Tier 1 Generic Drugs! • Tier 2 & Tier 3 drugs made up over High Tier 1 Generic Tier 2 Brand Preferred 70% of our total Rx costs in 2013 • Use Generics whenever possible! Tier 3 Brand NonPreferred Standard Economy $10 $15 $15 $25 $30 $35 *after $50 annual deductible *after $50 annual deductible *after $50 annual deductible $35 $45 $45 *after $50 annual deductible *after $50 annual deductible *after $50 annual deductible
- 11. HEALTH PLAN COMPARISON CHART Benefit Highlight (In-Network) HIGH STANDARD ECONOMY Deductible • Single • Family $400 $800 $750 $1500 $1000 $2000 Out of Pocket Max • Single • Family $1500 $3000 $2000 $4000 $4000 $8000 Coinsurance (after annual deductible) 10% 20% 30% Preventive Care Services $0 $0 $0 Office Visit Copay $25 $35 $35 Specialist Visit Copay $40 $50 $50 Rx Copay • Generic $10 • Brand Preferred (after $50 annual deductible) $25 • Brand Non Preferred (after $50 annual deductible) $35 $15 $30 $45 $15 $35 $45
- 12. VISION PLAN No changes to the vision coverage for the 2014 Plan Year Vision coverage is automatically included with participation in the WKU Health Plan Benefit In Network Non-Network (Reimbursement) Exam (every 12 months) $10 copay Up to $42 Prescription lenses and frames *lenses every 12 months *frames every 24 months $20 copay Up to $40 - $125 Varies by lens type Prescription contact lenses *once every 12 months Elective – up to $130 Non-elective - $20 copay up to $250 Up to $210
- 13. EMPLOYEE WELLNESS PROGRAM • We are excited to launch the second year of the Employee Wellness Program starting in January 2014 • We encourage you to participate in the health improvement activities to improve your health and wellbeing and earn incentive rewards • Additional information is available at https://wku.livehealthier.com
- 14. FLEXIBLE SPENDING ACCOUNTS Medical and Dependent Care FSA’s
- 15. Example of the Tax Savings applicable to Flexible Spending Accounts Without an FSA With an FSA Annual Gross Salary $30,000 $30,000 Annual Healthcare Expenses $1,000 $1,000 Annual Daycare Expenses $2,000 $2,000 Contributions to an FSA $0 $3,000 Taxable Income $30,000 $27,000 Estimated Taxes $10,695 $9,626 Net Tax Savings by Using an FSA $0 $1,069 IMPORTANT INFORMATION!! Voluntary Medical and Dependent Care FSA’s REQUIRE annual reenrollment. You MUST take action during open enrollment to re-enroll!! Employees who waive the WKU Health Plan and receive the $150/mo. are NOT required to re-enroll annually. It will automatically continue unless you elect health coverage. All employees enrolled in Flexible Spending will receive a new FSA Card for the 2014 Plan Year.
- 16. FLEXIBLE SPENDING ACCOUNTS Waiver Funds (employees who waive WKU Health Plan) $150/month Medical Flexible Spending Account Up to $2,500/year Dependent Care Flexible Spending Account Up to $5,000/year
- 17. DENTAL PLAN
- 18. DENTAL PLAN COMPARISON CHART CORE PPO PREMIER Deductible $50 Single/$150 Family $50 Single/$150 Family Annual Max $1000 $1000 Diagnostic/Preventive Services 100% - no deductible 100% - no deductible Minor Services 50% - after deductible 80% - after deductible Major Services Not covered 50% - after deductible Orthodontia Not covered 50% up to $1000 lifetime max for dependents up to age 19
- 19. Cost WKU Monthly Contribution 2014 DENTAL PLAN MONTHLY RATES Employee Monthly Premiums • CORE PPO PLAN There will be no changes in dental plan EE Only $13.06 $13.06 $0 EE + Spouse $26.06 $13.06 $13.00 rates or benefits for EE + Child(ren) $24.94 $13.06 $11.88 2014* Family $40.86 $13.06 $27.80 PREMIER PLAN *Some employees may notice a $0.01 increase or decrease in the EE Only $25.32 $13.06 $12.26 monthly premium as a result of EE + Spouse $49.66 $13.06 $36.60 some rounding changes in a few EE + Child(ren) $58.90 $13.06 $45.84 Family $92.36 $13.06 $79.30 coverage levels
- 20. LIFE AND DISABILITY INSURANCE Basic, Optional, Spouse, & Dependent Life Short-term & Long-term Disability
- 21. LINCOLN FINANCIAL - NEW LIFE & DISABILITY INSURANCE CARRIER • During open enrollment, Lincoln Financial will offer a one-time special guarantee issue period which provides a unique opportunity for employees to enroll in optional employee life, spouse life, and short-term disability without completing a statement of health and subject to approval. • Employee Optional Life Guarantee Issue up to $250,000 • Spouse Optional Life Guarantee Issue up to $30,000
- 22. AGE Employee Spouse 00-29 $0.090 $0.110 30-34 $0.114 $0.134 35-39 $0.135 $0.155 40-44 $0.151 $0.171 45-49 $0.258 $0.278 50-54 $0.389 $0.409 55-59 $0.619 $0.639 60-64 $1.013 $1.033 65-69 $1.706 $1.726 70-74 $2.723 N/A Dependent Child(ren) $5,000 Policy $0.82/month Dependent Child(ren) $10,000 Policy $1.63/month OPTIONAL EMPLOYEE, SPOUSE, & DEPENDENT LIFE INSURANCE MONTHLY RATES To compute your monthly optional life rate: _______________________ x ____________________ / 1,000 (age band rate per thousand) (desired amount of coverage) Note: Premiums are based on age as of January 1, 2014. Premiums will automatically increase on January 1st of each subsequent year if you or a spouse progress to a new age band
- 23. SHORT-TERM DISABILITY WKU Employee have the opportunity to purchase a short-term disability policy through Lincoln Financial. Short-term disability provides a weekly benefit of 60% of salary up to a maximum of $1,250 per week for up to 13 weeks. Short-term disability is designed to protect employees from income loss associated with absence from work due to injury, sickness or disease. Important: Short-term disability will be offered under a special guarantee issue period during open enrollment this year!! *No changes to the University provided LongTerm Disability To compute your short –term disability monthly premium: Salary / 52 weeks x 60% x Age Band Rate Age Rate 00-25 $.089 25-29 $.090 30-34 $.069 35-39 $.069 40-44 $.066 45-49 $.070 50-54 $.081 55-59 $.104 60-64 $.122 65-69 $.137 70+ $.142
- 24. IMPORTANT INFORMATION ABOUT ANNUAL OPEN ENROLLMENT • You may enroll or make changes during the Open Enrollment election period between November 15th – 29th • The choices you make during the Open Enrollment period will be effective for the plan year beginning January 1, 2014 through December 31, 2014 • You will not be able to drop or add coverage until the next Open Enrollment period in November 2014 for the 2015 Plan Year, unless you have a change in family status or experience a “qualifying event”
- 25. MAKING CHANGES THROUGHOUT THE YEAR: QUALIFYING EVENTS • If you experience a qualifying event during the 2014 plan year, you can make mid-year election changes to your benefits • You must notify the WKU Benefits Team within 31 days of the qualifying event • Examples of qualifying events include: – Birth or adoption – Marriage or Divorce – Employment Status (dependent loses/gains other coverage) – Dependent no longer meets eligibility criteria – Spouse’s annual enrollment period or change in benefit offerings
- 26. OPEN ENROLLMENT BEGINS NOVEMBER 15TH! NO MORE PAPER!! • Additional information will be shared via email and the HR Benefits website • A new communication and enrollment portal will be introduced in the coming weeks All open enrollment information will be communicated electronically this year • Watch for future communication from WKU Benefits All open enrollment changes will be made in the new enrollment system