2014 Employee Benefits Open Enrollment. October 14 November 1. Great News for 2014!. New plans More choices 0% increase for medical, dental and vision Opportunity to decrease medical premium expenses Personalized enrollment help for everyone. Mountain Top View. - PowerPoint PPT Presentation
2014 Employee Benefits Open EnrollmentOctober 14 November 111Great News for 2014!New plansMore choices0% increase for medical, dental and visionOpportunity to decrease medical premium expenses Personalized enrollment help for everyone
22Mountain Top ViewHeading into our third year of our high deductible health plans, we can unequivocally say that our three fold strategy is working!
Goal #1: To beat down health care trend to stabilize premium costs for the company and for our employees even in the midst of healthcare reformHealthcare trend increases for high deductible health plans averages 6 8%, PPO increases range 8 12% and HMO increases range from 12 15%
Salient Results: We have averaged a 1.7% increase per year over the three years even when healthcare reform was adding costs into our plans0% increase at 1st anniversary5% increase at 2nd anniversary0% increase at 3rd anniversary
33Mountain Top View (continued)Goal #2: Provide an opportunity for our employees to begin saving for future retiree health expenses using Health Savings Accounts (HSAs)Salients contribution to employees HSA accounts is on the high side of industry averages Average is $500/$1,000Salient contributes $750/$1,500
Salient Results:Employees account balances have steadily increasedPEACE OF MIND accumulated savings can be built up to offset any potential out-of-pocket expenses in a given yearSAVINGS FOR THE FUTURE with the increased account balances, employees are putting money away that can be used for future expenses (retiree healthcare or COBRA)
44Mountain Top View (continued)Goal #3: Provide high-quality insurance plans which offer choice along with both short- and long-term protectionsSalient Results:Salients coinsurance after the deductible is met and underlying insurance plan is on the high side of industry averages.Industry average is 80%/60% ; Salients plan is 90%70%Robust insurance protections Adding third medical plan for 2014 to offer additional choice, lower premiums and provide simplicityLowest premiums for employees! Salient is paying an additional 10% towards premiums for the Value PlanOnce deductible is met, eligible expenses are paid at 100% for remainder of yearAs HSA balances have grown, employees have opportunity to afford higher deductible
55Ground-level View Its all about personal choiceAdding third medical planRaised deductible and out-of-pocket in Standard Plan with a resulting 7% drop in premium costsAdding additional voluntary insurance plans to help protect against deductible expensesEngage me!New wellness program with easy to use toolsImproved pricing tools on Cigna site to predict healthcare costsOpen Enrollment road showConcierge benefit enrollment experience66Whats Not Changing in 2014?Our commitment to your health and well beingOur continued belief in the value of consumerismProviding you a full complement of products and servicesPremiums for medical, dental, visionBenefit partners for medical, dental, vision, life, and disability77Whats New in 2014?New BenefitDescriptionAddition of new medical plan(Once deductible is met, all covered expenses paid at 100%)Value PlanIn Network Deductible & OOP -- $3,750/$7,500Out of Network Deductible & OOP -- $7,500/$15,000Lowest premiums and highest company contributionAccidental Death & Dismemberment InsuranceInsurance that pays in the event of an accidental death or loss of limb, eyesight, etc.24-Hour Accident InsuranceServes as supplement to medical plan and pays regardless of other coverage; Helps minimize out-of-pocket expenses due to accidents (dislocations, fractures, burns, concussions, etc.)Critical Illness InsuranceProtects against serious health problems such as stroke, heart attack or cancer; Benefit pays a lump sum upon first diagnosis of a covered condition88Whats Changing in 2014?Current BenefitNew BenefitHigh Premium/Low DeductibleLow Premium/High DeductibleName Change to Premium PlanName Change to Standard PlanLow Premium/High DeductibleIn Network Deductible -- $2,000/$4,000Out of Network Deductible -- $4,000/$8,000In Network Out of Pocket -- $4,000/$8,000Out of Network Out of Pocket -- $8,000/$16,000Standard PlanIn Network Deductible -- $2,500/$5,000Out of Network Deductible -- $5,000/$10,000In Network Out of Pocket -- $5,000/$10,000Out of Network Out of Pocket -- $10,000/$20,000Premiums decreased by 7%Short-term Disability PlanSame benefit but moving to new set of rates based on ageWageWorks for FSA/HRA/Transit/COBRANew Partner Flores & AssociatesEnhanced servicesChase Bank for HSA AccountsNew Partner HSA Bank for HSA AccountsTransfer information at OE appointmentsHSA Company Contributions$750/$1,500 per yearExtra $187.50 or $375 for wellness awardHSA Company Contributions$562.50/$1,125 per yearExtra $187.50 or $375 for wellness awardLimeade Wellness ProgramMotivateMe! Wellness Program 992014 Contribution LimitsContribution TypeAnnual Limit for 2014401(k)$17,500401(k) Age 50+$17,500 + $5,500 Catch-upHealthcare Flexible Spending Account*$2,500Limited Purpose Flexible Spending Account*$2,500Dependent Care Flexible Spending Account*$5,000Health Savings Account*: Participation in Wellness ProgramEmployee Only: $2,550Family (2 or more): $5,050Health Savings Account*:Non-Participation in Wellness ProgramEmployee Only: $2,737.50Family (2 or more): $5,425.00*You must make your contribution election through a Benefit Educator if you want to contribute to any of these accounts.10102014 Benefit PartnersBenefitPartner401(k)Transamerica Retirement ServicesMedicalCigna HealthcarePharmacyExpress ScriptsDentalUnited ConcordiaVisionVision Service PlanLife, Disability, Supp Life and Supp AD&DMetLifeHealth Reimbursement Accounts, Flexible Spending Accounts, Commuter and COBRAFlores & AssociatesHealth Savings AccountsHSA BankAccident and Critical Care InsuranceUNUM1111Health Care ReformHow it Impacts All of UsThe Patient Protection and Affordable Care Act requires Salient to:Cap healthcare FSA contributions at $2,500Display the value of your health insurance benefits on your W-2Provide a Summary of Benefits and Coverage (SBC) prior to open enrollmentProvide the Health Insurance Marketplace Coverage Options notice by October 1New fees added into premium rates1212Our Medical PlanDares to Be DifferentOptimizes both employer and employee costs today and into the futureMedical cost escalationTax optimizationRetiree health savings
13A Plan For Today and Tomorrow1414A Great Plan In SicknessAbsolute out-of-pocket maximum per yearDrugs and medical expenses combinedHealth Savings Account to offset deductible expenseBest in class medical and Rx providerFreedom to choose network or non-network providers
1515And a Great Plan In HealthSuperb insurance coverage at affordable premium rates100% preventive care benefit for whole familyAbsolute yearly out-of-pocket maximum costsEmployer provided Health Savings Account that is always yours now and into the future.
1616Value Plan DetailsOne and DoneDeductible and Out of Pocket are the exact sameAfter satisfying deductible, expenses are paid at 100% for rest of yearHSA Wellness Contribution for employee + spouse/partnerLowest premium planRates more highly subsidized by Salient (81% for employee only and 69% for employee + other)Same excellent medical and Rx coverage
17The Tax Man ComethImportant tax rules governing all pre-tax accountsUnderstand the rules and apply them to your best advantageThere are many options spend time during your enrollment session discussing how to optimize your tax savings.
1818Health Savings AccountsSalient will contributeUp to $750 for employeeUp to $1,500 for employee + 1 or moreWellness contribution only for the Value PlanOpportunity for you to save taxes while setting aside money to pay for deductible and out of pocket expensesMust not be covered under any other health insurance plan (spouse/partner, VA, Tricare, COBRA, retiree plan, Medicare, etc.)Triple Tax ProtectedPortable always yoursCan be used for medical, Rx, dental and vision expensesMay be combined with a Limited Purpose FSA for additional tax savings1919Benefit Accounts All of these accounts are subject to IRS rules and regulations. This chart is intended for summary purposes only.20
Health Savings Account (HSA)Health Reimbursement Account (HRA)Eligibility: Must be enrolled in CIGNA domestic plan and must not have any other insurance (TRICARE, VA, Spousal Plan, Retiree, etc.)Eligibility: Must be enrolled in CIGNA domestic plan. May have additional health coverage outside of Salient.Salient contributes to Premium and Standard Plans:$750/$1,500 if wellness activities completed$562.50/$1,125 if wellness activities are not completedEmployee May Contribute:$2,550/$5,050 if wellness activities completed$2,737.50/$5,425 if wellness activities not completedSalient contributes to Premium & Standard Plans:$750/$1,500 if wellness activities completed$562.50/$1,125 if wellness activities are not completedSalient contributes to Value Plan:$187.50/$375 if wellness activities completedEmployee May Contribute:$3,112.50/$6,175.00 if wellness activities completed$3,300.00/6,550.00 if wellness activities not completedSalient contributes to Value Plan:$187.50/$375 if wellness activities completed
IRS Pretax Limit for 2014 for all contributions:$3,300 Employee Only$6,550 Employee + One or MoreLimited to Employer Contributions OnlyBalance rolls from year to year and portable upon leaving.Balance rolls from year to year. Balance upon termination from plan is forfeited to Salient.Can be used for medical, Rx, dental or vision expensesCan be used for medical, Rx, dental or vision expenses
20Which Plans Work TogetherSalient Medical Plan ElectionEligible for HSA or HRAEligible for General FSA or Limited FSAPremium Plan (high premium/low deductible)HSALimited FSAStandard Plan (low premium/high Deductible)HSALimited FSA
Value Plan (lower premium/higher deductibleHSALimited FSA
Decline Salient Medical InsuranceNeitherGeneral FSAAny Salient Medical Plan and Medical Plan with another provider (TRICARE, spouses plan)HRAGeneral FSA2121Pharmacy: Express ScriptsPrescriptions are part of the high deductible planPreventive drugs are not subject to the deductibleAll other drugs are subject to deductible and out of pocket limitsVery large national network of pharmaciesOnce deductible is met (e.g. $1,500 for employee only or $3,000 for family) employee pays 20% of cost up to max. per below
22Retail PrescriptionMail Order PrescriptionGenericMax of $30GenericMax of $75FormularyMax of $60FormularyMax of $150Non-FormularyMax of $100Non-FormularyMax of $25022TRICARE SupplementIf you are enrolled in DEERS and TRICARE, you may elect to participate in the TRICARE Supplement on a pre-tax basisSupplement provides coverage for out-of-pocket expenses associated with TRICARE Prime or Standard or Extra coverageFor more information please visit: http://www.asicorporation.com/faq_corporate.htmlYou may supplement TRICARE through Salients CIGNA high deductible health planNo HSA, but can have a HRA (Health Reimbursement Account) with a company contributionMay elect to have a FSA to pay for additional medical, dental or vision expenses2323UCCI PPO Dental PlanStrong network across the U.S.Same Coverage for In- or Out-of-Network ProviderPreventive Services- covered at 100% (includes cleanings, exams, x-rays)Basic Services - covered at 80% Major Services - covered at 50%Orthodontia - covered at 50%, lifetime maximum benefit of $2000.00; coverage available for adults and children
2424UCCI PPO Dental PlanPlan Year Deductible - Individual $50- Family $150Annual Maximum - $2000 per memberDental deductible plan year currently runs April 1 through March 312014 will be a short plan (April 1 through December 31)Beginning 2015, the dental deductible will run calendar year (January 1 through December 31) 25Vision Service Plan (VSP)Employee paid vision plan, offered through VSPLargest vision network in the nationBenefits from a VSP Participating Provider:Routine Vision Exams: $10 copay, every 12 monthsLenses: $25 copay, every 12 monthsFrames: $25 copay, every 24 monthsContact Lens (in lieu of frames and spectacle lenses): No copay, every 12 months maximum benefit $130.00 annuallyReimbursable benefits vary for non-participating providers Note: VSP guarantees service from VSP doctors only. When you see a VSP provider, youll get the most out of your benefit and have a lower out-of-pocket cost.
Life and Disability Plans
Name of PlanBenefit DetailsBasic Life1 x base salary up to $100k; company paid core benefitBasic AD&D1 x base salary up to $100k; company paid core benefitVoluntary LifeEE - Up to 5 x base salary to maximum of $500,000; $160k guarantee issue at hireSP - Benefit available up to $250,000; guarantee issue $25,000CH - Maximum guarantee issue $10,000Voluntary AD&DEE Lesser of 10x annual salary or $500,000EE + SP 50% of Employee amountEE + SP + CH Spouse 40% of employee amount, each child, 10% of employee amountEE + Child(ren) each child 15% of employee amountVoluntary Short-term Disability60% of base salary capped at $2,500 weekly maximum benefitLong-term Disability40% of base salary capped at $10,000 monthly maximum; company paid core benefitVoluntary Buy-up to LTDAdditional 20% on top of company-paid 40%; total of 60% of base salary capped at $10,000 monthly maximum27
27Voluntary STDCurrent STD PlanSalients rates are coming off a three year rate guarantee based on a very low average age and very favorable experienceSalient STD premium was a single premium for everyoneATS employees remained on age-banded premium ratesHigh utilization rates for both groups2014 STD PlanSTD Plan moving to age banded rates for everyoneKeeping same 7 day waiting periodRates are increasing for everyoneLess impact to ATS employees28
28Accident InsuranceProtects against a wide range of accidents including dislocations, fractures, burns, concussions etc.Coverage for employee, spouse and/or dependent(s)Scheduled lump sum payout based on type of accidentPays regardless of other insuranceMinimizes high deductible exposure due to accidentsNo health questionsFully portable
29Critical Care InsuranceProtects against serious health problems such as stroke, heart attack or cancerLump sum benefit paid upon first diagnosis of a covered conditionCoverage available for employee, spouse or dependent(s)Fully portable30
31Building Your Retirement AccountThe convenience and automated features offered by Salients plan make it easier for you to save -- you may hardly miss the additional savings going toward your futureBy saving your own money, you build a larger retirement account, you receive the companys matching contribution and you save Federal, State and FICA taxes
32401(k)33EligibilityMust be 21 or older and meet the 30 day waiting periodParticipation begins the first of the month following the 30-day waiting periodEnroll at sfs.trsretire.com or 1-800-755-5801Automatic EnrollmentAll new employees automatically enrolled at 3% contribution rate after 90 days of employment. Beginning January 1, 2014, contributions will auto increases each November 1 by 1% until 6% is reachedYou may opt out of auto enrollment at sfs.trsretire.com Maximum Contribution$17,500 Employees who reach age 50 before the end of the calendar year may contribute an additional $5,500 Max contribution of $23,000Elective DeferralYou may contribution 0% - 100% of pre-tax payroll deductions up to annual limitEmployer Match50% of up to 6% of your eligible contributionsPartnerTransamerica Retirement Services33Flores Qualified Transportation Expense AccountParticipation via pre-tax payroll deductions reduce your taxable income nowThere is no annual enrollment period, so you can enroll anytime.Change your contribution to your transit and/or parking account(s) on a monthly basis.Unlike other pre-tax programs, there is no need to worry about spending your account balance by the end of the year. Any leftover dollars are automatically rolled over into the next plan year for your use. No Forfeitures!Qualified Commuting Expenses tax free (subject to 2014 approval)Transit and vanpool expenses up to $245 per month ($2,940 per year) andQualified parking expenses up to $245 per month ($2,940 per year)
34CIGNA Employee Assistance ProgramProvided at no cost to youVariety of services including:Personal relationship management;Financial planning;Career managementLegal consultationChild/Eldercare referralsStress ManagementCall 1-877-622-4327 or log into www.cignabehavioral.com Employer ID: Salient
For 2014 Salient has partnered with Cignas Motivate Me! Program to provide an interactive, exciting Wellness Program.
Salient is committed to providing comprehensive, affordable benefits and helping sustain and improve the overall health and well-being or you and your family. Salient Wellness is designed to fit into your everyday schedule and lifestyle.
More information coming soon!36Motivano Shopping DiscountsMotivano offers Salient employees access to exclusive discounts from thousands of top brands.Apparel (e.g. Aeropostale, Banana Republic, Eddie Bauer, DSW, etc.)Beauty & Fragrance (e.g. Sephora, Elizabeth Arden, Walgreens, etc.)Computers & Electronics (e.g. Dell, Apple, TurboTax, Sony, etc.)Health & Wellness (e.g. Camping World, Golds Gym, GNC, WeightWatchers, etc.)Automotive (e.g. Advance Auto Parts, Avis Rental Cars, Liberty Mutual, etc.)Home, Garden, Pets (e.g. Pet Insurance, Home Insurance, Brookstone, Ace Hardware, etc.)
Save on everyday purchases: https://intranet.salientfed.com/Main/AppPages/Home.aspx Click on Salient Employee Discounts
37Employee Leisure Discount ProgramsEmployees can take advantage of discounts and special offers to popular theme parks and entertainment attractions nationwide. Discounts are available for:Walt Disney World ResortUniversal StudiosSeaWorldSix FlagsCirque du Soleil - Las Vegas and New York City performances Movie Tickets Company Code: Salient
38Open Enrollment BasicsOpen Enrollment begins October 14 and ends of November 1Only time during the year you can make changes unless you have an IRS qualifying event
All employees must enroll either through the call center or through a benefit educator2013 benefit elections will not carry forward to 2014Current benefit elections are available via NuView https://hr.salientfed.comForms are available at www.salientfed.com/benefits-2 3939What Am I Required to Do?All employees must make their 2014 elections through a benefit educatorInsurance elections and spending account benefits from 2013 will not rollover into 2014You must have an IRS qualifying event to make benefit changes after open enrollment If hired on or after October 14, 2013 you will have the opportunity to enroll for the 2013 and 2014 plan year 4040How Do I Enroll in Benefits?Enroll by phone through a benefit educatorEnroll with an on-site benefit educator (at selected sites)Schedule your appointment at:www.enrollappointments.com/salient
4141Were Here to Help YouInsurance Provider Support:Detailed questions regarding type of coverage or level of coverage may be best directed to the insurance provider Refer to Insurer Contact information chart on slide 43.
Salient Human Resources Support:Questions on how to enroll Open Enrollment Hotline Number: 800-823-7290 7:00 A.M. EDT to 7:00 P.M. PDTE-mail: firstname.lastname@example.org
42Vendor Contact Information43Insurance ProviderCustomer ServiceWeb AddressMedical CIGNA Healthcare800-401-4041www.mycigna.com Current Cigna Participantswww.mycignaplans.com New 2014 Cigna Participants Rx Express Scripts800-711-0917www.express-scripts.com
Dental United Concordia (UCCI)800-332-0366www.ucci.com
Tricare Supplement ASI Corporation (administrator)800-950-0105www.asicorptricaresupp.com
FSA Accounts Flores & Associates1-800-532-3327www.flores247.com 401(k) Transamerica Retirement Solutions800-755-5801sfs.trsretire.com