University of Wisconsin System Annual Benefit Enrollment (ABE) Period

1. University of Wisconsin SystemAnnual Benefit Enrollment (ABE) Period October 6 – 31, 2014 http://www.uwsa.edu/abe

2. YOUR NEEDS. YOUR BENEFITS. The Time is Now. Evaluate, Enroll, Make Changes... It’s the Annual Benefit Enrollment (ABE) period for 2015! See the ABE brochure and website for details. Brochure: www.uwsa.edu/abe/brochure.pdf Website: www.uwsa.edu/abe

3. Benefit Changes Allowed during ABE • All changes made during this period are effective January 1, 2015. • If you do nothing, your existing benefits, with the exception of your FSA, will continue in 2015.

4. State Group Health Options • For State Group Health, you may take the following actions during ABE: • Enroll • Change health plans • Add or remove eligible dependents • Cancel coverage for 2015 • As always, confirm your current medical and dental providers will still be available in 2015.

5. Health Insurance Benefit Changes • There are no changes to the benefits offered by the current State Group Health plans for 2015. • $0 Deductible • 10% Coinsurance on covered services up to out-of-pocket limit ($500/person-$1,000/family) • Prescription co-pays - Level 1: $5; Level 2: $15; Level 3: $35; Level 4: $50 • Uniform Dental Benefits • Wellness Incentive • New for 2015 – All health plans will offer the option to enroll a High Deductible Health Plan (HDHP) and a Health Savings Account (HSA).

6. HDHP Eligibility • Eligible for HDHP if covered by the Wisconsin Retirement System (WRS) and: • You are NOT enrolled in Medicare; • You are NOT covered by another health care plan that is not an HDHP including TRICARE or TRICARE for Life (including spouse’s/ domestic partner’s plans); • Are not the dependent of another person for tax purposes. • Employees eligible for the Graduate Assistant/Short-Term Academic benefits package are NOT eligible for the HDHP.

7. HDHP Plan Features • Lower premium → higher out-of-pocket costs • Annual deductible must be met before health plan starts to pay benefits: • $1,500 for Single Coverage • $3,000 for Family Coverage • After deductible met, benefits payable the same as the Coinsurance Uniform Benefits health plans (current health plans) – 10% coinsurance on most covered medical services up to your annual out-of-pocket maximum. • Some preventive services and prescriptions immediately covered (not subject to deductible). • See https://www.healthcare.gov/what-are-my-preventive-care-benefits/ for list of preventive medical services • See http://www.etf.wi.gov/members/IYC2015/IYC_State_hdhp-hsa.htmlfor a list of preventive prescriptions • You will pay full cost of all non-preventive medical services, prescription costs and dental expenses until annual deductible is met.

8. HDHP vs. Coinsurance Uniform Benefits Overview • Once you meet the annual deductible under the HDHP, you will pay 10% coinsurance on covered medical services, applicable coinsurance on dental benefits and prescription copays up to the annual out-of-pocket limit (OOPL). The annual deductible is counted towards the annual OOPL. *Amounts could be higher because Level 3 & 4 prescriptions do not apply to this out-of-pocket limit. +Total may be higher if expenses are for charges that do not apply to the out-of-pocket limit. Examples include hearing aids (if over age 18), ER copays.

9. 2015 Health Insurance Premiums Premiums listed do not apply to those who are required to pay the less than half-time rates or the total premium.

10. HDHP vs. Coinsurance Uniform Benefits Plan Example Employee has $10,000 surgery on January 1st– these are the first charges of the year.

11. HDHP vs. Coinsurance Uniform Benefits Plan Example *Once annual HDHP deductible is met, prescriptions are covered at the Coinsurance Uniform Benefits plan cost.

12. HDHP vs. Coinsurance Uniform Benefits Plan Plan Example • All health plans, except Standard Plan and SMP, offer Uniform Dental Benefits. • Uniform Dental includes benefits for diagnostic, preventive, restorative and periodontal maintenance services, up to annual max of $1000. Lifetime benefit maximum of $1,500 for orthodontia for children, paid at 50%. Subject to the annual HDHP deductible. • This example assumes that the annual HDHP deductible has not been met and services received in-network. *No cost for pediatric preventive dental

13. Health Insurance Plan Changes

14. Health Insurance Plan Changes • Some health plans are expanding their networks into new counties. See the full list under Important Changes on the ETF website at http://etf.wi.gov/members/IYC2015/15state-important-changes.pdf or on pages 2 – 5 of the It’s Your Choice: Decision Guide.

15. Let’s Talk About Pre-Tax Savings TASC will be the new program administrator in 2015 for the following accounts: • *New* – Health Savings Account (HSA) • Must be enrolled in HDHP • Flexible Spending Accounts (FSA) offered under the Employee Reimbursement Account (ERA) program • Flexible Spending Accounts – Health Care & Dependent Day Care • *New* – Limited Purpose Flexible Spending Account • Must be enrolled in HDHP

16. Health Savings Account (HSA) • An HSA is a pre-tax savings account established by an individual to pay for health care expenses such as costs incurred towards the deductible, dental, vision and prescription drugs. • To enroll in an HSA, you must be covered by a federally qualified HDHP. To enroll in the State HSA, you must be enrolled in the State HDHP. • HSAs are owned by the individual, balances roll over from year to year, and the funds are portable, meaning you keep them if you leave the HDHP plan or state service.

17. HSA Plan Features • The HSA is set up as a savings account with a designated bank and earns interest. • You can also choose to invest a portion of your HSA balance. More information is available at www.tasconline.com. • You may change your HSA contribution amount at any time.

18. HSA Plan Features • Your employer will contribute to your account in 2015. You can also contribute pre-tax dollars up to the federal contribution limit. • You may use the money once it is deposited into your account, including for eligible services that were incurred after the account is opened but before the money is deposited.

19. Health Savings Account (HSA) • *If you are 55-65 years of age, you may contribute an additional $1,000 “catch-up” per year to your HSA. • If enrolled in the HSA on January 1st, the entire employer contribution is deposited to your account annually on the first paycheck payable in the calendar year. • The HSA contribution is pro-rated if the HSA is opened after January 1. • Anyone may contribute to your HSA on a post-tax basis. • Craftsworkers and rehired annuitants are not eligible to receive the annual employer contribution to an HSA.

20. HDHP/HSA Who are most likely to be interested in enrolling for the HDHP/HSA? • Savers • Spenders • Risk Takers

21. HDHP/HSA • Savers – Employees who do not expect to incur medical costs and/or can afford to pay the deductible out-of-pocket. They may plan to use the HSA for long-term savings, such as: • Additional retirement savings vehicle • Maintaining a tax shelter • Building a health care nest egg

22. HDHP/HSA • Spenders – Employees who will likely use the money in their HSA to cover the cost of expenses that are applied to the deductible. • If employees take the amount they are saving due to the lower premium cost and contribute that amount to their HSA, the HSA provides a way to budget for health, prescription and dental services, but keep in mind that: • 76% of Americans live paycheck to paycheck • 26% of a low-earning family’s income may be needed to cover the average HDHP out-of-pocket limit • 55% of low-income workers experience difficulty paying medical bills or have medical debt.

23. HDHP/HSA • Risk Takers – Typically have low medical costs. Younger, healthier population. They are betting that the annual savings through lower premiums and the employer contribution to the HSA will be greater than their medical, prescription and dental expenses.

24. HDHP/HSA Cost Comparison Does not reflect premium costs for craftsworkers, graduate assistant/short-term academic staff, less than half-time employees, rehired annuitants.

25. Flexible Spending Accounts (FSA) • The ERA program offers three Flexible Spending Accounts (FSA) • Health Care FSA • Dependent Day Care FSA • New for 2015: Limited Purpose FSA • Eligibility - all benefit-eligible employees except LTEs, Fellows, Scholars, Graduate Intern/Trainees, or Post-Doctoral Fellow/Trainees. • You decide how much to set aside and that amount is deducted from each paycheck before your Federal, State, and FICA taxes are calculated so you save money on taxes.

26. FSA Plan Descriptions

27. Limited Purpose FSA • Limited Purpose FSA (LPFSA) – If you enroll for an HDHP for 2015 with an HSA and also want a medical care FSA, you may not enroll in the general FSA, but you can have a limited-purpose medical FSA. • The LPFSA only allows you to pay for qualified vision, dental and post-deductible expenses. IRS regulations prohibit you from having a general-purpose Health Care FSA and an HSA at the same time because they have almost identical qualified medical expenses. • May be good option for employees with high dental, orthodontic or vision expenses, or those who don’t want to spend the money in their HSA because they are choosing to use it to save for health care expenses in retirement. • It is permissible to still have a Dependent Day Care FSA when you have an HSA.

28. Enrollment Tip • If you are enrolling in an HDHP for 2015, it is recommended that you first make that election. You will enroll in the HDHP through your institution, either via eBenefits, if available, or with a paper application. • After enrolling the HDHP, you must enroll for a Health Savings Account (HSA) online through TASC. Enrollment in the HSA is required prior to the effective date of the HDHP. • After enrolling in the HDHP, you should enroll in the Limited Purpose FSA for health care if you want to participate in that program. • Enrollment in the Dependent Day Care FSA is not affected by your health insurance choice. Enrollment in the Dependent Day Care FSA during ABE is done online through TASC. Enrollment in the FSA/LPFSA/HSA plans during ABE is done online through TASC at https://www.tasconline.com/.

29. FSA Carry-Over • Important for Current 2014 Participants: The 2014 plan year is from January 1, 2014 to March 15, 2015. Any money left in your account after March 15, 2015 will be lost. • New for 2015 Plan Year • The Plan Year will be January 1, 2015 to December 31, 2015 – there will be NO grace period from January 1, 2016 to March 15, 2016. Expenses MUST be incurred between January 1, 2015 and December 31, 2015. • If you have any monies left in your FSA on December 31, 2015, you will be able to carry over a maximum of $500 to the 2016 plan year. Anything over $500 will be lost. • You will have until April 15, 2016 to file your 2015 claims.

30. HSA and Health Care FSA Key Differences

31. HSA & FSA Enrollment Restrictions Reminders • Remember, your State Group Health (SGH) enrollment determines your FSA and HSA options. The chart below indicates whether or not you may enroll in a specific account type depending on your SGH enrollment.

32. Transit and/or Parking Benefit • TASC will administer the Transit and Parking benefit for 2015. This is currently referred to as the Commuter Benefit. • Change for 2015: Make annual election during ABE. You can elect to participate for transit and/or parking. • You can make changes to your election at any time during the year.

33. How to Enroll for FSA/HSA with TASC • Online • Phone Enrollment • Paper Enrollment • Enrollees will receive a TASC Card that can be used for all FSA/HSA accounts.

34. Dental & Vision Insurance Options • All health plans, except Standard Plan and SMP, offer dental benefits. • All health plans, except Standard Plan, offer vision (eye exam) benefits. • If dental and vision coverage offered by your health plan doesn’t meet your needs, consider one of our optional dental or vision plans. • Once you are enrolled in these plans, you must remain enrolled in the plan for the entire calendar year.

35. Dental & Vision Insurance Options • Offering an enrollment opportunity: • EPIC Benefits+ (special enrollment with limited dental benefits in the first two years) • Dental Wisconsin PPO and Select • VSP Vision • For these plans, you may take the following actions during ABE: • Enroll • Change plans (if applicable) • Add or remove eligible dependents • Cancel coverage for 2015

36. EPIC Benefits+ • EPIC Benefits+ is offering a special enrollment with a limited dental benefit for the first two years you are enrolled: • Any dependents added for 2015 will be subject to the limited dental benefit schedule. • There is a 24 month waiting period for orthodontic services.

37. EPIC Benefits+ • EPIC Benefits+ provides partial coverage for: • Major dental services (crowns, implants, etc. – not cleanings, fillings, etc.) up to annual maximum of $1,500 • Orthodontic Services (up to $1,000 lifetime maximum). 12 month waiting period. • Dentist of your choice. Greater benefits payable when a Delta Dental Premier provider used • Hospital/Surgical benefit • Accidental Death and Dismemberment (AD&D) benefit • Vision discount program through Davis Vision • OR you may choose to add EPIC Benefits+ with vision insurance at an additional cost

38. EPIC Benefits+ • Benefits are increasing for 2015 • AD&D Employee Loss of Life: $10,000 to $15,000 • AD&D Spouse/DP Loss of Life: $5,000 to $7,500 • AD&D Child Loss of Life: $2,000 to $3,000 • Inpatient hospital stay: $100 per day to $200 per day • Outpatient surgery: $100 per surgery to $200 per surgery • Vision insurance annual frame allowance from $100 to $130 or up to 8 boxes of contact lenses annually

39. 2015 EPIC Benefits+ Premiums • No premium changes. • Premium will decrease if you only cover children on your family plan - will be automatically moved from Family coverage premium to the new Employee + Child(ren) premium category (formerly categorized as Employee + Child).

40. Dental Wisconsin • Dental Wisconsin offers two plans – the PPO plan and the Select plan. You may enroll in one of these two plans. These plans provide partial coverage for: • Fillings and major dental services (crowns, implants, etc.) up to the annual $1,000 maximum • PPO covers annual cleanings and x-rays • Dentist of your choice. Greater benefits payable when PPO members use a Delta Dental PPO provider or any Dental Wisconsin member uses a Delta Dental Premier provider. • Orthodontic services (up to $1,000 lifetime maximum) • Vision discount program through Davis Vision • No benefit changes for 2015.

41. Dental Wisconsin Waiting Periods • You must serve the waiting periods before benefits are payable: • Basic: 3 months (i.e. fillings) • Major: 3 months (i.e. crowns, implants) • Orthodontics: 12 months • Waiting periods may be waived if you had prior comparable coverage (no gap in coverage). • For this enrollment period only, Uniform Dental Benefits under State Group Health will be considered comparable coverage if you enroll in the PPO plan (does not apply toward Select).

42. 2015 Dental Wisconsin Premiums • Premiums decreasing for the PPO plan. • No change to premiums for Select plan.

43. VSP Vision • VSP Vision offers partial coverage for: • Annual vision exam • Eyeglass lenses every calendar year and eyeglass frames every other year • Contact lenses every year instead of eyeglasses or eyeglass lenses • Discounts on laser vision correction • KidsCare program (eyeglasses more often for children) • No benefit changes for 2015.

44. 2015 VSP Vision Premiums • Slight premium increase for 2015.

45. Canceling Dental or Vision Plans • To cancel EPIC Benefits+, Dental Wisconsin or VSP Vision for 2015, must submit an application to your benefits office no later than 4:30pm on Monday December 1, 2014. It is recommended that you take action by October 31, 2014. • If you use eBenefits, you can cancel EPIC Benefits+, Dental Wisconsin or VSP Vision online through October 31, 2014. After that date but before 4:30pm on December 1, you must use a paper application. • All applications and brochures are available on ABE Applications & Brochures page: http://www.uwsa.edu/abe/apps/

46. Individual & Family Life Insurance • If covered by the Individual and Family Life insurance plan on October 1st, may increase coverage level by the following amounts: • Employee: $5,000; $10,000; $15,000 or $20,000 • Spouse/Domestic Partner: $5,000 or $10,000 • Child(ren): $2,500 • Coverage maximums: • Employee: $300,000 • Spouse/Domestic Partner: $150,000 • Child(ren): $25,000 NOTE: Spouse/Domestic Partner or Child coverage cannot exceed employee coverage.

47. Individual & Family Life Insurance • Use Annual Increase Option form to increase coverage or eBenefits, if eligible. • Can decrease or cancel coverage during the ABE period by using a regular application or eBenefits. Your change will be effective 1/1/15. • May decrease or cancel coverage any time by using regular application. • Use the Individual & Family Annual Increase calculator to see your current coverage and determine your premium for 2015 at: https://uwservice.wisc.edu/indfam-increase-calculator/

48. Wisconsin Retirement System (WRS)2015 Contribution Rates • This change will occur on the first check payable in 2015 • Unclassified – 1/2/15 • Classified – 1/8/15

49. Resources • Annual Benefit Enrollment Website– www.uwsa.edu/abe/ • ETF’s It’s Your Choice Website – http://www.etf.wi.gov/members/IYC2015/IYC_State_home.html • HDHP/HSA Frequently Asked Questions - http://www.etf.wi.gov/members/IYC2015/IYC_State_faq.html#hdhp

50. Important Reminders • All benefit enrollments or changes made during the ABE period are effective January 1, 2015. • You have until October 31, 2014 at 4:30 p.m. to submit your paper applications to your institution’s benefits office or make your elections using eBenefits. • Visit www.uwsa.edu/abe for detailed Annual Benefit Enrollment (ABE) information. • Be sure to attend your institution’s benefits fair! • Contact your institution’s benefits office if you have any questions or need assistance.