1. UCSB Human Resources - Benefits New Employee Orientation Benefits Office Hours 8:00 - Noon & 1:00 - 4:00 893-2489 July 2015

2. Overview  Eligibility  Enrollment  Health and Welfare Plans  Retirement and Savings Plans  Welcome folder

3. Benefits Packages  Full Benefits  Mid-Level  Core Special Groups  UC Transfers  Rehired Retirees  Postdoctoral Scholars A Complete Guide to Your UC Health Benefits, pages 9 – 11

4. Benefits of Belonging - Video http://ucnet.universityofcalifornia.edu

5. Eligible Family Members  Legal spouse, same sex/opposite sex domestic partner  Child(ren) under 26  Legal Ward(s) under 18  Overage disabled child  A Complete Guide to Your UC Health Benefits – pages 12-13

6. Life Events & Family Benefits  Add an eligible family member  31 days to enroll  Family member loses eligibility  Notify Benefits Office to cancel coverage Family Changes Checklist on UCnet A Complete Guide to Your UC Health Benefits – pages 7-8

7. Imputed Income  Your taxable income may increase if you enroll a same sex domestic partner not declared as a dependent on your federal taxes.  Taxed on value of employer-paid medical  A Complete Guide to Your UC Health Benefits – page 6

8. Your Responsibility  Check eligibility requirements before enrolling a family member  Family Member Eligibility Verification  SECOVA will request documents to verify eligibility within a 30-60 days  Your family members may be de-enrolled if you fail to respond to Secova’s request for documentation.

9. When to Enroll  Period of Initial Eligibility (PIE)  PIE is first 31 days of employment  If you miss PIE, 90 day delay for medical plan  Open Enrollment Period  Opportunity to change plans in November for next year  Statement of Health

10. How To Enroll – Period of Initial Eligibility  UCnet ucnet.universityofcalifornia.edu  Sign-in to At Your Service Online = Select “Benefit Enrollment” Your Benefits at a Glance New EmployeesRehired Employees Status/Appointment Change Social Security Number Date of Birth Username Password AYS Online

11. ucnet.universityofcalifornia.edu

12. atyourserviceonline.ucop.edu/ayso Click on New to UC

13. atyourserviceonline.ucop.edu/ayso MMDDYYYY Enter your Date of Birth as password

14. More information

15. Insurance Plan Websites  Find a doctor or participating provider  Summary of Benefits booklets  Prescription drug list Contact information insert - A Complete Guide to Your UC Health Benefits

17. Health Plans  Medical  Dental  Vision

18. What are your priorities?  Cost to enroll – monthly premium  Cost of care  Predictable, low cost copays  Pay a % of each service  Worst case scenario – Out of pocket maximum  Choice of providers  HMO medical group physicians  PPO preferred network or any provider  Effort to manage – coordinating care & bills

19. Which medical plan is right for you?  Medical Plans  Summary of services  Cost of care  Monthly premiums Union Members Rates may be different

20. HMO – Health Maintenance Organizations  Health Net Blue & Gold HMO  Sansum Clinic - Santa Barbara, Lompoc, Santa Ynez  SB Select IPA - Santa Barbara  Regal - Ventura  Physician’s Choice - Santa Maria  Kaiser HMO  closest facilities Ventura & Los Angeles County

21. Using the Health Net or Kaiser HMO Plan You select Primary Care Physician (PCP) When you need care go to your PCP PCP refers you to specialist, x-ray, lab, hospital Find a Doctor on UCnet Live or work within 30- miles of medical group, in most cases Care is coordinated by PCP and medical group If away from group, plan will only cover urgent and emergency care

22. Cost of Care with Health Net & Kaiser HMOs No Deductible Predictable, low cost copays for services and drugs ServiceCopay Office Visit$20 Labs, radiology Urgent Care Visit $0 $20 Outpatient Surgery$100 Inpatient Hospital$250 Emergency Room$75

23. Why select an HMO?  Like lower monthly premiums  Like low cost, predictable copays for care  Like having a Primary Care Physician who helps manage your care  Are satisfied with the specialists in the HMO medical group  Don’t have family members living outside the California HMO service area

25. PPO – Preferred Provider Organization 25  You direct your own care, you decide where to receive services  You pay annual deductibles before plan pays  After deductible, you share the cost of each service with the plan - coinsurance  Your costs are lower if you select preferred providers  “Out-of-pocket Maximum” limits your financial liability

26. PPO Plans for 2015  UC Care  Blue Shield Health Savings Plan  Core (default)

27. UC Care PPO  PPO plan designed for UC  Administered by Blue Shield of California  Blue Shield PPO network  Claim administrator  International plan  Employee & family members may live anywhere  Comprehensive coverage worldwide

28. UC Care Providers – You choose any provider 28 UC Select (Tier 1) UC Medical Centers Other local providers Blue Shield Preferred (Tier 2) In CA Blue Shield PPO In US Blue Cross/Blue Shield Outside US BlueCard Network or any provider Non-Preferred Out-of-Network (Tier 3) Not contracted with Blue Shield in US You have access to providers in all three tiers

29. UC Care – Network providers near UCSB 29 UC Select (Tier 1) Santa Barbara limited to: Sansum Clinics Quest Labs & Unilab A few other specialists More complete networks in: Ventura Santa Maria Lompoc Blue Shield Preferred (Tier 2) Blue Shield PPO physicians & facilities Cottage Hospitals Pacific Diagnostic Lab Pueblo Radiology Provider Directory: http://uc-care.org

30. UC Care Costs 30 UC Select (Tier 1) Copays Blue Shield Preferred (Tier 2) Deductible 20% Coinsurance Non-Preferred Out-of-Network (Tier 3) Deductible 50% Coinsurance Your costs are based on the tier/network that the provider is in Not all services are covered at the UC Select benefit tier Some services are covered only at the Blue Shield Preferred and Non-Preferred tiers

31. Deductible, Coinsurance, Out of Pocket Max 31 You pay You share cost with plan Plan pays 100% after you pay $250 Individual Deductible 20% Coinsurance $3000 OOPM UC Care Example Individual Coverage Blue Shield Preferred (Tier 2)

32. UC Care - Overview  No HMO option, no PCP, no referrals – you select physicians and manage care  You pay a copay or a percentage of fee for services depending on the provider you select  Limited number of UC Select/Tier 1 providers in Santa Barbara  Large network of Preferred PPO providers  Higher premium than HMO  You can live outside of California

33. Why select UC Care?  You like managing your own care  You like being able to select any physician  You don’t mind paying more for a larger choice of physicians  You’re living outside of California OR out of the HMO service areas

35. Blue Shield Health Savings Plan 35 Combines high deductible PPO with savings account to pay out-of-pocket expenses Medical Coverage Blue Shield PPO Health Savings Account HealthEquity +

36. What’s different about the HSP?  High deductible PPO medical plan  Deductible and OOPM shared by all family members  Medical and drug expenses apply to deductible and OOPM  Health Savings Account (HSA)  Use the pre-tax HSA funds to pay the deductible and other health expenses including dental and vision.  UC makes an annual contribution to this account  You may also make pre-tax contributions (optional)  Funds rollover; you keep money in the account

37. Who is eligible for HSP? Health Savings Account “owners”  Must live in US  You can’t be enrolled in:  Health Flexible Spending Account (FSA)  Other traditional health plan  Medicare Part A or B  Can’t be claimed as a dependent on someone else’s tax return

38. HSP – Provider Networks & Coverage  When in US  Comprehensive coverage  Blue Shield PPO network in CA  Blue Cross Blue Shield network outside CA  When traveling out of US  Emergency and urgent care only  NO routine care  Use any provider

39. Blue Shield PPO – Medical Plan Design In NetworkOut of Network Deductible Single Family (2 or more) $1,300 $2,600 $2,500 $5,000 Member Cost Sharing (Coinsurance for medical services & drugs) 20% Plan pays 60% of allowed rate You pay balance Out-of-Pocket Max (includes deductible) Single Family (2 or more) $4,000 $6,400 $8,000 $16,000 Preventive Care by in-network providers is paid in full by plan

40. How does HSA work?  UC makes one annual contribution to HSA  UC contribution is prorated  UC contribution is prorated based on the month the plan starts (see chart on UCnet)  You may contribute to HSA up to annual max (optional):  Pre-tax payroll deduction  Post-tax contributions paid to HealthEquity  Pay expenses or reimburse yourself  Pay expenses or reimburse yourself from HSA using:  HealthEquity debit card  HealthEquity website  Funds rollover; you can invest HSA dollars over  Funds rollover; you can invest HSA dollars over $2000

41. Annual Contributions to HSA SingleFamily (2 or more) 2015 IRS Annual Limit$3,350$6,650 UC Annual Contribution (plans starting in January) $500$1,000 Catch-up contribution, age 55+: $1000 Call HealthEquity if you have questions about contribution limits.

42. Why select the Blue Shield HSP?  You like lower monthly premiums  You like the tax advantages of the HSA  You want to build-up a saving account for future expenses  You have few medical or drug expenses and expect to rollover HSA dollars  You have many medical or drug expenses and will contribute to HSA so you can save taxes on health expenses  You like managing your own care  You don’t mind managing medical accounts

44. Core - Fee for Service  Catastrophic medical plan (default)  PPO plan design  Premium paid in full by UC  $3,000 annual deductible per individual  20% co-insurance for medical and drug  OOPM: Individual $6,350; Family $12,700  You select Blue Shield PPO providers or non-Blue Shield provider

45. Prescription Drugs 45 HMO UC Care Blue Shield HSP CORE Retail (30 day) Generic Generic Brand Brand Non-formulary Non-formulary$5$25$40 You pay full cost of medication until you satisfy the deductible After deductible, you pay 20% at preferred pharmacies Mail Order (90 day) Retail (Maintenance) Generic Generic Brand Brand Non-formulary Non-formulary$10$50$80 Preferred Drug List (Formulary) is different for each carrier

46. Preventive Care 46  All medical plans cover preventive care at 100% with in-network providers  Preventive care includes:  Annual well visit and labs  Well woman visits and labs  Preventive screening tests  Immunizations  See list of preventive services on the plan websites

47. Optum – Behavioral Health  Counseling and substance abuse treatment  Care by therapists, psychologist, psychiatrist  Plans have different provider options and benefits Optum OnlyOptum & Non-Optum Health Net Kaiser UC Care Blue Shield HSP Call Optum to confirm provider is in-network

49. Dental Insurance Plans  Choice of two plans  Delta Dental PPO  DeltaCare USA (HMO)  Premium paid in full by UC  A Complete Guide to Your UC Health Benefits, Pages 22 – 25

50. Dental Plan Comparison Delta Dental PPODelta Care USA (HMO) Worldwide CoverageCalifornia Service Area Choose Delta PPO or non-Delta Large network in Santa Barbara Assigned to dental group Small network in Santa Barbara Coinsurance 20% - 50% Copays - upgrades cost more Maximum benefit up to $1700No maximum benefit Preventive care covered 100%

51. Delta Dental PPO  Worldwide coverage  Preventive dentistry covered 100%  Coinsurance for basic and major dentistry  $50 annual deductible  You pay 20% for basic, 50% for major  Plan pays up to $1700 annual maximum benefit (In-Network PPO dentists)  Delta PPO Providers - Lower out of pocket costs

52. Delta Dental PPO Why select this plan?  You like being able to select any dentist  You don’t mind paying more for a larger choice of dentists  You don’t expect to exceed the annual maximum benefit of $1,700  You’re living outside of California

53. DeltaCare USA (HMO)  Must use DentalCare HMO dental group  Assigned to a dental group  Limited number of dental groups in Santa Barbara  No deductibles  Preventive dentistry covered 100%  Co-payments for basic dentistry  Additional fees for upgrades on materials  Good orthodontic benefit  No annual maximum benefit

54. DeltaCare USA (HMO) Why select this plan?  You don’t mind having a limited choice of dentists  You like lower out of pocket costs  You expect to have major dental work that will exceed the Delta PPO maximum benefit  You or a family member needs orthodontic services

55. VSP - Vision Service Plan  Routine vision care  Exam – 1 per calendar year ($10 co-pay)  Lenses - one set every year  Frames every other year ($130 allowance) OR  Contact lenses ($110 allowance) per calendar year  Select VSP doctor for lower costs  Limited reimbursements for non-VSP doctor  Premium paid in full by UC  Find VSP Choice providers: www.vsp.com

57. Other Insurance  Disability  Life  Flexible Spending Accounts  See the booklet for these plans  Accidental Death and Dismemberment – page 39  Legal – page 43 A Complete Guide to Your UC Health Benefits

58. Disability Insurance Disability Insurance replaces lost income while you are away from your job due to a non-work related illness or injury, including childbirth.

59. Disability Insurance – Overview of Plans  Liberty Mutual Insurance Company  Short-Term Disability  Employer-paid  Short-term benefits only  Supplemental Disability  Voluntary / employee-paid  Short-term supplement and long-term benefits  No State Disability Insurance (SDI) coverage  Worker’s Compensation (work related only)

60. Short-Term Disability  Enrollment is automatic; paid by UC  7-day waiting period  If you have accrued sick leave, you must first use up to 22 working days of sick leave before benefits start  Monthly benefit = 55% up to $800/mo. maximum  26 week disability period  Provides benefits for non-work related disabilities  Does not include long-term coverage

61. Supplemental Disability  Enroll during PIE or with Statement of Health  Employee paid - premium based on age, waiting period and full-time salary rate  Choice of 7, 30, 90, or 180-day waiting period  If you have accrued sick leave, you must first use up to 22 working days of sick leave before benefits start  Coverage for duration of disability up to age 65  Supplements other income to 70% up to $15,000/month maximum

62. Why enroll in Supplemental Disability now?  After PIE – statement of health is required and you can be denied coverage  Can’t enroll during annual Open Enrollment  If you can’t work, can you afford to live on $800/month?  You are planning a pregnancy?

64. Calculating Your Premiums

65. Example: Supplemental Disability & Supplement Life

66. Flexible Spending Accounts (FSA) payroll contribution  Make monthly payroll contribution with pre-tax earnings  Submit claims or use Health Spending Card  Submit claims for reimbursement or use Health Spending Card  Effective date is the 1 st of the month following enrollment; subject to payroll deadlines  Blue Shield HSP members may not enroll in Health FSA Save taxes Save taxes on eligible expenses Health FSA medical, dental, vision, prescription drugs, etc Dependent Care FSA child care adult day care A Complete Guide to Your UC Health Benefits, pages 45-46

67. Flexible Spending Account – Use it or lose it  Expenses incurred in 2015 will be reimbursed from your 2015 contributions  If you do not use all your funds by 12/31/15:  Health FSA carry over up to $500 You can carry over up to $500 of unused funds into 2016. Even if you do not enroll in the 2016 plan forfeit unclaimed funds You will forfeit unclaimed funds above the $500  Dependent Care FSA You forfeit any unclaimed funds Estimate your expenses carefully

69. Retirement Plans Mandatory Plans  University of California Retirement Plan (UCRP) OR  Defined Contribution Plan (DCP for Safe Harbor) Voluntary Retirement Savings Programs  Tax-Deferred 403(b)  457(b) Deferred Compensation A Complete Guide to Your UC Retirement Benefits

70. University of California Retirement Plan (UCRP) 2013 Tier Members  Vesting = 5 years of Service Credit (100% full-time)  Minimum age 55  Defined Benefit Plan:  Age x Years of UCRP Service Credit x Highest Average Plan Compensation (HAPC)  Coordination with Social Security

71. Example: Benefit Percentages Years of UCRP Service Credit Retirement Age 556065 5.0550.0900.1250 10.1100.1800.2500 20.2200.3600.5000 30.3300.5400.7500 40.4400.72001.000 Retire at age 65 with 20 years of UCRP Service Credit Pension Benefit =.5000 of HAPC

72. UCRP Contributions – 2013 Tier  Mandatory pre-tax contributions  Employees contribute 7% of gross earnings  Contribution is subject to collective bargaining

73. Defined Contribution Plan (DCP Safe Harbor)  Mandatory monthly pre-tax employee contributions of 7.5% (in lieu of paying Social Security taxes)  Administered by Fidelity  Contributions default to UC-managed “Savings Fund”  You may invest in other Fidelity funds

74. Retirement Savings Plans  Voluntary employee pre-tax savings programs  Tax-Deferred 403(b)  457(b) Deferred Compensation  Administered by Fidelity  Maximum annual contribution limits  Investment options: Core Funds and other expanded options  www.netbenefits.com  Enroll at any time – NOT subject to PIE

76. Next Steps  Explore benefit options  UCnet – plan descriptions, cost calculator tools, medical plan chooser  Health Plans – providers lists, coverage details, preferred drug lists (formulary)  Enroll before end of “PIE”  Medical, dental, vision insurance  Life, Disability, AD&D, Legal insurance  Flexible Spending Accounts

77. After You Enroll  Check your Earnings Statement on AYSO  Are enrollments and deductions correct?  Attend Retirement Workshops  UCnet - UCRP  Fidelity – DCP, 457b, 403b