2016 DIRECT SERVICE PROVIDER EMPLOYEE BENEFITS OPEN ENROLLMENT PRESENTATION

 Open Enrollment  What’s New  Plan Overview and Costs  What You Need To Do  Get Help AGENDA

Open Enrollment is the ONE time each year that you can choose and make changes to your benefits. WHAT’S OPEN ENROLLMENT? Open Enrollment starts on June 15 th and ends on June 22 nd Remember: the law requires most people to have healthcare coverage or pay a penalty in your taxes. Qualifying events such as marriage, birth of a child, or divorce give you the opportunity to change your benefits outside of open enrollment.

HEALTHCARE REFORM – INDIVIDUAL MANDATE Who All U.S. citizens and legal residents What Individuals must have Minimum Essential Coverage Penalty is charged for each individual without coverage:  2016: $695/individual, $347.50/child, capped at greater of $2,085/family or 2.5% of family income Penalty When Beginning in 2014 How If individual or individual’s spouse or dependent does not have Minimum Essential Coverage, penalty will be assessed against that individual

WHAT’S CHANGING EFFECTIVE JULY 1 ST ? Plan changesChange Medical PlanWe will be changing from Premera Blue Cross to United Healthcare effective July 1 st. Deductibles and Out of Pocket maximums that were met from Jan 1, 2016 – June 30, 2016 will be automatically credited over to United Healthcare Please note, to ensure the most updated data is transferred, the Deductible & Out of Pocket maximum credits will not be posted until August 1 st.

WHY ARE WE MAKING THE CHANGE? Medical/Rx Premera was offering a 15% premium increase for the same benefits you have in place today. United Health care came in with similar benefits with some enhancements. HSA PlanOld Premera Blue Cross New United Healthcare In-network Benefits Chiropractic care visits12 visits20 visits Out of Pocket Maximum Employee + Child/ren $10,000$6,850 Out of Network Benefits Out of Pocket MaximumUnlimited$5,000 for employee only $6,850 for employee + child/ren Office Visits40% after deductible80% after deductible Hospitalization40% after deductible50% after deductible

WHY ARE WE MAKING THE CHANGE? PPO PlanOld Premera Blue Cross New United Healthcare In-Network Benefits Office VisitFirst 6 visits: $45 copay then 100%, All visits: $45 copay then 100% Complex Imaging70% after deductible$150 copay then 100% after deductible Emergency Room$100 copay then 70% after deductible $200 copay then 70% after deductible Urgent CareCombined with Office Visit$50 copay then 100% Out of Network Benefits Out-of-Pocket MaximumUnlimited$6,350 for employee only $12,700 for employee + child/ren Office Visits40% after deductible$45 copay then 100% Hospitalization40% after deductible50% after deductible

MEDICAL

WHAT IS A HEALTH SAVINGS ACCOUNT (HSA)? HSA Plan The HSA is a different kind of medical plan. It has two parts… A medical plan + a savings account Top 3 things you need to know about the HSA plan: 1.You can save money tax-free and use it for current or future medical costs, like your deductible, or that surgery you’ve been putting off 2.The money you contribute belongs to you, not Access Alaska, and earns interest, growing year after year 3.Tax Advantage! Pre-tax! No tax on growth in funds! Never taxable if used on medical expenditures! Tax deferred if used in retirement for ANY PURPOSE!

USING YOUR HEALTH SAVINGS ACCOUNT The IRS makes the rules. In general, the expense must treat a medical condition: Prescription, deductibles and coinsurance (even Long-Term Care insurance) Dental and orthodontia expenses Vision expenses (lenses, contact lens solution, frames, etc.) Acupuncture, chiropractic, rehabilitation NOTE: All over-the-counter (OTC) drugs require a prescription

To be covered by the High Deductible Health Plan and eligible to open a Health Savings Account, you must:  Have a HSA-qualified Health Savings Plan, like Anchorage Chrysler’s High Deductible Health plan  Have no other health coverage other than an HSA-qualified plan  Not be enrolled in Medicare  Not be claimed as a dependent on a tax return  Your spouse cannot be enrolled in a Full Purpose Flexible Spending Account (FSA)  Have not received IHS or VA benefits within the last three months AM I ELIGIBLE FOR A HEALTH SAVINGS ACCOUNT?

The amount you can contribute is set by the IRS. WHO CAN CONTRIBUTE TO MY HSA? Plan Year HSA Contribution Amounts Employee Only Employee + Child or Children 2016 maximum HSA contributions $3,350$6,750 If you are 55 years of age or older during the calendar year, you are allotted an additional $1,000 catch-up to the contribution amounts above.

HSA MEDICAL PLAN OVERVIEW SERVICE Preferred ProviderOut of Network Deductible $3,000 employee only/ $6,000 employee + child/ren (aggregate) Out-of-Pocket Max (per year) $5,000 employee only/ $6,850 employee + child/ren (aggregate) Preventive Care 100% Office Visit 80% after deductible is met *Hospital, Lab, X-Ray 80% after deductible is met50% after deductible is met Emergency Room 80% after deductible is met Urgent Care 80% after deductible is met Chiropractic Care 80% after deductible is met (up to 20 visits per calendar year) Hearing Aids 80% after deductible (once every 3 years) * Please note, Providence and Alaska Native Medical Center are both in-network with UHC

PPO MEDICAL PLAN OVERVIEW SERVICE Preferred ProviderOut of Network Deductible $5,000 employee only/ $10,000 employee + child/ren Out-of-Pocket Max (per year) $6,350 employee only/ $12,700 employee + child/ren Preventive Care 100% Office Visit $45 copay then 100% Hospital, Lab, X-Ray 70% after deductible is met50% after deductible is met Emergency Room $200 copay then 70% after deductible Urgent Care $50 copay then 100% Chiropractic Care $45 copay then 100% (up to 20 visits per calendar year) Hearing Aids 70% after deductible (once every 3 years) * Please note, Providence and Alaska Native Medical Center are both in-network with UHC

PREVENTIVE CARE Preventive Care benefits are always covered at 100%, which means they’re free to you Examples:  Annual physicals  Blood pressure screenings  Colonoscopy for ages 50+ or those at high risk  Immunizations  Well baby and child exams Important! During your preventive exam, your Provider may find an issue or problem that requires further testing or screenings to get a diagnosis. In that case, the additional services are not considered preventive. Also, you may be charged a facility fee, which is not covered under preventive care.

PHARMACY

MEDICAL – PHARMACY PrescriptionsHSA PlanPPO Plan Generics After medical deductible met, $20 copay Preferred Brands After medical deductible met, $45 copay Non-preferred brands After medical deductible met, $70 copay Mail order (90-day supply) After medical deductible met, 2.5x retail copay New Formulary – Please log into the myuhc.com website to verify how your specific drug is covered. Prior Authorization maybe required on certain drugs, so please consult your doctor regarding the change in carriers. Mail Order refills require a new prescription from your doctor. Get your prescriptions filled before June 30 th to ensure you and your dependents have a supply.

COST

MEDICAL/RX PER PAY PERIOD Who’s covered?2015 HSA Employee Contribution 2016 HSA Employee Contribution Employee (just you)$53.78$54.69 Employee + Child(ren)$437.24$ Who’s covered?2015 PPO Employee Contribution 2016 PPO Employee Contribution Employee (just you)$53.78$54.69 Employee + Child(ren)$451.78$407.04

VISION PLAN BASICS – PAID IN FULL BY ACCESS ALASKA BenefitsVSP NetworkNon-VSP Network Exam$10 copay then 100%$10 copay then 100% up to $50 benefit limit Hardware$25 copay then 100% up to benefit limit Frequency Exam, lenses and frames: once every 12 months Lenses Single lens Bifocal lens Trifocal lens 100% 100% up to $50 100% up to $75 100% up to $100 FramesUp to $130 (plus 20% off any out-of- pocket expense) Up to $70 Contact lenses (in lieu of frames) 100% up to $130100% up to $105

EMPLOYEE ASSISTANCE PROGRAM w/ United Healthcare  Available 24 hours  Services include: Family and personal issue counseling Legal Service Financial Services  Call toll free

WHAT DO I DO NOW?

NEXT STEPS  Your current elections will carry forward into  If you are enrolling for the first time OR if you wish to make changes to your current election, you will be required to complete a new enrollment form.  If you are waiving coverage, you will need to complete a new enrollment form, check Waive on the top of the form, and sign.  Log into the United Healthcare website ( to confirm that your provider is currently in the Core network. All enrollment forms must be submitted to HR by Wednesday June 22 nd.

We’re here to help We will assist you with questions/issues about your benefits package. Monday – Friday, 7:00 a.m. to 4:00 p.m. AST by phone or Benefit Advocate: There are 7 Benefit Advocates that can assist you Toll Free: (800) ASK US…

Questions?