Saint Mary’s College of California Employee Benefits Advisory Committee (EBAC) September 19, 2017 Meeting FAH 205

EBAC Meeting Agenda: September 19, 2017 Agenda Presenter Call to Order Jean-Ann Balassi Opening Thought/Prayer Tony Kearns Review of Minutes Jean-Ann Balassi FY 17-18 Proposed Meeting Schedule Jean-Ann Balassi Medical HSA Plan Design Overview Matt Biel Review 2018 Updated Contribution Scenarios Filice & Committee Provide Recommendation to VP of Finance and Administration Open Enrollment Update Matt Biel & Jean-Ann Balassi EaseCentral Demonstration Benefit Festival Update Tuition Exchange Update Jean-Ann Balassi Wellness – formation of subcommittee Jean-Ann Balassi Future/Tabled Agenda Items Proposal status: free access to JARC for employees (tabled until budget review) Dependent care stipend (tabled until budget review) Next Meeting Date (tentative 11/30/17 2:30p - 4:00p) Committee

FY 17-18 Proposed Meeting Schedule Tentative Future Meeting Dates 11/30/17 2:00p - 4:00p 1/25/18 2:30p - 4:00p February 2018 TBD March 2018 TBD May 2018 TBD 11/4/2015

Health Savings Accounts 101 (HSA’s) Presented by: Filice Insurance

What is an HSA? Health Savings Account Personal bank accounts owned by employees. These accounts can funded by employees and their employer. Money can be spent on eligible healthcare expenses such as: Doctor’s office visits Major medical procedures Prescription drugs Dental, Vision, and Orthodontia HSA’s are health insurance bank accounts that employees and their employer steadily grow over time.

Benefits of an HSA Health Savings Account Employee HSA contributions are exempt from Federal Income Tax. Employer HSA contributions are exempt from FICA tax. HSA balances rollover year-over-year in the form of savings. HSA funds are 100% portable should an employee leave their employer Individuals 65 and older can spend their HSA funds on non-health related expenses. HSA medical plans typically have lower monthly premiums than traditional HMO’s and PPO’s.

Considerations of an HSA Health Savings Account You must be enrolled on a high-deductible Consumer Driven Healthcare Plan (CDHP). You cannot be enrolled on any other form of medical insurance (no dual coverage). When opening an HSA your account starts with a modest balance and savings grow steadily over time. Family members must be a tax-dependent to be eligible for HSA funds.

Traditional HSA’s vs. Saint Mary’s HSA Health Savings Account Traditional HSA Plan Saint Mary’s HSA Plan Gives members a nationwide PPO network. High Deductibles ($2,500+) & OOP Maximums ($4,000+) result in lower monthly premiums. Employers may have the ability to invest a portion of the premium savings into significant HSA contributions (50% of deductible). Gives members a nationwide PPO network. Rich plan design lead to expensive monthly premiums. Expensive premiums limit SMC’s ability to maintain or increase HSA contributions.

Who typically prefers an HSA? Health Savings Account Individuals without immediate medical concerns. Individuals who rarely visit the doctor’s office. Individuals preparing for major medical services in the future, such as family planning. Individuals interested in a tax sheltered savings vehicle.

HSA contribution limits Health Savings Account The I.R.S. limits annual HSA contributions as follows (employees & employers combined) Individuals 55+ are allowed to make an additional $1,000 “catch-up” contribution each year. 2016 2017 2018 Employee Single $3,350 $3,400 $3,450 Employee + Dependent(s) $6,750 $6,900

Example 1: Annual HSA Contribution $500 Health Savings Account HSA Medical Plan $1,500 Deductible 70% Coinsurance Mary began her HSA on January 1st. In 2018 Mary had 3 doctor appointments that each cost $140 and filled 2 Generic Rx each $25 What is Mary’s total out-of-pocket cost? (-$470 Contribution = $0) ($0 remaining x 30% patient responsibility = $0) $0 total out-of-pocket cost for Mary

Example 2: Annual HSA Contribution $500 Health Savings Account HSA Medical Plan $1,500 Deductible 70% Coinsurance Mary began her HSA on January 1st. In 2018 Mary had arthroscopic surgery that cost $4,000. What is Mary’s total out-of-pocket cost? (-$500 Contribution = $1,000) ($2,500 remaining x 30% patient responsibility = $750) $1,750 total out-of-pocket cost for Mary

Questions?

2018 Renewal Discussion

Open Enrollment Update EaseCentral Demo Captures open enrollment data for 2018 Medical, dental, vision enrollments only All eligible employees must complete the enrollment in EaseCentral to be enrolled in plans for 2018 Employees will receive log in information on or before 10/16/17 Open enrollment will close at 5pm on 11/3/17 Other carrier enrollment processes remain as is and will be completed online through the respective carrier portals Navia Flexible spending accounts (health care and dependent care) Unum Accident, critical illness, whole life, term life voluntary policies

Open Enrollment Update Benefit Festival Update 10/18/17 10a-2p Soda Center Most carriers: Kaiser, Health Net, Delta, Unum, Navia, etc. Free flu shots (not confirmed) Optional biometric screening 3 month JARC membership for participating GaelFit eval for participating (not confirmed) Produce stand offering free fruit and vegetables Smoothie cycle JARC membership 3 month membership raffles (25)

Direct mail postcard to arrive in home week of 10/9/17

Tuition Exchange Update Currently there are 8 enrolled imports Applications will be accepted for the 18/19 academic year from October 2nd 2017 – October 31st

Wellness – Formation of Subcommittee Last year it was determined that a sub-committee would aid the Benefits department with wellness initiatives. The committee will develop the vision and program and strategic initiatives.